More work is needed on passive investment and income splitting
Toronto, March 29, 2018 – After a careful review, the Coalition for Small Business Tax Fairness is asking finance minister Bill Morneau to take more action on the government’s proposed tax changes which continue to unfairly target small business.
A Coalition of 73 organizations representing hundreds of thousands of business owners nationwide noted the while budget measures addressed some of the concerns related to the complexity of earlier proposals on passive investments, the approach outlined in the 2018 budget will create an entirely new group of losers. CATAAlliance is a key member representing the interests of Canada’s tech sectors.
“These new proposals unfairly penalize small business owners who have spent years saving to weather downturns and make future investments in their employees and their business. Unfortunately, the new approach means many firms with existing passive investments will lose access to the lower small business tax rate on future business income,” said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB). “While we welcome some of the progress made in the recent Federal Budget, we are hearing from small business owners who are being unfairly stripped of their access to the small business tax rate and are now facing tens of thousands in higher corporate income taxes every year.”
Two major reports – the Parliamentary Budget Officer’s report on income sprinkling and the Senate report on tax changes – clearly show the new rules remain both costly and deeply confusing.
“The Federal government is missing a key opportunity to provide important tax clarity and small business owners need some assurance heading into tax season,” said Hon. Perrin Beatty, president and CEO of the Canadian Chamber of Commerce. “With more uncertainty about competitiveness facing Canadian business owners, we urge the government to commit to find common sense solutions to help businesses grow and prosper.”
In a recent letter to Minister Morneau, the Coalition is asking government to:
The Coalition for Small Business Tax Fairness is the voice of more than 70 organizations representing hundreds of thousands of business owners across the country.
Related Advocacy (CATAAlliance)
In recent weeks the CATAAlliance Team has put together a set of Three Advocacy Communiques to serve as a stimulant that will encourage Canadians to discuss and debate important issues. We want to let our governments know that they need to re-examine the role they play.
For media inquiries or interviews, please contact:
Kiara Morrissey, CFIB
John Reid, CATAAlliance