Here is a look at the issues facing SME in Canada

1. SMALL BUSINESS
– CANADA -
TAXATION
BY: PAUL YOUNG CPA, CGA
DATE: SEPTEMBER 9, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. SMALL BUSINESS TAX RATE
Average
Combined
Tax
14.5%
Income below
45,000
Combine Tax rate
25%

4. OTHER TAXES PAID BY SMALL
BUSINESS
• Goods and Service Tax
• Provincial Sales Tax
• Excise Taxes
• Duties
• Business Licensing Tax
• Payroll Taxes
• Family Members are exempt from EI
• CPP is still deducted and collected
• Income tax is deducted and collected

5. SMALL BUSINESS CONTRIBUTION TO GDP
• 42% of GDP is derive from small business
• 2/3 of small business earned less that 73,000
• 1/3 of small business earned more than 250,000
• Many small business owners work over 70-80 hours in a week
• Small business owners take risk including investing their savings into
their business

6. SMALL BUSINESS IN CANADA
Source - https://economics.cibccm.com/economicsweb/cds?TYPE=EC_PDF&ID=2814

7. NEW TAX PROPOSAL
https://www.bdo.ca/en-ca/insights/tax/tax-alerts/a-detailed-review-the-
government-private-company-consultation-paper/ or https://www.bdo.ca/en-
ca/insights/tax/tax-articles/tax-planning-using-private-corporations-the-
government-speaks/

8. SMALL BUSINESS DEDUCTION PROPOSAL
Source - http://business.financialpost.com/entrepreneur/fed-tax-changes-do-not-post or http://www.bnn.ca/5-lightning-rods-in-ottawa-s-tax-plan-for-small-
businesses-1.844988
This is a tax on
wealth

9. CFIB / INCOME SPRINKLING
• http://insurance-journal.ca/article/proposed-tax-changes-raise-uncertainty-for-small-businesses-says-cfib/ or
http://www.ctvnews.ca/politics/liberals-could-pay-political-price-for-tax-changes-cfib-warns-1.3576409
The federal government’s proposed changes to close what it calls “unfair” tax loopholes could end
up costing them politically, the Canadian Federation of Independent Businesses warns.
Speaking to CTV Power Play’s Don Martin on Tuesday, CFIB president Dan Kelly said if the Liberal
government follows through on changing the way small business owners are taxed, it’ll result in
“massive uncertainty” for years, stunting business growth.
“We just delivered 15,000 signed petitions this morning from CFIB members to MPs across the
country,” said Kelly. “I think a lot of those people were or are Liberal supporters, and they run the
risk of losing some of the people that are in their corner right now. That’s something that I think any
political party needs to take seriously.”

10. TAX FAIRNESS
Source – Fraser Institute - https://www.fraserinstitute.org/sites/default/files/comparing-government-and-private-sector-compensation-in-Canada-2016.pdf
I have reviewed the tax proposals in detail. A recurring theme of
your party’s proposals, and specifically how they are being
presented to the public, is the need to equalize a business owner
with someone who is paid salary as an employee. Business owners
add to the economy by way of their intellect, will and
determination, as do employees. However, business owners of
private companies, unlike public corporations, take on all the risk
of a business. They guarantee the corporations bank loans by
putting up their homes as collateral. They inject funds into the
business as necessary. They pay themselves last, after employees,
lenders and Canada Revenue Agency are paid. I had clients, a
husband and wife, who had their family business go bankrupt this
past year due to the loss of a major customer. They had to liquidate
their life savings in order to pay the corporation’s bank debt and
pay the employees. All of the risk of that business flowed to
them. This must never be overlooked in the discussion of tax
policy. You may say ‘But the employees lost their jobs as well”. To
that I say it was through the effort, energy and risk taking of the
business owner that those jobs were created in the first place. If
you ask me if business owners should have some form of upside for
their efforts, I emphatically say yes. This only makes sense
because that same business owner is left holding the bag if the
business does not survive.
Source - https://www.linkedin.com/pulse/response-justin-trudeau-
comments-i-want-clear-people-who-
macintosh/?trackingId=0lM0C%2B2vTXPwbk%2BaFsshvg%3D%3
D

11. JUSTIN TRUDEAU / SMALL BUSINESS
Source - http://globalnews.ca/news/3723888/justin-trudeau-small-business-tax/
This is same
PM that
could define
the middle
class
Source -
https://www.youtube.com/wat
ch?v=fNgcA4DBGOs
Trudeau “Live pay cheque to pay
cheque
Trudeau “We need fixed a system
that rewards 250,000 income
earners with low taxes”
Bernie Sanders said we
need hike taxes on the top
1%