Canada's Original Think Tank

Small Business Tax

Small Business Tax

Small Business Tax

Small Business Tax


Published on 27 September 2017
Hansard and Statements by Senator Art Eggleton

Hon. Art Eggleton:

Senator Harder, I want to come back to the tax fairness issue. In particular, one of the main parts of what the government has been considering is relative to sprinkling.

There was an interesting column last week in the Toronto Star by the business columnist, Jennifer Wells. In her research, she uncovered a family of four. The man was a consultant in business who worked out of his home. His wife and adult children, 18 and 21 years of age, had no involvement in the business, but he didn’t report all of his income as his income. He gave dividends to the other members of his family.

Next door, or down the street, wherever it is, is another person who happens to be an executive in a small company. As it turns out, they were making much the same money, about $220,000 in the year for research; I think it was 2016. However, the ones involved in the sprinkling paid $44,000 in income tax and the other person with much the same income was paying $79,000 in income tax.

Is that the kind of unfairness and inequity that the government is trying to deal with?

 

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