On the same day that the Minister of Finance, Bill Morneau, clarified the federal government's proposals to limit "income sprinkling" as a way for high-income owners of private companies to reduce their taxes, the Senate Finance Committee released its report recommending that all the tax changes should be scrapped. Instead, the Senate Committee recommended the government of Canada undertake an independent and comprehensive review of the tax system with the purpose of "reducing complexity, ensuring economic competitiveness and enhancing overall fairness."
The last time Canada had such a comprehensive review was the Carter Royal Commission on Taxation, which reported in 1966, with many but not all of its recommendations finally implemented in legislation in 1972. This process took a decade from the start of the Royal Commission. The Senate Committee's proposal, if taken seriously, looks very much like the proverbial "kicking the can down the road" – a massive delaying tactic.
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