This afternoon Bill C-208, introduced by Larry Maguire, MP for Brandon-Souris, passed third reading in the House of Commons. This legislation would allow small businesses, farm families and family fishing corporations the same tax rate when selling their operations to a family member as they would if they sold it to a third party.
Currently, when a person sells their small business to a family member, the difference between the sale price and the original purchase price is a dividend. However, if the business is sold to a non-family member, the sale is considered a capital gain. A capital gain is taxed at a much lower rate and allows the seller to use the lifetime capital gains exemption.
It was completely unacceptable that it is more financially advantageous for a parent to sell their farm or small business to an absolute stranger than it is to their own children.
It absolutely makes no sense why the Minister of Economic Development, who is responsible for Western Economic Diversification and is supported by the Special Representative for the Prairies, would vote against this legislation.
This government continually chooses partisan politics over common sense Conservative policies that put the interests of hard working Canadians first.
Despite the Minister’s vote against this legislation, it passed third reading and will now head to the Senate.
- Media Release, Office of Warren Steinley, MP
