ODA Raises Concerns with Changes to Capital Gains Tax

Proposed Tax Modifications and Their Potential Impact on Dental Practices

Overwhelmed by the Weight of New Capital Gains Tax Changes

The Ontario Dental Association (ODA) recently expressed significant concerns regarding proposed changes to the capital gains tax, as these modifications could have far-reaching implications for dental professionals across Ontario.

Key Concerns:

• Inclusion Rate Increase: The proposed changes would increase the capital gains tax inclusion rate from 50% to 66.7% for professional corporations.
• Financial Impact: This change could significantly reduce the financial returns from the sale of dental practices, particularly affecting those nearing retirement.
• Investment Deterrent: Potential buyers might be discouraged due to the reduced financial incentives, leading to decreased practice values.
• Strain on Practice Sustainability: The increased tax burden could hinder dentists’ ability to invest in their practices and maintain high-quality patient care.

Advocacy Efforts:

• Government Reconsideration: The ODA urges the federal government to reconsider the proposed changes to support the financial stability and growth of dental practices.
• Support for Healthcare Providers: Emphasizes the need for policies that enable healthcare providers to continue delivering high-quality care and support job creation in the sector.

For more detailed information, please read the full article here.