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Product Type: Course
CLE-TV: 2016 Federal Budget—Changes to the Small Business Deduction

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Will these changes affect your law practice or the practices of your professional service clients?

"Last Kick at the Can" Rebroadcasts
1. Thursday, December 8, 2016; 9:30 am – 11:30 am
2. Wednesday, December 14, 2016; 9:30 am – 11:30 am

(Original course: Wednesday, April 20, 2016)

Who should attend: Lawyers who practice through a corporate structure alone or in groups; NOTE: no changes for incorporated lawyers who are sole practitioners.

Learning level: All levels

The March 2016 Federal Budget contains proposed amendments that will prevent law corporations that practice directly or indirectly through partnerships or central law corporations from using strategies to increase their entitlement to the 13.5% preferential tax rate applicable to active business income. Instead the 26% corporate tax rate will apply to most such law corporations generally beginning January 1, 2017.

This course will cover:

  • short history of the legislation and the events that led to this change
  • no change for incorporated lawyers who are sole practitioners
  • importance of the small business deduction and “specified partnership income”
  • the new integration dynamics
  • how:
    • central service corporations
    • partner-owned “side-car” law corporations
    • partnerco/serviceco stacked law corporations increased the entitlement of law corporations to the small business deduction
  • how the 2016 Federal Budget impacts these structures
  • how the transitional rules work
  • structures that continue to work or may continue to work
    • sole practitioners in true cost-sharing structures
    • certain associate counsel structures
    • partner incorporations to avoid adverse provincial tax allocations
  • problems associated with partnerships converting to a true cost-sharing structure
  • other strategies

These changes will not affect most law corporations practicing as sole practitioners outside of cost-sharing arrangements or sole practitioners practicing independently of each other through cost-sharing arrangements

Law Society of BC CPD Hours: 2 hours (a minimum of 1 hour will involve aspects of professional responsibility and ethics, client care and relations, and/or practice management).

Course Chair/Presenter
David G. Thompson  Thorsteinssons LLP, Vancouver

David Christian — Thorsteinssons LLP, Vancouver


"Last Kick at the Can" Rebroadcast: $200

Registration includes an electronic copy of the course materials.

Webinar Archive: This course will be added to the Webinar Archive. See below to subscribe.

Unable to attend without financial support? To learn more about CLEBC's Bursary Program click here and for our Easy Pay Plan click here.

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CLEBC Program Lawyer
Raymond Lee

This course has no current sessions.

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