News

Finance Department faces grilling by MPs over tax rules in sale of family businesses

Finance Department faces grilling by MPs over tax rules in sale of family businesses
Politics
OTTAWA -- Parliament s legal expert says the Liberal government waded into uncharted territory when it decided to delay enacting tax rule changes on the sale of small businesses between family members.

A Conservative private member s bill passed in late June rewrote part of the Income Tax Act so business owners could pass on companies to their children or relatives at the same tax rate as if they were selling to a stranger.

Parliamentary law clerk Philippe Dufresne tells the House of Commons finance committee today that the bill officially became law when it received royal assent.

At the time, the Finance Department said the government would bring forward legislation to clarity that the changes would apply starting Jan. 1, 2022, because there was no coming-into-force date written into the bill.

Dufresne says that was a surprising move and one unseen in modern history.

Hours before today s committee meeting, Finance Minister Chrystia Freeland reversed position, but added the government planned its own amendments to close loopholes that could help people avoid paying taxes.
Read more on CTVnews
News Topics :
Similar Articles :
Politics
OTTAWA A parliamentary committee will hold a rare summer meeting next week about when Ottawa plans to change tax rules on the sale of small businesses...
Politics
OTTAWA The Opposition Conservatives are asking the auditor general to probe the Finance Department s handling of tax changes that left small business owners and family farmers...
Top Stories
Finance Department officials admit they are struggling to find a way to address concerns about the intergenerational transfer of family businesses and are hoping to get inspiration from suggestions that...
Sports
Canada’s small business lobby is outraged the Department of Finance is delaying a new law that allows small business owners to pass their businesses on to their children without triggering...
Top Stories
Federal tax revenues from new income sprinkling rules for small businesses could be about twice as much as Finance Department projections, states a new report from Parliamentary Budget Officer Jean Denis Fréchette....