On the same day as Finance Minister Morneau is expected to introduce his revisions to the rules relates to the Tax on Split Income (TOSI), the Standing Senate Committee on National Finance has tabled its report.
Without going into detail, the Committee has 3 strong recommendations, none of which will find favour with the Government, but which reflect the overwhelming position expressed by the tax and business communities:
That the Minister of Finance withdraw his proposed changes to the Income Tax Act respecting Canadian-controlled private corporations.
That the Government of Canada undertake an independent comprehensive review of Canada’s tax system with the goal of reducing complexity, ensuring economic competitiveness, and enhancing overall fairness.
That, should the Minister of Finance proceed with his proposals to amend the Income Tax Act respecting Canadian-controlled private corporations, then he should delay their implementation until at least 1 January 2019, and:
release, as early as possible, draft legislation and related guidance documents;
undertake thorough, cross-Canada consultations with businesses, tax specialists, physicians, farmers, and other Canadians on draft legislation;
undertake, and release publicly, an economic impact assessment of the proposals;
conduct, and release publicly, a gender analysis of each of the proposals; and
assess, in cooperation with provinces and territories, the potential impacts of the proposals on the accessibility of health care, and consider measures to avoid these consequences.
I will post further when Morneau tables his new rules.