The consultation period for the July 18, 2017 tax proposals ended on October 2, 2017.
In the course of the consultations, over 21,000 written submissions were received by the Government.
On October 3, 2017, the Department of Finance issued a Press Release acknowledging the public's concerns regarding the tax proposals.
In the Press Release, the Department of Finance stated:
"The Government has listened to small business owners, professionals and experts during the consultation on tax planning using private corporations, and will act on what it has heard....
Canadians' views are being carefully considered, and a detailed review of submissions received during the consultation period is being undertaken.
The Government will base its next steps on the following key principles. We will:
1. Support small businesses and their contributions to our communities and our economy.
2. Keep taxes low for small businesses, and support owners to actively invest in their growth, create jobs, strengthen entrepreneurship and grow our economy.
3. Avoid creating unnecessary red tape for hard-working small businesses.
4. Recognize the importance of maintaining family farms, and work with Canadians to ensure we don't affect the transfer of a family business to the next generation.
5. Conduct a gender-based analysis on finalized proposals, to ensure any changes to the tax system promote gender equity. About 83 per cent of passive investment income is earned by Canadian-controlled private corporation (CCPC) owners making more than $250,000. About 70 per cent of these individuals are men."
This may mean that the Government will moderate the scope and complexity of the tax proposals.
Unfortunately, there is no commitment from the Department of Finance in regards to the timing for the release of new tax proposals. As such, there remains considerable uncertainty as to what tax planning should be undertaken in 2017 before any new rules come into force.