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Tax Changes 'Step In Right Direction'

Published: December 16, 2017 12:44 pm ET

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Standardbred Canada, a member of the Canadian Federation of Agriculture (CFA), is pleased to see that Finance Canada has considered the feedback contributed by CFA with regard to the Tax Fairness proposals, and has proposed changes that have addressed a number of the key concerns identified by Canadian farm businesses.

Since the government announced these proposed rules, Standardbred Canada through CFA has raised continued concerns with potential consequences to intergenerational farm transfers, and is pleased to see that capital gains from qualified farm property would be excluded from Tax on Split Income. We are also pleased to see further clarification and definition on the contributions required for both capital and labour, and look forward to further dialogue with government officials to ensure the diverse contributions of farm family members are adequately accounted for.

"This announcement provides greater clarity on Income Sprinkling and, through CFA, we look forward to continued engagement with Finance Canada and the Canada Revenue Agency to ensure application of the rules is streamlined," said Standardbred Canada President and CEO Dan Gall.

"The progress we've seen on this since the initial announcement in July shows that collaboration and communication are critical for effective policy-making. We believe these changes are important for shaping Canada's tax policy to enable the continued success of family farms in Canada, including the next generation of young farmers, and thank CFA for all their efforts in making this progress," added Gall.

CFA is now awaiting draft legislation and will fully analyze the proposed changes once a bill is introduced in Parliament. CFA and Standardbred Canada maintains concerns that the implementation timelines are very tight and don't give businesses much time to adapt. Farm leaders look forward to working with Finance Canada to ensure any remaining issues are adequately addressed.

"The Canadian government has set a huge goal of increasing agriculture exports to $75 billion by 2025. We need to ensure we get policies right to meet these ambitious growth targets. By continuing to work together, we can make Canada and Canadian food a true powerhouse in terms of feeding to the world's growing population," said CFA President Ron Bonnett.

Standardbred Canada looks forward to continued dialogue through the CFA with Finance Canada to clarify these issues, and ensure further proposals align with the government's ambitious growth agenda for the sector.

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