Tax Specialist Next season of STAT, hurry!

That's because I'm not always there when the brunette indulges in this, which I started a season and a half late. This gives it reserves from which it draws at a good pace. I only accompany him for the weekend. When the end credits roll, with a preview of part two, I'm the first to say, “Come on, one more!” I'm the same in front of a bowl of Peanuts. I can stuff myself with it STAT To the point of nausea, even if I don't understand half the plots. After that, I'm fine for the rest of the week.

But there, this weekend, I witnessed the entrance of the psychotic bearded man on stage, played by David La Haye: Wow! The fear of missing out on the development of an unstable personality risks pushing me towards the side of the true addict.

STATIt is also the closest emergency room to the hospital for a long time. If I trust the newspapers, the situation on the ground looks much bleaker than the Radio-Canada Daily depicts. To make the show more realistic, we had to incorporate an army of extras who cough, groan, scream, sleep on stretchers, sigh, and complain about the length of the show. Combined with the high production costs, I'm afraid it will break the rhythm.

But I have an idea to add a layer of realism at a lower cost, which would fit perfectly with Marie-André Labbe's work. I would go so far as to say that it would make it better. (Spoiler alert, because I'm convinced my suggestion will tempt the author.)

First, during the first dinner of the upcoming season at emergency physician Emmanuel St. Cyr (Suzanne Clement), the group of doctors must address the issue of increased capital gains taxes that affect, among other things, embedded professionals. It is impossible for medical professionals not to discuss the burning topic among themselves, for the real ones will finally recognize themselves in the imagination.

We could even turn it into a dramatic thread that unfolds throughout Season 3: Will they be able to avoid this tax increase, and if so, how? “Call my accountant, stat!”

In parallel with the emergency measures, a new framework will be developed at the Financial Services Company (Mustaqbal). spin off, maybe). There, a new character will appear, an intelligent tax specialist played by James Hyndman who will end the season in the bed of Emmanuel St. Cyr.

I'm carrying something big. If you never see me here again, you'll know why.

***

A problem for doctors

The new inclusion rate for calculating capital gains tax is particularly troublesome for incorporated professionals, including doctors. I challenged myself to explain to you why.

It will be a summary, because it is complex and much less exciting than STAT.

If you don't know, know that many doctors are combined. Their business income is taxed at a lower rate than they would earn directly as individuals, such as ordinary self-employed workers. I emphasize doctors, but it's the same for all embedded professionals.

Adopting such a structure is not helpful if it means taking all your income. The company is taxed for the first time, and when the professional withdraws the amounts needed to pay for his lifestyle, they are taken back by the tax authorities, as wages or dividends, at the choice of the entrepreneur. Ultimately, there are no real tax savings to be made there.

(In taxation, there is a principle called “complementarity.” This means that regardless of the route by which income moves into an individual’s pockets, the portion that the tax collector takes over should remain the same, with or without a transfer by the company and notwithstanding From the mechanisms to improve it, integration is never perfect.)

Why merge then? It is interesting that the money stays within the company to be invested. A self-employed worker who makes $500,000 a year and has a cost of living of $80,000 just needs to get what he needs. Since business income is taxed at lower rates, there is more money left over to produce investment income in the company.

But there you go, what did we learn last week? The tax will increase on capital gains by more than $250,000…for individuals! In corporations, there is no such buffer, and the increase takes effect from the first dollar of capital gain.

Emmanuel Saint Cyr's character will therefore find himself paying more taxes through his incorporation if his structure is to achieve capital gains within his “company”. I don't know if Ottawa has a mechanism to correct this strange situation.

But not too fast, that would hurt my scenario STAT!

***

In a hurry?

The question now is: Should we quickly activate our capital gains to avoid the tax increase scheduled for June 25? We must remember that the tax bill remains hidden as long as we hold the assets in which the gains accumulate.

If we rush to sell assets, we decide to advance our tax payment. This amount we pay to the government is less than the money on which we could have continued to generate returns. Unless you're really on the verge of giving up, there may be no reason to rush.

History also shows that the rate at which capital gains are included varies over time. We regret that it rose from 50% to 66.6%, but remember that it rose to 75% from 1990 to 2000, before falling to 66.6%, then to 50%.

So, nothing says he can't get back down. This is all the more reason not to rush things.

On the other hand, the upcoming increase in the inclusion rate to 66.6% raises this question: Why not 100%, like our salaries and interest income?

On what basis can this difference be justified?

If you would like to respond to this column, write to us at [email protected]. Some responses may be published in our opinions section. If you want to contact our columnist directly, you can do so at [email protected].