Ottawa – As the country kicks off Small Business Week 2017, the Canadian Federation of Independent Business (CFIB) welcomes the federal government’s decision to reinstate its promise to reduce the small business corporate tax rate to 9 per cent.
“I am pleased to see the government make good on its commitment to lower the small business rate by 2019,” said CFIB president Dan Kelly. “This decision will pump hundreds of millions of dollars back into the small business community, helping them create more jobs and grow the economy.”
“Still, the changes to rules allowing business owners to share income with their family members remain a concern for middle-income businesses.”
CFIB is pleased the government has provided some clarity on the new rules around income-sprinkling – particularly, they will no longer be moving forward with measures that limit access to the lifetime capital gains exemption. However, CFIB remains concerned that the changes may not reflect the many formal and informal ways family members participate in the business.
“We are worried that the income sprinkling changes will keep the benefits of business ownership out of the hands of many spouses who participate in more informal ways in the business – particularly women,” said Kelly.
CFIB is anxiously awaiting details on passive income rules and the treatment of capital gains related to business succession. “We will wait for details and analysis on all the changes before passing judgment on the entire package,” added Kelly.
“As Small Business Week begins, I am heartened by the outpouring of support for small businesses over the past three months. CFIB will be providing direct feedback to government on the full package of changes in the weeks ahead.”
CFIB is Canada’s largest association of small and medium-sized businesses, with 109,000 members across every sector and region.