CFIB concerned about the draft law of the minister Morneau

News 19 July, 2017
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    The minister of Finance, Bill Morneau

    QMI agency

    Wednesday, 19 July 2017 11:36

    Wednesday, 19 July 2017 11:36

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    MONTREAL – The canadian Federation of independent business (CFIB) is concerned that owners of small and medium-sized enterprises (SMES) may not be able to share their income with their family members because of a bill in Ottawa to reduce the tax loopholes.

    The CFIB, which argues that 70 % of its members, the owner of SMES, their employment, their family members, expressed concern “that the impact of tax changes projected to be even more important and more harmful than expected,” she wrote in a press release.

    The canadian minister of Finance, Bill Morneau, announced on Tuesday that he wants to abolish tax loopholes used by wealthy professionals such as doctors and lawyers to pay less tax.

    “This tax reform is likely to create uncertainty at a time when SMES need their governments to take no heed,” said Simon Gaudreault, director of economic affairs at the CFIB.

    “Already the United States require a revision of the NAFTA, and that the payroll taxes will increase for years, the last thing that they want the heads of SMES, it is the uncertainty in terms of tax planning, he added. Remember that the business owners have been disappointed that the government is back on its promise to reduce to 9 % the tax rate of SMES, because this limits their ability to reinvest their tax savings in their business.”

    The CFIB points out, however, his satisfaction at the idea that Ottawa, which facilitates the transfer of businesses to family members of the owners.

    “According to the tax rules currently in force, it costs a lot less to the heads of SMES to sell their business to a stranger than to their children, which is not normal. It is therefore good news that the government is willing to change things,” said Mr. Gaudreault, who said that his organization, representing some 109 000 members, is doing everything in its power to discourage the establishment of businesses-screens in the country.

    “However, it should be remembered that the vast majority of canadian SMES are managed by good taxpayers, law-abiding and who are, for the most in the middle class,” said Simon Gaudreault.