The Canadian Federation of Independent Business (CFIB) says it commends the federal government for its announcement made Oct. 19 that it will not move forward with proposed measures relating to the conversion of income into capital gains.
"We are very pleased that the government has listened to concerns of business owners and has stepped back from this element of their new tax plan," stated Dan Kelly, President of CFIB in an Oct. 19 announcement. "These rules would have made it more costly for small business owners, including farmers and fishers, to sell or transfer their business to their children."
Passive income proposals
In an announcement issued Oct. 18, the CFIB stated that it is pleased that the federal government has announced “positive changes” to its passive income rules proposal, but warned that “the amendments may not be sufficient to meet the needs of many small firms working hard to become medium-sized.”
The revised proposal, announced by Finance Minister Bill Morneau Oct. 18, allows small businesses a $50,000 annual threshold on passive investment income.
" Create more opportunities "
" While the $50,000 annual threshold will help small firms that remain small, it may be too low for small firms saving to grow and create more opportunities. Canada has a dearth of medium-sized businesses and the size of the threshold may not be enough to help businesses looking to get to the next level," Kelly stated.