Many physicians were nervous about how their professional corporations would fate when the 2016 federal budget was unveiled.
But incorporated doctors were, overall, happy to see that what they most feared — losing a small business tax deduction — didn’t happen. There were also no changes to income splitting with family members — another tax-planning tool that can be helpful to physicians.
However, the government has frozen the small-business tax rate. According to the Medical Post, here’s what that means for physicians:
The tax rate for businesses earning $500,000 or less will be set at 10.5% for the foreseeable future. While this is still lower than the 15% corporate tax rate larger businesses incur, it marks a departure from legislation that was enacted by the Conservative government to eventually lower the rate to 9% over the next three years. Ultimately, this means that doctors with professional corporations earning $500,000 or less will now be paying more taxes in the next few years than they would have if the rate was lowered.
Continue reading in the Medical Post to see which other changes may affect physicians with professional corporations …
Having four licensing colleges in Atlantic Canada with less than two million people makes absolutely no sense. You only have to look south of the border and around the world to see we really only need one licencing college for all of Canada.
If anything, it is a major road block for recruitment. It takes a minimum of 2-4 months for a fully-licensed Canadian-trained physician to apply and get licensed. At least an Atlantic Canadian licence would allow physicians the freedom to move and pick up extra work in neighbouring provinces.
CanAm has many clients and physicians who are extremely frustrated with the lack of mobility. Physicians can’t afford to hold multiple licences. The real issue is that no college wants to give up their power. Recruitment has absolutely nothing to do with it.
There haven’t been formal talks about regulating physicians through an Atlantic body, but Dr. Cyril Moyse — registrar with the PEI College of Physicians and Surgeons — says a joint college would be “really difficult,” particularly for PEI doctors.
Former health minister Doug Currie proposed the idea of a joint college and said it made sense in terms of licensing consistency.
But Moyse thinks a regional college would be less flexible — with less political access. It could also make it harder for PEI patients to file complaints since the office would most likely not be located on the island.
Current health minister Robert Henderson says he thinks a regional regulating body makes sense but the decision is up to the colleges.
H/T The Guardian
The decade-old right of Quebec doctors to incorporate is being called into question by opposition politicians. And the issue is being raised on the eve of next week’s federal budget, in which the Liberals may introduce changes to the tax benefits of professional corporations across Canada.
Last week, all three opposition parties in Quebec called for a public debate over the impact that the incorporation of doctors and dentists was having on the public purse. According to these parties, the income tax savings generated by the estimated 10,000 Quebec physicians (roughly half of all doctors in the province) who have become incorporated since 2001 deprives the state of $150 million a year.
In his Medical Post piece, Mark Cardwell describes this as “mean-spirited politics” and “sectarianism,” adding that it’s “a disgrace to propose it.”
Continue reading in The Medical Post …