September 6, 2017
ISSUE ALERT: Federal Tax on Private Corporations
a Risk to BC Dental Practices
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ACT NOW: The Federal Government Needs to Hear Your Voice

The proposed changes to the tax treatment of private corporations will have an immediate and long term financial impact on our profession, our families and our patients. If enacted, the proposed changes will limit our ability to:
  1. expand our practices and staff to meet our patients’ needs;
  2. upgrade our equipment as technology changes to improve treatment outcomes;
  3. plan for life’s major events such as maternity/parental leave, disability and retirement;
  4. create a buffer during economic downturns or practice interruptions.

The federal Finance Minister, Bill Morneau, initiated a consultation to hear Canadians’ views on these changes in regards to income sprinkling, conversion of income to capital gains and passive income held in the corporation (see the July 21 Issue Alert). The closing date for submissions is October 2.

The changes are intended to address the issue of tax equity but as many of you know, the difference between a business owner and a salaried employee is like comparing apples to oranges. Employees have access to benefits ranging from sick pay and extended health benefits to maternity/parental leave, none of which is available to an owner unless they pay for it. Nor does this comparison recognize the risk associated with running a small business, something employees do not face. Every dentist owner has invested both in dental education and training, as well as the cost of starting the practice. It is difficult to find an employee group that faces the same level of risk.

What can you do?

  1. Write your MP: Send a letter directly at or use your BCDA website login to access our online MP Letter Campaign tool at bcdental.org. There are four template options: Young Female Dentist Considering a Family; New/Recent Graduate; Mid-Career Dentist; and Nearing Retirement. These can be edited to reflect your own comments.
  2. Sign our ePetition now at bcdental.org! Use your BCDA website login to add your name and practice location (e.g. Burnaby) to our petition that will be sent to all BC MPs.
  3. Call or meet with your MP: Discuss the issue directly with your MP. Help them understand the personal impact the tax changes will have on your ability to care for the people in their riding. BCDA has already sent a discussion paper (PDF) to each BC MP regarding the impact of the proposed changes.
  4. Read the upcoming fall 2017 issue of the bridge for detailed information on the impact of the tax changes on dental practices and tips on how to work with your accountant for your own financial planning.

BCDA & CDA Advocacy Plan to Oppose the Tax

  1. Analyzed the impact on how the tax will affect dentists and patient care
  2. Arrange meetings with influential BC MPs
  3. Submit responses from the BCDA & CDA to the Consultation by October 2
  4. CDA is part of the national Coalition for Small Business Tax Fairness with 34 other organizations in opposition of the tax changes
  5. CDA is meeting with staff in the Finance Ministry and Office of the Opposition to highlight dentistry's concerns
Please take action. It is up to each of us to ensure that MPs hear and understand our issues.

Sincerely,
Dr. K.K. Wan

Member Website CE@DLC Portal CE@DLC Portal
British Columbia Dental Association
400 - 1765 W 8th Avenue Vancouver, BC V6J 5C6
604 736 7202 | 1 888 396 9888
bcda@bcdental.org
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