(Toronto, October 3rd, 2017) On July 18, 2017, the Department of Finance released a Consultation Paper directed at the taxation of private corporations and their shareholders (the "Proposals"). Over the past 75 days, PwC Canada has analyzed the Proposals in detail, participated in discussions with many of our over 8,000 clients who operate and own private businesses, and consulted with several business and industry groups who also represent the many Canadians who could be impacted by the Proposals if they are not altered. On Monday October 2, PwC Canada delivered its submission to the Department of Finance which is available using the following link in which we outline several concerns and recommendations.
Our submission provides the Minister with a comprehensive technical response including the following points:
One of our biggest concerns is that the proposed rules have many unintended consequences that will not be helpful to private businesses of all sizes and may act as a deterrent in the short and medium term for entrepreneurs operating or considering operating in Canada. This concerns us as private companies are an important backbone of the Canadian economy.
PwC Canada strongly recommends that the Minister of Finance engage a group of independent experts, from many disciplines and stakeholders, to further study the Proposals and their impact on both tax policy and the broader economy. This should include an assessment of the potential impact of the Proposals on future investment in Canada and its ability to attract and retain top talent. PwC Canada is of the opinion that the Proposals require a more in depth analysis. We are supportive of changes to the tax laws but believe they need to be reviewed and considered from the perspectives of many stakeholders.
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