Joint Committee makes submissions on the draft small business deduction rules

The Joint Committee has made various submissions to Finance respecting the proposed small business deduction rules including respecting potential pitfalls and deficiencies regarding the assignment of the business limit among associated corporations, the CRA discretion to add an amount to specified corporate income, the absence of a de minimis safe harbour in the designated member definition and the zeroing (rather than limiting) of specified partnership income where a partnership earns some non-arm’s length income. and inappropriate inflexibility in the specified partnership business limit definition.

The Joint Committee also submitted that proposed life insurance policy amendments should not have retroactive effect to transfers of policies that were undertaken on a non-arm’s length basis prior to March 22, 2016.

25 August 2016 Joint Committee submission on small business deduction and life insurance policy transfers.