The Tuesday news briefing: An at-a-glance survey of some top stories
Highlights from the news file for Tuesday, July 18
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FEDS UNVEIL PLANS TO CLOSE TAX LOOPHOLES: The federal government is proposing measures to tighten loopholes for private corporations that it says enable many Canadians to “unfairly” cut down how much tax they pay. Finance Minister Bill Morneau unveiled plans Tuesday designed to prevent some business owners from using legal strategies to shield part of their income in order to gain tax advantages. Even Morneau himself, who had a successful business career before entering politics, admitted that if the changes are introduced, he will likely pay more taxes going forward. The possible changes include steps to prevent business owners from using their private corporations as a way to shift their income among family members subject to lower personal tax rates — even if those relatives are not involved in the business. The federal government also released proposed changes to target those who gain tax relief through passive investment income, which enables corporate owners and employees to make one-time investments from $100,000 of pre-tax income and retain them for 10 years.
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