The controversial tax-reform proposals have been sweeping the internet the last couple of months. The federal government has a plan to address the use of some common tax-management tools for private corporations. But how much will these changes cost small businesses?
In the federal proposals, there are 3 main changes being discussed:
- To limit the spreading of income and capital gains among family members associated with the corporation.
- To prevent a corporation from investing in passive assets using corporate after-tax earnings.
- To ensure that capital-gain tax treatment cannot be used in taking out corporate earnings in lieu of taxable dividends.
If you are concerned at all with whether or not your small business will be impacted by these changes to the federal tax laws, DAS Legal is here to help. They offer an Elite Package that has coverage for Tax Protection. After you have filed your taxes, if you happen to get audited and informed by the CRA that you owe any additional taxes because they did not comply properly with the new tax laws. DAS Legal will assign you a tax lawyer to work with you and your accountant (if applicable) to represent you with the CRA.
There is a $500 tax protection deductible, but DAS Legal will cover all of the reasonable and necessary costs incurred by the appointed representative, this includes any of the additional expenses and disbursements such as experts’ fees, court fees, and reports. If you are audited DAS Legal will cover you.
Still have questions? As a DAS policyholder, feel free to call their helpline with any general legal questions before filing a claim – 1-877-255-4269. Policies start at $175+ tax per year, for more information click here.
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