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On Tuesday, Finance Minister Bill Morneau will introduce the Liberals’ first federal budget and Canadians will learn whether the government will follow through, temper or back down entirely from some of its pre-election promises and perhaps introduce some previously unannounced tax changes. Here are three areas of concern to some taxpayers and predictions as to what may happen on Tuesday.

Small business taxation

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In its pre-election platform, the Liberal party stated it “will ensure that Canadian Controlled Private Corporation (CCPC) status is not used to reduce personal income tax obligations for high-income earners rather than supporting small businesses.” Their platform quoted a University of Ottawa study, estimating that “approximately $500 million per year is lost, particularly as high-income individuals use CCPC status as an income-splitting tool.”

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When this was announced, business owners, including incorporated professionals such as doctors, lawyers and accountants, feared that the government may introduce rules to restrict access to the small business tax rate, perhaps following Quebec’s lead and requiring a minimum of three employees to gain access to the small business deduction (starting in 2017). Others worried that the government may restrict the ability of professionals to income split with a spouse/partner or adult children, perhaps by imposing a version of the “kiddie tax” that currently applies to private company dividends payable to minor children, by taxing them at the highest marginal rate in the spouse’s or kids’ hands.