Ottawa – The Canadian Federation of Independent Business (CFIB) commends the federal government for last week’s announcement that it will not move forward with measures relating to the conversion of income into capital gains.
“We are very pleased that the government has listened to concerns of business owners and has stepped back from this element of their new tax plan,” said Dan Kelly, President of CFIB. “These rules would have made it more costly for small business owners — including farmers and fishers — to sell or transfer their business to their children.”
In the past, CFIB has supported two private members’ bills — from NDP MP Guy Caron and Liberal MP Emmanuel Dubourg — which proposed amendments to a nuance in the Income Tax Act which currently makes it easier to sell a family business to a third party than to a member of the family.
“We stand ready to work with the government on finding solutions to ensure that intergenerational transfers of small businesses are easier and less costly, while, at the same time, maintaining the integrity of the tax system,” added Kelly.
Given the complexity of all of the federal government’s revised tax proposals, CFIB will work with tax professionals to review the whole package, once all details have been announced, and provide an overall assessment on the net impact for Canada’s small business owners.
CFIB is Canada’s largest association of small and medium-sized businesses, with 109,000 members across every sector and region.