Brief on the Morneau reform - Passive income - Erie News Now | WICU & WSEE in Erie, PA

Brief on the Morneau reform - Passive income

Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact pressreleases@franklyinc.com

SOURCE Brassard, Goulet, Yargeau

QUEBEC CITY, Sept. 28, 2017 /CNW Telbec/ - On July 18, Minister of Finance Bill Morneau announced proposed tax reform measures affecting private corporations. The measures deal with income splitting, capital gains deductions, and passive income. As specialists in integrated financial planning and portfolio management, including investment taxation, we have drafted a brief to Minister Morneau on the issue of passive income, signed by 17 professionals from our firm.

An English version of the brief is available on our website at http://www.brassardgouletyargeau.com/pfp/touslesarticles.aspx#a43. There is an executive summary on page 3, and the conclusion on page 44 also provides a good summation. A French version is also available on the home page of our website http://www.brassardgouletyargeau.com.

The brief objectively assesses why the proposed measures do not pass muster.

  • The consultation document gives the example of an entrepreneur who comes out ahead $4,885 by investing using a private corporation, but fails to mention the $6,658 in additional taxes he must pay-a tax rate equivalent to 57.7%. All figures we use come from the consultation document. Nothing is made up. We show by example that the government will lose tax revenues if it implements the proposed measures.
  • Taxing corporations at the highest individual tax rate is unrealistic and penalizes taxpayers. Contrary to media reports, the reform will affect entrepreneurs who earn less than $150,000.
  • The new measures will be hugely complex and very costly for entrepreneurs to manage.
  • The brief explains basic theoretical concepts, including the true nature of RRSPs, which is always a surprise to readers. These concepts help readers understand the mistakes the government is making; they show that the government is the joint owner of all taxpayer investments (TFSAs excepted), and benefits from the same returns that investors do.
  • Sections II-A and III-D examine certain economic aspects of interest and even explore the idea of a sovereign wealth fund.

Brassard Goulet Yargeau, services financiers intégrés is an independent firm specializing in high-end integrated financial planning, with some 45 collaborators and offices in Montreal and Quebec City. We provide financial services to entrepreneurs, professionals, high-income earners, and retirees, including investment management and taxation.

HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Brassard Goulet Yargeau, Services financiers intégrés is a personal trade name of Éric Brassard, Miguel Yargeau, David Poliquin, Robin Lévesque, Alexandre Boivin and Sébastien Lavoie-Ramsay.

 

©2017 PR Newswire. All Rights Reserved.

Powered by Frankly
3514 State St. Erie, PA 16508
Newsroom: (814) 454-8812
Business offices: (814) 454-5201
WICU FCC Filing
WSEE FCC Filing
Share:
Share Stories
Submit your stories to our site!
Share Photos
Share your photos in our community galleries
RSS Feeds
All content © Copyright 2000 - 2017 WICU. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.
                   WICU/WSEE - 3514 State Street Erie, PA 16508 - (814) 454-5201 - info@wicu12.com