Further, the The Policy Objectives behind proposed regime would encourage small business the Proposed Regime owners to maximize the use of personal tax-assisted saving vehicles to accumulate savings outside the Finance Canada’s white paper (Canada 2017) business whether they are intended for business- contends that the current rules governing the tax related or personal purposes. [...] If there is no change in the investment income earned in a CCPC is refunded applicable personal tax rate through time, the RRSP to the corporation make their tax treatment and the TFSA will yield effectively the same wealth advantageous, in some cases, compared to income available for consumption, which would have been from investments in taxable personal accounts. [...] The Current and Proposed The fairness argument put forward to introduce Regime for Passive Investment the proposed regime implicitly adopts the ideal Income of a comprehensive income tax, in which all annual increments in net worth should be taxed, The objective of the proposed regime for passive as a baseline. [...] The refunds of passive income indifferent as to whether the active business income taxes are effectively paid out to the corporation is taxed first in the corporation and again when only when businesses distribute dividends to distributed as dividends, or whether the business shareholders. [...] A higher rate of return would compound the size of the gaps between the various options, but would not change the overall directions of the gaps and the main conclusions drawn from the results.