On July 18th, Finance Minister Bill Morneau released a detailed package of tax changes affecting small business. On July 19th, I wrote to my MP (Karina Gould from Burlington, Ontario). With only a 75 day consultation period, it took 42 days for my MP to respond. Below is my email thread with my MP:
1. Initial Email sent to my MP on July 19, 2017
Good afternoon Karina.
“Dear Mr. Laundry,
As the Member of Parliament for Burlington I would like to thank you for taking the time to write to me regarding the ongoing consultations on tax planning using private corporations.
The Government of Canada is working to create and economy that works for the everyone, and where businesses- both large and small- have the confidence to invest, grow, and create good jobs.
Since coming to office, the Government of Canada has taken clear action to support Canadian businesses, the drivers of growth and creators of good, well-paying middle class jobs. We have made critical investments in our infrastructure, and are supporting innovation throughout our economy. We have ensured that Canada continues to have the lowest small business tax rate in the G7
These efforts are having an impact. Canadians are among the world leaders in the number of companies started, per capita. In the past year, the Canadian economy has created more than 300,000 new jobs. The International Monetary Fund has praised Canada’s economic model and predicts we will lead the G7 in growth for 2017. The potential changes being discussed as part of this consultation will maintain this advantage and will not impact the ability of Canadians to invest in and grow their business.
This is why the Government of Canada is consulting on proposed changes to the tax regime. We want to ensure businesses continue to invest in themselves, but close loopholes that are unfairly used. To ensure that this is done fairly, the Government of Canada wants to hear from you. If you would like to submit information to the Tax Planning Using Private Corporations consultation please visit the website found here. This consultation concludes October 2nd, 2017.
Once again, thank you for taking the time to write to me regarding the ongoing consultations on tax planning using private corporations. I encourage you to continue to write on the issues that matter to you. I hope this addresses your concerns.
Hon. Karina Gould
Member of Parliament, Burlington”
3. My Response, sent August 29, 2017 (11 minutes later)
“I need the government to explain how these are “loopholes”. The tax policy has been in place since 1972. In 2006, the Federal Government (Liberals) would not increase the pay of physicians in Ontario. As a result, the government allowed Medicine Professional Corporations to use dividend sprinkling and other commonly used tax planning strategies (which are being targeted) as a solution to negotiations with the Ontario Medical Association.Karina, I invite you to my brand new office (located in Aldershot), to sit with myself and 3 other tax experts to explain our position. I think once you learn about the real-world implication of this poor initiative, you’ll understand how it affects your constituents in Burlington.My office is 678 Spring Gardens Road (next door to Easterbrooks). Can we pick a date and time?”