TORONTO, Oct. 16, 2017 /CNW/ - Retail Council of Canada (RCC) is responding favourably to the revised package of small business income tax measures announced today by the Government of Canada. The retail industry had been particularly concerned about the direction of several aspects of the original package, including those related to dividend distribution by family businesses and to passive investments. While understanding the thrust of the income-sprinkling provisions, RCC believed them to be overly-broad, risking negative outcomes for valid arrangements within family businesses.
"Today's announcement clarifies the intent of the government and is a far more supportable package overall," said Diane J. Brisebois, President and CEO, Retail Council of Canada. "While there are details still to be worked through in some areas, the refinement of the reasonableness test on dividend distributions is a decision we can get behind. In combination with the announcement of a track to lower the small business tax rate, today marks an important reset in the relationship between the government and retail entrepreneurs," Ms. Brisebois added.
RCC is also encouraged by what we understand will be a forthcoming clarification on passive investments that will not adversely affect our small business owners' ability to build up capital for improvements, expansion or acquisition.
"The Government has listened to small business concerns articulated over the last two months and has acted accordingly," said Karl Littler, Vice-President, Public Affairs. "We obviously had serious issues with the first iteration of the consultation but this one appears to be better targeted and responsive to the critique from stakeholders," he added.
On behalf of retail merchants in Canada, RCC looks forward to working with the Minister and Department of Finance as these announcements are developed into draft legislation.
About Retail Council of Canada
Retail is Canada's largest employer with 2.1 million Canadians working in our industry, which annually generates over $73 billion in wages and employee benefits. Core retail sales (excluding vehicles and gasoline) were $353 billion in 2016. Retail Council of Canada (RCC) members represent more than two thirds of core retail sales in the country. RCC is a not-for-profit industry-funded association and represents small, medium and large retail business in every community across the country. As the Voice of Retail™ in Canada, we proudly represent more than 45,000 storefronts in all retail formats, including department, grocery, specialty, discount, independent retailers and online merchants. www.RetailCouncil.org
SOURCE Retail Council of Canada
For further information: Karl Littler, VP Public Affairs, Retail Council of Canada, Office: 416-467-3783 I Mobile: 416-906-0040, [email protected]