Morneau Claws Back Tax Proposal After Outcry, Hints at Revenue

Canada’s Finance Minister announced the latest amendment to controversial tax proposals, saying the government will add an income threshold for a new levy on so-called “passive income” of private corporations.

Bill Morneau announced the change Wednesday in New Brunswick, saying a new tax on passive income investments from within so-called Canadian Controlled Private Corporations will only apply to earnings above C$50,000 ($42,000) a year. An example of passive income within a CCPC would be a person investing for retirement, rather than their active business, within a professional corporation.