- Sprinkling income using private corporations: draft measures include the extension of kiddie tax rules to adult family members, elimination of the Lifetime Capital Gains Exemption (LCGE) to minor kids, elimination of the LCGE to gains accrued by trusts, etc.
- Holding a passive investment portfolio inside a private corporation: draft legislation includes alternative methods to discourage businesses from accumulating excess funds taxed in the corporations at lower tax rates.
- Converting a private corporation’s regular income into capital gains: the proposed measures include the extension of the anti-avoidance provisions currently targeting income stripping transactions that take advantage of capital gains treatment (whether or not LCGE claimed).
Senior Tax Manager
Audit Principal and Senior Manager of Financial Services