The last 24 months have seen a deluge of tax announcements...
| |
| | | February 2019 | Family trusts: the aftermath
Michael Heaford, CPA, CA, CFP, TEP, is Senior Principal, Tax & Financial Planning Services in the Leamington office of Baker Tilly
Jason Melo, CPA, CA, CFP, CPA (Illinois), is Managing Partner in the Leamington office of Baker Tilly | The last 24 months have seen a deluge of tax announcements from Ottawa with adverse impacts on private family businesses and corresponding family members. Announcements were implemented, modified and shelved, so taxpayers and advisors are still coping with the changes. Many taxpayers are understandably confused about which planning strategies remain available.
Two changes (discussed in previous Baker Tilly publications), impact the use of family trusts (herein referred to simply as “trusts”):
Expanded “kiddie tax” rules, or tax on split income (TOSI), subject additional sources of income to tax at the top marginal rate. Taxpayers involved or connected with a trust will have personal details disclosed to the Canada Revenue Agency (CRA) as part of expanded trust disclosure requirements effective for the 2021 year. These new requirements will increase the work and costs of maintaining a trust. |
| | | Baker Tilly Ottawa LLP 400 - 301 Moodie Drive
Ottawa, Ontario
K2H 9C4 Canada
[email protected]
www.bakertilly.ca |
| This email is sent by Baker Tilly Ottawa LLP, formerly Collins Barrow Ottawa LLP. 400-301 Moodie Drive, Ottawa, ON, Canada K2H 9C4.
Baker Tilly Canada periodically publishes Tax Alert for its clients and associates. It is designed to highlight and summarize the continually changing tax and business scene across Canada. While Tax Alert may suggest general planning ideas, we recommend professional advice always be sought before taking specific planning steps. |
|
|
|
