The CMA has been a longtime advocate of tax fairness for physicians and other medical professionals. In the 1950s, when physicians didn’t have access to employer-sponsored registered pension plans, we lobbied the government for a way physicians and other Canadians could contribute to their retirements — leading to the creation of the registered retirement savings plan (RRSP) in 1957.
Today, three-quarters of Canadian physicians own and operate a private corporation, usually in the form of a clinic or family practice. Physicians hire employees, pay rent, and purchase equipment in order to practise medicine. As small business owners, many physicians do not have access to employer benefits or pensions. Physicians depend on a fair tax environment to be able to continue to invest in their practice, care for patients and save for retirement.
This is why the CMA took swift action in 2017 when the government announced plans to change Canada’s small business taxation framework. Through a sustained advocacy campaign, we helped the government understand the negative consequences of its proposed changes on physicians’ ability to operate a viable medical practice — and the impact that would have on patient care.
Thanks to a mobilization campaign that saw more than 11,000 physicians contact their local MP – and coordinated campaign with other small business owners – the government amended its proposal in Budget 2018 to adopt a more nuanced, less restrictive approach to small business taxation.
of Canadian physicians own and operate a private corporation.
in total GDP supported by physicians’ offices in 2016 accounting for 1.6% of Canada’s GDP.
of practising physicians would consider relocating to another country if tax benefits of incorporation were eliminated.
of medical residents would avoid independent practice entirely if tax benefits of incorporation were eliminated.