The over 130,000 Canadian farmers and ranchers represented by the Canadian Canola Growers Association, Canadian Cattle Association and Grain Growers of Canada are calling on the Government of Canada to reverse its decision to administer the proposed capital gains inclusion rate legislation.
The coalition says that despite the fact that the Deputy Prime Minister and Minister of Finance tabled a Notice of Ways and Means Motion (NWMM) to introduce a bill entitled An Act to amend the Income Tax Act and the Income Tax Regulations, these changes are subject to parliamentary approval and should not be implemented without the express approval of Parliament.
The average age of Canadian farmers is now over 55 years old and tens of billions of dollars in farm assets are set to change hands over the next decade.
"Canadian farms continue to expand, often supporting multiple households, with more and more farms incorporating for tax and estate planning purposes. Meanwhile the cost of land and farm assets continues to rise and those looking to purchase a farm face unprecedented capital costs," the groups said in a statement.
"We continue to express opposition to the accelerated pace of implementation, the lack of consultation in the lead-up to these proposals, and the changes that undermine the policy intent of Bill C-208, particularly in terms of the continued uncertainty regarding future treatment of capital gains that adds costs, complexity, and delays for farmers trying to navigate the intergenerational transfer of farm assets. While the proposed amendments to the Lifetime Capital Gains Exemption include an increase to the limit on eligible capital gains for producers, this alone does not address the broader challenges posed by these policy changes."
The farm groups are calling on the government to not implement the NWMM and revert to the previous capital gains and inclusion rate.
Source : Pembinavalley online