Government backs down again on proposed tax changesProposed measures which would have impeded passing down the family farm scrapped for now
Calgary, Alberta, 19 October 2017- In its third announcement of the week, the Government of Canada is backing down from yet another of its proposed tax changes. They have conceded that farming and agriculture play an important role in the Canadian economy, and that the tax system should not impede farming families from continuing their work.
Finance Minister Bill Morneau announced today that the Government will not be moving forward with measures relating to the conversion of income into capital gains. The withdrawn measure would have had the perverse effect making it more expensive to sell a family farm to a family member as compared to a unrelated person. Pulling this proposal is the right thing to do, as it runs counter to the Government’s mantra of supposed fairness.
The Government will be undertaking additional consultations in the coming year to develop new proposals, so the final chapter is not written on this story.
All clients, but especially those with businesses they are trying pass on to the next generation, should be reviewing their tax plans before the end of 2017.
To discuss how this latest concession might affect your business please contact:
Arthur V. Olson
Barrister & Solicitor
Download a PDF version of this news release here.