The federal government will reduce the tax rate of SMES

Photo Agence QMI, MATTHEW USHERWOOD

Raymond Filion

Sunday, 15 October 2017 22:51

UPDATE
Sunday, 15 October 2017 22:55

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OTTAWA, The Trudeau government will announce on Monday that it will reduce the tax rate on small businesses by the end of its present mandate, learned VAT News.

The minister of Finance will rise as the veil of the “adjustments” to his controversial plan for tax reform, which has raised the ire of many business people across the country since its presentation in July.

Some liberal members of parliament have also publicly criticized the proposed measures.

The elected liberals have been summoned to an extraordinary meeting of their caucus Monday morning in Ottawa, during which the minister of Finance Bill Morneau needs to make a presentation in the presence of the prime minister.

The liberal caucus meets usually on Wednesday, but in front of the grunts raised by the changes, the government feels the need to calm the game.

As well, Mr. Morneau will confirm on Monday that SMES will see their tax rate decrease by 2019 at an ad with Justin Trudeau in a restaurant in the Toronto area.

During the election campaign of 2015, the liberals had promised to reduce the tax rate on small businesses from 11% to 9%.

As to the controversial tax reform, the Trudeau government still intends to go ahead with its proposal to restrict the splitting of the business owners, but “a simpler way”, according to a government source.

“We will reduce the administrative burden and offer a test of “reasonableness”, which is more simple,” says this source, who requested anonymity.

The minister of Finance will then, in a tour of the country aimed to “reassure people” that the measures only apply to individuals who are better off and not those of the middle class, and that they will not have any impact on the transfer of a business to another generation.

If the consultation period is closed since two weeks ago, the government promised to keep listening by the filing of his bill in which the final measurement will be recorded.

Remains to be seen if the operation will appease the wrath of many physicians, farmers, business people, traders and other business owners.