Tax Planner Thoughts for 2022

http://www.canadian-accountant.com/content/practice/tax-topics-we-re-thinking-about-this-fall

 

"The Liberals have indicated they would continue to move forward with plans to allow Canadian controlled private corporations to immediately deduct up to $1.5 million of "growth investments" announced in their 2021 budget (see here for a budget commentary).

The Conservatives propose providing a 5% investment tax credit for any capital investment made in 2022 and 2023, with the first $25,000 to be refundable for small businesses and a 25% tax credit on amounts of up to $100,000 that Canadians personally invest in a small business over the next two years.

Both the Liberals and Conservatives also propose additional tax credits/incentive to encourage investment in green technology and businesses.

As a result, 2022 may be a good year for businesses to consider making significant capital investments, especially "green" ones. Businesses may be able to take advantage of this by planning their own capital expenditures or by selling their products and services to clients who are making capital expenditures."

 

Are Business Owners' Affairs In Order?

As indicated above, the Liberals certainly, but also even the Conservatives, are talking about increasing CRA scrutiny, especially of the "wealthy." As detailed here, starting this year there are increased reporting requirements for trusts, and as detailed here, there is a general trend towards additional corporate disclosure requirements. All this suggests scrutiny of businesses and their owners at a higher level than ever before.

Tax legislation has also changed significantly over the last decade and the last two years have been chaotic, resulting in many business and personal changes.

Given all of the above, we suspect that many corporate structures and estate plans may now be dated and due for a review.

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