Budget 2018 : Update on Passive Income Rules
Updated: Dec 10, 2019
The Liberal government’s third federal budget promises more help for the middle class,workplace equality, a boost for tomorrow’s economy and a fair tax system.
But, for all those promises, “there’s not a lot there for the average individual, and not a lot of changes from a personal tax perspective,” says Jamie Golombek, managing director for tax and estate planning at CIBC Financial Planning and Advice.
He notes there are also “very few changes in credits.”
As a result, the big ticket item of Budget 2018 is “how the government will deal with passive investment income inside a private corporation,” says Golombek. The news on this front “will be welcomed by private business owners in terms of the proposed change.”