If the person you appoint as your Attorney (your representative) under a Power of Attorney (POA) has a corporation of their own, their status as your Attorney can cause their corporation to be “associated” with your corporation, whether or not your Attorney has begun to act under the POA. This may reduce access to the low tax rate that applies to business income under the $500,000 “small business limit”.

Federal Budget 2022 has a couple of things relevant to family owned businesses and farms. One is an expansion of access to the low “small business deduction” tax rate on business and farm income of private corporations. Another is the announcement of a consultation process with Canadians before changes to the new “Bill C-208” rules (which are already law) are implemented.