Today, I appeared before the Standing Senate Committee on National Finance as part of consultations on the proposed changes to the Income Tax Act respecting the taxation of private corporations. I focused my comments on the proposed tax treatment of passive investment income in private corporations and its negative impact on access to capital for small businesses and capital formation in the country. I illustrated how the proposed measures will create a disincentive to business investment and entrepreneurship, at a time when such investment is needed to spur economic growth and employment. I called on the federal government to take these proposals off the table, noting the existing tax rules are well understood, fair and have worked effectively for more than four decades. You can access my presentation here.
