Media statement on announcement of small business tax changes

Oct 17, 2017

“The Canadian Federation of Agriculture (CFA) welcomes today’s announcement by Prime Minister Justin Trudeau, Finance Minister Bill Morneau, and Small Business and Tourism Minister Bardish Chaggar that the 10.5% small business tax rate will drop to 10% in 2018 and 9% in 2019.

A reduced overall small business tax rate will help to drive growth in the agriculture sector and boost the competitiveness of Canadian farmers. As well, changes announced to ‘Tax Planning Using Private Corporations’ proposals are a positive sign that the government understands the concerns voiced by farm groups in recent months.

Simplifying the income sprinkling rules is a step in the right direction and farmers look forward to more clarity around tax changes. CFA is also pleased that the government will not proceed with limiting access to the Lifetime Capital Gains Exemption.
Minister Morneau has said that he’ll ensure family farm transfers aren’t affected by the tax changes and farm groups await details on how the proposals will be revised in this regard.

While today’s news resolves some uncertainty, farmers remain apprehensive about other proposed tax measures, particularly on passive investments, which are vital for managing year-over-year risks due to weather or market-related volatility. CFA has also noted concern with plans that would affect the conversion of income into capital gains.

CFA executives are in regular contact with Finance Canada officials and other government representatives, and we understand these outstanding issues will be addressed in the near future.”

Source: CFA FCA

Video: Financial Confidence: Empowering Women on the Farm

Third episode of our Connecting Women in Agriculture series, we explore the importance of building financial knowledge and confidence in women.

Author and founder of the Trauma of Money Institute, Chantel Chapman, shares her more than 20 years of financial counselling and explores how financial shame uniquely impacts women, especially in agriculture.

You’ll learn aspects of the Trauma of Money Method, Chantel’s framework that empowers women to overcome financial shame, reclaim agency and break free from financial fawning. This session offers practical tools for building confidence, setting boundaries and understanding that financial flourishing is about more than just the numbers.