Passive Income and alternatives for shareholders?

Wednesday, December 6, 2017

  • Probably one of the most far-reaching changes set out in the July 18, 2017 finance release are the proposals that could significantly change the way passive income is taxed within a private corporation.
  • What are the alternatives for shareholders?
  • Should shareholders trigger gains now? Should they pay out the capital dividend account? Should the company trigger RDTOH and pay out taxable dividends now?
  • How does one deal with accumulated surplus and equity within the holding corporation? What are the potential consequences going forward?