for now yes, but it would have to pass the reasonableness test after the Oct 2 consultation process re corps./holding companies likely gets enacted in Jan 2018. If the government decides to follow through also with the passive income investment side of this coin, they will be highly taxed as it exists now in proposals and they may need to look at whether having the holding co./incorporated assets is going to be financially worth it.  Its the talk of the small business world across Canada now and this family may unfortunately be affected.