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Depending on your province of residence, you may be subject to tax at a rate of 50% or higher when your income exceeds $200,000. This article highlights a non-exhaustive list of tax minimization strategies to consider with your professional advisor. The use of these strategies will vary based on personal circumstance. As such it is crucial to check with your qualified tax advisor prior to implementing any of these strategies. The federal government has proposed changes which target private corporations. Generally, effective for 2018 and later taxation years, the government has proposed to limit income splitting to family members receiving “reasonable” compensation from a private corporation. The proposed measures extend the tax on split income rules (often known as “kiddie tax”) to adults. The government also intends to eliminate the tax advantage of investing undistributed earnings from an active business in a private corporation. Details of this proposed measure will be released in draft legislation as part of the 2018 federal budget. If enacted, this measure may result in a disincentive for investing passively within a corporation. The strategies discussed in this article may be affected by the proposed measures. If you are an owner of a private corporation, you should consider the potential impact of the proposed measures and discuss the implications with your qualified tax advisor.