Canada: Taxation of private companies | KPMG Global
Share with your friends

Canada: Taxation of private companies; consultation period has closed

Canada: Taxation of private companies

The Canadian government’s 75-day consultation period on its proposed private company tax changes ended 2 October 2017.


Related content

With the close of the consultation period, it remains to be seen what changes (if any) the government would make to the proposals, and whether there would be any delay in the effective date of the proposed tax regime for private companies.

KPMG observation

The government’s proposed approach to the taxation of private companies would represent a major shift in tax policy for private companies, and would significantly change taxpayers’ tax planning involving “income sprinkling,” claims for lifetime capital gains exemption, and converting a private company’s regular income into capital gains. Tax professionals have asserted that delaying the effective date of these proposals would allow for a more comprehensive review of the government’s tax fairness objective and, at the same time, allow for any new rules not to be unduly complex for taxpayers and their private corporations. A delay could also give business owners more time to fully comply with any new requirements.


Read an October 2017 report [PDF 76 KB] prepared by the KPMG member firm in Canada

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal