TORONTO, May 17, 2016 /CNW/ - A new private member's bill promises to address a significant and costly flaw in Canada's succession planning rules and would save Canadian small business owners hundreds of thousands of dollars when transferring their business to a family member.
NDP MP Guy Caron's bill proposes amendments to the Income Tax Act that will ease the tax burden on business owners seeking to pass their business on to their children or grandchildren. Under the current system, it is easier to sell to a third party than it is a family member.
"Many small business owners are telling us that tax rules discourage them from passing on their firm to their children and encourage selling to a stranger," said Dan Kelly, president of the Canadian Federation of Independent Business (CFIB). "Mr. Caron's bill addresses this unfairness and will help small business owners ensure their firm remains locally owned, creating and protecting local jobs. CFIB commends Mr. Caron and the NDP for their leadership on this important policy."
Only half of small business owners have a planned succession, and of those, 76 per cent plan to exit their businesses in the next 10 years. Passing Mr. Caron's bill would be a positive step forward for Canada's small businesses. CFIB has long supported such legislation, including a Private Member's Bill introduced by Liberal MP Emmanuel Dubourg in the last Parliament.
CFIB is Canada's largest association of small- and medium-sized businesses with 109,000 members across every sector and region.
SOURCE Canadian Federation of Independent Business
For further information: To arrange an interview with Dan Kelly, please contact Ryan Mallough at 416-222-8022 or [email protected]