An NDP member of Parliament from Quebec has proposed amendments to the Income Tax Act that would ease the tax burden on farmers transferring their businesses to the next generation.
The Canadian Federation of Agriculture (CFA) says right now, specific tax rules pose disincentives to keep farms in the family, as it can often be less costly to sell the farm to an outside buyer.
CFA president Ron Bonnett says the issue was identified several years ago, but hasn't been addressed until now, with the tabling of the private member's bill.
"I think what we need now is for all parties to get onside and support (Bill C-274). From some of the conversations we've had, it likely shouldn't be a problem getting moral support," Bonnett says. "With any of these issues, it's obviously the number-crunching guys you've got to get onside in finance. I think if we can get finance onside, then I think it's something that would be a good fix to help address some of the issues that are out there with respect to succession planning."
Source : Steinbachonline