AMA update on taxation proposals for private corporations

August 17, 2017

Dear Member:

I am writing to update you on Alberta Medical Association (AMA) activity regarding the proposed federal tax changes to private corporations. (This includes not only physician professional corporations, but also holding/investment companies.) Many of you have taken time to let me know about your personal concerns and provincial/territorial medical associations (PTMAs) across the country are hearing similar messages from your colleagues in those jurisdictions.

The Canadian Medical Association (CMA) is leading the national response to the federal consultation on the tax changes. They are consulting with MD Financial Management and other experts, reaching out to other professions and preparing to develop a formal submission.

How you can help

If you are concerned about the proposed changes, then please make your voice heard. CMA continues to encourage members to write to their Members of Parliament, to meet with them, and to call their offices. Well over 2,600 letters have been sent through CMA’s letter-writing tool. This is a good start, but we hope many more physicians will also write to share your concerns about these tax changes.

The CMA has been sending updates and resources. For your convenience, here is a link to their easy-to-use letter-writing tool.

If you would like some facts and messages regarding the potential changes, here are a CMA fact sheet and also a blog posting from MD Financial Management. You may wish to share these items with others in your personal networks. If you are on Twitter, please use the hashtag #TaxFairness.

• CMA fact sheet
• MD Financial Management blog

What the AMA is doing

In addition to working closely with CMA and the other PTMAs, the AMA has also been talking with the provincial government to express concerns. I have spoken personally with the Minister of Health and she expressed interest in learning more about the possible implications for physicians, individual Albertans and the health care system. As a result, earlier this week there was a meeting between staff from AMA, government (Alberta Health and Treasury Board & Finance) and Alberta Health Services. Discussion occurred about the information that could best illustrate the issue. That might include individual case studies, as well as demonstrations of how professional corporations support organizational structures that are important to the health care system. Once we have a better idea of the information requirements, we may reach out to individuals to see if they would be interested in providing information for this review. I anticipate also working with MD Financial Management to take advantage of their expertise.

We appreciate the government’s willingness to listen. I will keep the profession informed.

Yours truly,

Padraic E. Carr, BMedSc, MD, FRCPC, DABPN
President