As verified by:

  • Joel Cohen, FCPA, FCA, C.Med
  • Michael Goldberg, B.Comm (Hons), LL.B., TEP
  • Jay Goodis, CPA, CA
  • Raj Juneja, LL.B, MBA
  • Manu Kakkar, CPA, CA, MTax, TEP, BSc (Hons)
  • Mac Killoran, CPA, CA
  • Kim Moody, FCA, TEP
  • Kevyn Nightingale, CA, CPA (ON), CPA (IL), TEP
  • Elie Roth, LL.B., LL.M., PhD
  • Marie-Emmanuelle Vaillancourt
  • Peter Weissman, CPA, CA, TEP
  • Tom West, CPA
  • Nathan Wright, LL.B., MTax, TEP


Public verifications:

Shawn Whatley, President of the Ontario Medical Association: these changes “could create a staggering 73% effective tax rate on the earnings from investments held inside professional corporations.”

Allan Lanthier, former Chair of the Canadian Tax Foundation: “If a [Canadian-controlled Private Corporation] pays tax on business income at the small-business rate, an individual in Ontario who is taxed at the top personal tax bracket will face a combined tax rate on investment income, including the tax paid by the CCPC, of close to 73 per cent in 2017.”

Dr. Jack Mintz, President’s Fellow at the University of Calgary’s School of Public Policy: “Under the new rules, passive income could now be taxed at an almost-confiscatory tax rate of over 70 per cent, as government claws back the benefits of the low corporate income tax rate on business income.”

Devan Mescall, assistant business professor at the University of Saskatchewan, in the Financial Post: “the proposed changes would bring the tax rate up to between 66 per cent and 71 per cent.”

Peter Weissman, tax accountant and former Governor of the Canadian Tax Foundation: “Investment income in a private business will ultimately be taxed at more than 70 per cent by the time the shareholder receives the funds personally.”

Mac Killoran and Jay Goodis, tax accountants: the changes “would result in a combined corporate/personal tax burden for an Ontario business owner of 73 per cent on corporately-earned investment income and 59 per cent on corporately-realized capital gains.”