Toronto, June 17, 2021 – The Senate must vote to pass Bill C-208 before its current session closes for the summer next week, says the Canadian Federation of Independent Business (CFIB). The Bill would finally amend the unfair tax rules around the transfer of small businesses, farms and fishing corporations to family members.
“CFIB has been calling for this amendment to the tax act for years. Nearly half of business owners who are exiting their business in the next few years would like their children to take it over,” said Dan Kelly, President at CFIB. “This will have major implications for the Canadian economy, as 72 per cent of business owners plan to exit their business by 2028, and many are relying on the sale of their business to finance their retirement. This critical fix to the tax act has already been delayed by two days. The vote must be held and Bill C-208 must pass without amendments.”
Up until now, the sale of a business to family members has been taxed differently than a sale to an unrelated third party, penalizing entrepreneurs for keeping the business in the family. If passed, Bill C-208 will change that by amending the tax act so that most intergenerational transfers of businesses will be treated more fairly and will now get the same tax treatment as if they sold to a third party.
“The pandemic has created a lot of uncertainty for small business owners, with many changing their retirement plans or dipping into their retirement savings to finance their business,” added Kelly. “Once Bill C-208 receives royal assent and comes into force it will help to restore some certainty for business owners and their families by allowing them to better plan for their future and that of their business.”
For media inquiries or interviews, please contact:
Milena Stanoeva, CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 95,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.