Clarification on Bill C-208 provides much needed certainty for small businesses

@ South Asia Journal
On July 19, 2021, The Canadian Chamber of Commerce’s President and CEO, Perrin Beatty, issued the following statement on today’s clarification from the government on the taxation of intergenerational transfers of small business shares:
“Today’s clarification from Finance Minister Freeland regarding Bill C-208 provides much needed certainty for small businesses by making clear the Bill is now part of the Income Tax Act. The unfair taxation of intergenerational transfers meant that until Bill C-208, it was more difficult and made less financial sense for small business owners to sell their company to their children and grandchildren versus a complete stranger. Small businesses make up 98% of all companies in Canada.
We commend the government of Canada and Parliamentarians from across party lines, including MPs Larry Maguire and Wayne Easter, for not only seeing that C-208 passed through Parliament, but also addressing the issue as soon as possible.
As we make our way from economic recovery to growth, it will be important for small businesses to know that they are being supported. Today’s announcement removes the legislative limbo facing small businesses, which will help facilitate succession planning and help contribute to the successful longevity of Canadian companies.
We look forward to working with the government as they consult with the business community on future amendments to the Income Tax Act and urge that any future changes to intergenerational transfers be closely studied in Parliament.”
About the Canadian Chamber of Commerce – Because Business Matters
The Canadian Chamber of Commerce helps build the businesses that support our families, our communities and our country. We do this by influencing government policy, by providing essential business services and by connecting businesses to information they can use, to opportunities for growth and to a network of local chambers, businesses, decision-makers and peers from across the country, in every sector of the economy and at all levels of government, as well as internationally. We are unapologetic in our support for business and the vital role it plays in building and sustaining our great nation.

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