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CMA and MD mobilizing on incorporation issue

As you may be aware, the federal government has indicated it will pursue changes to the small business tax rate and framework governing Canadian-Controlled Private Corporations.

As the majority of Canadian physicians are “self-employed” − only 10% are on salary – with responsibilities such as pay and benefits for employees, running the business of their practice and providing for their own pension and health benefits, any changes to incorporation are of keen interest to physicians.

The Canadian Medical Association (CMA) and MD Financial Management (MD) have ramped up activity on the issue to ensure members and clients are informed and have the information they need on this issue as it develops.

The CMA has initiated outreach with government decision-makers to seek clarity on the potential changes. Most importantly, the CMA is raising awareness of how potential changes to the incorporation framework may affect physicians, their practices and access to health services for Canadians.

As part of its advocacy approach, in collaboration with provincial/territorial medical associations, the CMA is encouraging members to raise the issue with their local Member of Parliament through the MD-MP Contact Program.

To support its advocacy efforts and ensure the correct information is being conveyed, the CMA surveyed members on this issue, including the potential impact of these changes on physicians. Over 2,200 members responded with their input.

Looking ahead, the CMA will highlight this issue as part of its pre-budget consultation submission to the government in early February.

The CMA and MD are committed to keeping members and clients up-to-date on this important issue. If you have any questions about the CMA’s advocacy efforts on this issue, please contact yourvoice@cma.ca.

To discuss how the government’s proposed changes may affect your financial situation, we encourage you to meet with an advisor at MD Financial Management.

Forward any comments about this article to: cmanews@cma.ca.