The Agricultural Producers Association of Saskatchewan is cautiously optimistic that the province’s farmers have been heard on the proposed federal tax changes.
This week, Finance Canada announced a series of amendments to its proposed tax
changes, regarding income sprinkling, passive investments and capital gains exemptions. If implemented, these changes would have made farm succession planning more complex and costly to pass the business onto the next generation of family members.
“The initial reforms raised some serious concerns,” said APAS President Todd Lewis.
“Thankfully, the federal government appears to have listened to our concerns and was
reminded of the value of our family farms here in Saskatchewan and the rest of the
country.”
APAS is waiting for more details and draft legislation on the remaining proposals, but
Lewis said that, overall, this week’s announcements are a step in the right direction.
“The government seems to have recognized that tax planning is critical to the viability of
family farms and that small business owners - especially farm businesses, require
savings to manage risk, fund retirement and make the investments that grow the
economy.”
Lewis also noted that he and the rest of the APAS Executive will be in Ottawa next
week, speaking to MPs, Senators and their staff about this matter during the Canadian
Federation of Agriculture's board meeting and lobby day on Parliament Hill.
APAS has been involved in an intense lobbying effort on this issue over the last number
of weeks, working with the CFA to get producers involved in the consultation. Meetings
were held with Parliamentary Secretary to the Finance Minister Joël Lightbound, and
Regina Member of Parliament, Ralph Goodale. Earlier this month, APAS provided a
submission to Finance Canada on behalf of Saskatchewan farmers, voicing serious
concerns with the tax proposals.
Source : Agricultural Producers Association of Saskatchewan