After multiple witnesses and a thorough study of Bill C-208, An Act to amend the Income Tax Act (transfer of small business or family farm or fishing corporation), Brandon-Souris MP Larry Maguire’s legislation passed a key hurdle with the Standing Committee on Finance voting in favour of the legislation, which has now been sent back to Parliament for the final stages of debate.
The legislation is squarely focused on eliminating the tax rates that families must pay when they sell their small business or farm to their immediate family, rather than a stranger. As it stands, owners must choose between a larger retirement fund by selling to a stranger and a smaller one by selling to a family member.
“In the last Parliament, I spoke out about how the current tax rules are unfair, and I vowed to fix it,” said Maguire. “I introduced this legislation because it’s unacceptable that it’s more financially advantageous for a parent to sell their farm or small business to an absolute stranger than it is to their own son, daughter or grandchild.”
Scott Ross, from the Canadian Federation of Agriculture, appeared at the Finance Committee as an expert witness and said there are thousands of farms across Canada that will be impacted by this legislation.
"The transfer of each one of these businesses, were they to stay in the family, would be disadvantaged and face this undue tax burden,” commented Ross.
Maguire’s legislation has now been sent back to Parliament for Third Reading and if passed, C-208 will be sent to the Senate as the last stage before becoming law.
Click here to see more...