Ottawa is looking at changing the tax provisions for small businesses, which has drawn criticism from people across the country.
The federal government’s plan will close tax provisions it calls an unfair advantage for wealthy small business owners. That includes restricting income sprinkling, where incorporated business owners share income to family members in lower tax brackets, limit passive investments and change impacts capital gains.
Many Canadians, including farmers in Sask., are worried about the negative impact the changes will have on their businesses and farms.
“The criticisms and the concerns are taken very seriously,” Federal minister Ralph Goodale said. “The objective here is to have a fair tax system that treats everyone at every income level in an appropriate fashion.”
Goodale said the tax changes are meant to support growth, economic development and innovation.
“The minister of finance and the Prime Minister have said that the objectives are clear, to support growth, to support real job growth, to support real job creation, expansions in the economy and to support the ability of business enterprises of all kinds.”
He said the goal is to also create fairness for all tax payers.
“There are some privileges within the tax system, that have existed for a great many years perfectly legal in the system (and have) been established by the statutes of Canada, that over time have been more readily available to some and less readily available for others.”
According to a recent Mainstreet poll, a majority of Canadians agree tax loopholes are a problem.
The government is in the middle of public consultation about that changes and that will run until October 2.