FURTHER RETREAT FROM JULY 18TH PROPOSALS
Yesterday I sent out a newsletter setting out the changes that have been announced so far in the retreat from Finance Minister Morneau’s disastrous July 18th tax proposals.
So far, the Finance Minister has announced some change to the income sprinkling provisions (albeit minor); the repeal of the proposals related to the Lifetime Capital Gains Exemption; some minor changes to the passive investment income rules and a lowering of the corporate tax rate.
Today the government announced that they will not be proceeding with the provisions dealing with the conversion of ordinary income into capital gains. This announcement says that they will study this matter in consultation with the business and farming communities over the next year. Unfortunately, they have not said whether any changes proposed after this consultation will be retroactive to July 18th, 2017 or will only apply going forward.
Some of the announced changes are to be included in legislation in the 2018 Budget, which will likely be in March or April of next year.
Morneau has now announced that the Fall Economic Statement will be tabled on October 24, 2017. It is possible that we will see some draft legislation included with that Economic Statement.
The previous Trudeau government had a habit of legislating by Press Release. It looks like Justin is, truly, his father’s son.