text: The derivation of the 50 per cent is 20 per cent when you earn the income and 30 per cent when you pay the dividend to take the cash personally.  Before the changes you could use a section 84.1 "pipeline" to eliminate the dividend and instead pay 25 per cent capital gains tax on the shares over the CGD limit.  This is being eliminated, pushing the overall tax rate to over 70 per cent.   As a kicker, life insurance proceeds for the first time become taxable, which is another double whammy because the premiums were never deductible.
  
  Get up to speed:
  
  https://beta.theglobeandmail.com/news/politics/draft-tax-changes-put-families-partners-of-deceased-business-owners-in-legal-limbo-experts/article36139857/