As expected, Bill Morneau announced three new measures to crack down on tax avoidance by means of self-incorporation by high earners, many of them doctors and lawyers. While the government goes on a 75-day consultation period (to ensure that there are no unintended consequences) in order that the changes can be legislated in the autumn budget implementation bill, here’s economist Kevin Milligan explaining the problem and changes in detail here, plus his Twitter posts on the topic:
https://twitter.com/kevinmilligan/status/887347823657668608
https://twitter.com/kevinmilligan/status/887348810225143809
https://twitter.com/kevinmilligan/status/887349319413649409
https://twitter.com/kevinmilligan/status/887349919882690560
https://twitter.com/kevinmilligan/status/887350619886895104
https://twitter.com/kevinmilligan/status/887351395929661440
https://twitter.com/kevinmilligan/status/887352251777335296
https://twitter.com/kevinmilligan/status/887353356250992640
https://twitter.com/kevinmilligan/status/887354118846652416
https://twitter.com/kevinmilligan/status/887355324197330944
https://twitter.com/kevinmilligan/status/887356115033260032
https://twitter.com/kevinmilligan/status/887356608518291456
Morneau acknowledged that the changes may personally disadvantage him (though two of the three categories didn’t apply to him) – making it clear that he didn’t look into his own situation to ensure that he was being fair and not self-interested in making them.