Published On: Friday, 01 September 2017

Coalition for Small Business Tax Fairness Gains Momentum

Coalition for Small Business Tax Fairness Gains Momentum
“There's a reason why they are called family businesses, because of the involvement of family in all aspects of operations, both formal and informal.” — Diane J. Brisebois, President & CEO, Retail Council of Canada.

CANADA - 42 organizations from across the country have come together to form the Coalition for Small Business Tax Fairness - a unified voice to oppose the federal government’s tax proposals that would dramatically change the way incorporated small businesses are taxed in Canada.

“These proposals, while intended to target the wealthy, will hurt middle-class business owners from every sector of the economy," says Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition.

"These are shopowners, farmers, doctors, financial planners, homebuilders and trades in all sectors — the entrepreneurial families who are the backbone of the economy and responsible for the majority of the job creation in Canada. Our coming together highlights the urgency of combatting these proposals which, if legislated, would signify the biggest changes to the business tax system in decades.”

"In ten years at the Canadian Chamber, I’ve never seen an issue that has generated greater concern among our members," says Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.

"To make matters worse, allotting only 75 days for comment in the midst of the summer holidays is not a consultation, it’s a stealth attack on farmers and family businesses. The vast majority of our network’s more than 200,000 members across Canada are SMEs. They will be contacting their MPs to say that these proposals must be scrapped and replaced with measures that support Canada's entrepreneurs."

If implemented, the proposals will restrict small business owners from sharing income with family members; limit certain forms of saving in the business, making the firm more vulnerable in bad economic times and less able to innovate and grow; and change capital gains rules which could make it more difficult for business owners to transfer their business to the next generation.

The 35 business groups — on behalf of the hundreds of thousands of members they represent — have presented a letter to Finance Minister Bill Morneau asking the government to take these proposals off the table and instead meet with the business community to address any shortcomings in tax policy affecting private corporations.

Signatories of the letter include:

  • Agricultural Manufacturers of Canada, Association of Consulting Engineering Companies, Canadian Institute of Steel Construction, Canadian Pharmacists Association
    Canadian Veterinary Medical Association, Merit Canada, Western Canadian Wheat Growers Association, Advocis – Financial Advisors Association of Canada, Canadian Advanced Technology Alliance, Canadian Association of Farm Advisors, Canadian Association of Management Consultants, Canadian Association of Optometrists, Canadian Association of Radiologists, Canadian Bar Association, Canadian Cattlemen’s Association, Canadian Chamber of Commerce, Canadian Construction Association, Canadian Dental Association
    Canadian Federation of Agriculture, Canadian Federation of Independent Business, Canadian Home Builders’ Association, Canadian Horticultural Council, Canadian Institute of Financial Planners, Canadian Institute of Plumbing and Heating, Canadian Medical Association, Canadian Mortgage Brokers Association, Canadian Pork Council, Canadian Taxpayers Federation, Canadian Water Quality Association, Coalition of Ontario Doctors, Conference for Advanced Life Underwriting, Family Enterprise Xchange, Federation of Ontario Law Associations, Grain Farmers of Ontario, Grain Growers of Canada, Independent Financial Brokers of Canada, Mechanical Contractors Association of Canada, National Exempt Market Association, Ontario Association of Radiologists, Ontario Medical Association, Restaurants Canada, Retail Council of Canada.

The Coalition for Small Business Tax Fairness is encouraging those concerned about these changes to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media.