A new federal tax proposal was announced on 18th of July 2017 by the Finance Minister and it could have a chance of uncertain consequences for small businesses and enterprises (SMEs). The Canadian Federation of Independent Business (CFIB) has increased its concerns regarding potential tax changes. The Government thinks that some changes are being used to gain unfair tax facilities like the transforming of a private corporation’s income into capital gains, the passive investments holding in a corporation and an intention of income scattering among family members.