Tag: Perrin Beatty

Coalition welcomes Senate recommendations, remains concerned with income sprinkling rules

New draft legislation on income sprinkling still raises concerns, says business coalition opposing tax changes

The legislation on income sprinkling released by Finance Minister Bill Morneau, while a step towards clarity, still represents an administrative and financial burden for a number of small businesses and the families that own them. 

The Coalition for Small Business Tax Fairness, a unified voice of over 74 organizations representing hundreds of thousands of business owners across the country, remains concerned that the new rules will cause business owners to have to cut through burdensome interpretative red tape in their efforts to prove that they or family members belong in one of the categories that would exempt them from the new sprinking rules. The coalition continues to urge government to create a blanket exemption for spouses.

“The measures announced by Min. Morneau leave many small business owners scratching their heads, especially if they will have to deal with  the Canada Revenue Agency interpretation of reasonableness,” said the Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “Although there has been some improvement, these are not measures to be rushed. This situation highlights the need for an in-depth overhaul of our tax system, in order to make it more competitive.”

“The measures announced are slated to come into force in two weeks. That’s far from enough time for businesses to adapt,” said Dan Kelly, President of the Canadian Federation of Independent Business. “We continue to urge the government to slow down, and to listen to the recommendations from the Senate Committee on National Finance.”

The Senate Standing Committee on National Finance issued a report that recommends the government withdraw the proposed changes to the taxation of private corporations in Canada, or barring that, to push back their application to 2019. The Senate Committee is also issuing a recommendation to proceed with an in-depth review of the country’s tax system.

Given the complexity of these proposals, more time is needed to ensure that these changes can be implemented and do not harm small businesses, the backbone of the Canadian economy. The coalition stands ready to work with the government to find solutions that won’t adversely affect small business’ ability to grow, innovate and create jobs.

The Coalition for Small Business Tax Fairness is encouraging business owners and other concerned Canadians to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media. For the full list of Coalition members, please visit smallbiztaxfairness.ca.  


Oakville Chamber and Canadian Chamber welcome revised tax reforms and lower small business tax rate, but remain concerned  

The Oakville Chamber of Commerce and Canadian Chamber of Commerce welcome the government’s plans to revise its proposed tax reforms and to reduce the small business tax rate as a result of the comments and concerns expressed through the national #ProtectGrowth campaign and in consultations.

“Oakville Chamber members are extremely concerned with the proposed changes by the federal government.  On behalf of our members the Chamber met with our local MPs Pam Damoff, MP Oakville North Burlington and John Oliver, MP Oakville.  We trust that our voices have been heard and that our local representatives will continue to advocate on behalf of their community on these critical changes that will impact Oakville businesses and the economy” said John Sawyer, President, Oakville Chamber of Commerce. 

As Canadians celebrate Small Business Week, Chamber representatives congratulate the thousands of businesspeople who joined the mobilization and made their voices heard on this important issue affecting Canadian workers and employers.

The Oakville Chamber also noted the Minister’s call for further input from Canadian businesses, and intends to continue providing a voice to ensure the tax system is simpler and less of a burden on Canada’s competitiveness.

“It is always more productive when government and business work together. We can only hope the government will listen as we provide advice on those areas where more remains to be done, and that they will propose concrete data to back up their claims. The Canadian Chamber will be working with the Oakville Chamber and other Chambers across the country for suggestions on reforms that can improve the competitiveness of Canada’s tax system. Lowering the small business tax rate is one such measure, but there is still much room for improvement,” Mr. Beatty said.  “We must ensure that Canada, and with it Oakville, remain attractive places to do business. Although there is a great deal of work to be done, today’s announcement is a positive first step, but we expect more and we will be vigilant on the next steps,” he concluded.