the sprinkling thing was never legal..just how to prove junior did  not work at the company ...however many do , as well as  spouses ...then there is the part about passive investments ....this is pretty draconian ... after 30 years my older bother is about retire , so he was planning to reduce his business activities , sell off his property  , hold a mortgage and live off the income   stream ...suddenly he is being called a criminal ....his corporation ends up  acting pretty much like a  RRSP  you pay tax when you pull income out ...the reason the dividend tax credit is there is because the corp  all ready paid tax on the  income once  , so  the stock owner pays at  a reduced rate ... TAX GRAB  is a pretty accurate label for this  new law