Since the government announced these proposed rules, CFA has raised continued concerns with potential consequences to intergenerational farm transfers, and is pleased to see that capital gains from qualified farm property would be excluded from Tax on Split Income. CFA is also pleased to see further clarification and definition on the contributions required for both capital and labour, and looks forward to further dialogue with government officials to ensure the diverse contributions of farm family members are adequately accounted for.
“By continuing to work together we can make Canadian food a true powerhouse in terms of feeding to world’s growing population”
“This announcement provides greater clarity on Income Sprinkling and CFA looks forward to continued engagement with Finance Canada and the Canada Revenue Agency to ensure application of the rules is streamlined, clearly communicated and applied in a clear, objective fashion for all businesses,” said CFA President Ron Bonnett.
“I believe the progress we’ve seen on this front, since the initial announcement in July, shows that collaboration and communication are critical for effective policy-making. We believe these changes are important for shaping Canada’s tax policy to enable the continued success of family farms in Canada, including the next generation of young farmers,” added Bonnett.
CFA awaits draft legislation and will fully analyze the proposed changes once a bill is introduced in Parliament. CFA maintains concerns that the implementation timelines are very tight and don’t give businesses much time to adapt. Farm leaders look forward to working with Finance Canada to ensure any remaining issues are adequately addressed.
“The Canadian government has set a huge goal of increasing agriculture exports to $75 billion by 2025. We need to ensure we get policies right to meet these ambitious growth targets. By continuing to work together, we can make Canada and Canadian food a true powerhouse in terms of feeding to world’s growing population,” said Bonnett.
We look forward to continued dialogue with Finance Canada to clarify these issues, and ensure further proposals align with the government’s ambitious growth agenda for the sector.