December 15, 2017
Grain Growers of Canada welcome clarification on small business tax changes
(OTTAWA) December 15, 2017 – Grain Growers of Canada (GGC) is pleased to see this week’s announcement by Finance Minister Bill Morneau of clarifications to the proposed modifications to the rules governing splitting of income for private corporations.
“Today’s grain farm relies on contributions from all family members to succeed,” said Jeff Nielsen, GGC President. “Splitting of income is a legitimate tool to compensate family members for the hard work they do throughout the year and, in fact, their lifetimes.”
The modifications that provide “off-ramps” for family run businesses like farms are a welcome recognition of the important role that family members play on grain farms across Canada. The clarity around the qualifications for labour and capital, as well as the previously announced exclusion of capital gains on qualified farm property, are an acknowledgement that the government heard from GGC and the thousands of farmers across Canada who are being impacted by these changes.
“What we’ve seen with the small business tax proposal underscores the need for government to have meaningful consultations prior to proposing new policies when unintended consequences can do more harm than good,” continued Mr. Nielsen. “Good policy comes from open, transparent dialogue and GGC looks forward to working with the government to avoid similar situations in the future.”
Grain Growers of Canada provides a strong national voice for over 50,000 active and successful grain, oilseed and pulse producers through its 13 provincial, regional and national grower groups. Our mission and mandate are to pursue a policy environment that maximizes global competitiveness and to influence federal policy on behalf of independent Canadian grain farmers and their associations.