September 2017 

Business Owners Take Note:

    wundervisuals via Getty Images

A recent Federal Discussion paper was issued in July that creates substantial tax changes to many private corporations.  The federal government is dramatically changing the tax implications for business owners.  For information on how this might impact you, please read some of the detailed articles available.

The purpose is to work towards tax fairness, however curre ntly the system is designed to provide equal taxes once funds are pulled through the business and withdrawn personally. Business owners can use certain private corporations to defer the withdrawal of income and this is a benefit that the average employee doesn't have.
However, right now Canada is competing in a global economy and it's important that we enco urage our entrepreneurs to create business, create ideas that move our economy forward. Successful businesses move Canada forward as a whole.
Small-Medium Private businesses employ about 45-50% of all working Canadians.  Without many of these structures, there would be far fewer jobs.

So, please speak out and voice your opinion, whether pro or con about this major change to private corporation tax rules.

Here are a few reasons why I do not support it.
*Business owners take on substantial risk to start a business.  They also may earn very little money for many years, and frequently have no job security, no corporate pension plan, no benefits.  On top of that, they usually work many more hours than the average employee.  Why are we penalizing them when the income finally starts to generate?

*A few tax breaks help to compensate them for the many risks they take, and removing this incentive will likely mean fewer entrepreneurs, and less reason for Canadians to take risk?  I believe we need to create incentive to build businesses at this time when it's critical to be competitive globally.

*This new federal tax, is also coming at the same time as the Ontario Bill 148 which affects business owners with increased minimum wage costs, and an increase in empl oyee protection measures.  Some businesses cannot manage these increases at the same time.

*Taxing investment income inside the business at higher rates also means that the companies are taking on more risk as they will often choose NOT to leave funds inside the company.  This money is often necessary to help the business manage the lean periods that most will experience. 

*In the new recommendations, it is more favourable to sell to arms-length parties than to sell to family members.  This seems unreasonable, especially with some businesses where it is often in our best interest to keep it in the family, such as the family farm.
There are many opinions, but it's critical for you to speak with your accountant and more importantly, your MP to voice your opinion on this dramatic change.  

Happy Anniversary to Canadian Income Tax:  
On another note, it's the 100th anniversary of Canadian Income tax.  Here's an article that's interesting to understand the role of income tax over the last 100 years. 

Where were you this long weekend?

As summer winds down, and many families celebrated the last long weekend of the summer, where did you gather? Did you know there were so many names for the family vacation get-away?
As often requested, here's a recent article on some of the tax and estate planning issues surrounding the sale or transfer of your vacation property.
Fall at The McMichael Gallery 

As a reminder, there are some amazing opportunities to see art at The McMichael Gallery.  In fact, my recent favourite is the Size Matters exhibit, and the Group of Seven Guitar Project.  As a sponsor, I am happy to offer 2 for 1 tickets to the Gallery.  Simply e-mail my office, and we will provide a special code so you can enjoy this Canadian jewel.  Remember, with the amazing conservative area around the gallery, it's a great place for a family walk in the Fall.
If you would love an opportunity to experience the beauty  of the grounds and art of the Gallery, contact us for the Special Assante discount.

Financial Planning 
Missed Wealth Matters Webcast?
Learn how Canadian individuals and business owners alike can take advantage of these alternative structures that expand on the tax benefits achieved through a TFSA. Live Playback Here

Have Question about TFSAs and alternatives available?
Give me a call.

Cashflow Planning 
Let's make sure you are on track for your financially independent future, contact us to review how Cashflow Planning can help you achieve your future.


Joy of Aging 2017 Early Bird Ticket sales ends September 22nd

Sponsorship Opportunities are also available.

Joy of Aging 2017 is a special, fun and informative morning to embrace longevity and healthy aging. All proceed will go to the Mackenzie Health Foundation. T ickets, event details and sponsorship opportunities are all on the website-  There are many ways to be part of this great event that has 300+ annual attendees. We would be thrilled to showcase your business.  If you have any questions about the fundraiser let me know.


Portfolio Construction: The Art of Business Cycle Analysis
The big question, when will markets fall? The August commentary features a look at how to analyze where we are in the business cycle to help determine this

The Big Picture:  The Lagging Canadian Market
Learn about why exposure in different sectors and different markets is critical to success, what's happening now, and where we are likely to see growth in the future. 
Featured in September 2017 GoodTimes Magazine.

We often describe the three phases of retirement this way:

On September 19th join me at the Richmond Hill Centre For the Performing Art for a special presentation and workshop with realtor Sharon Parenteau discussing downsizing options and resources available for a comfortable transition.

To register please email or call (905) 707-5220
REFERRALS: Thank you for your referrals. We really appreciate you passing along our name.  If you know somebody who needs a 2nd opinion on their portfolio, or who really needs to focus on planning for the future and setting some objectives, I can help.  Ensuring you have the retirement income you need and paying the least amount of tax along the way is how I enable you to meet your personal financial objectives.  
Quote of the Month:  
Change the way you look at things, and the things you look at change.  Anonymous
Janine Purves, CFP® , CPCA, CCS  

This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd.

Insurance products and services are provided through Assante Estate and Insurance Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and is registered with the Investment Industry Regulatory Organization of Canada.

Assante is an indirect, wholly-owned subsidiary of CI Financial Corp. ("CI"). The principal business of CI is the management, marketing, distribution and administration of mutual funds, segregated funds and other fee-earning investment products for Canadian investors through its wholly-owned subsidiary CI Investments Inc. If you invest in CI products, CI will, through its ownership of subsidiaries, earn ongoing asset management fees in accordance with applicable prospectus or other offering documents.

Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.  Please read the prospectus and consult your Assante Advisor before investing.

Janine Purves  
Senior Financial Advisor
Assante Capital Management Ltd.
Ph (905) 707-5220
Fax (905) 707-1035
9130 Leslie St.,
Suite 302,
Richmond Hill,
ON L4B 0B9
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