An arrogant affront to democracy
In the Okanagan, Similkameen and Nicola Valley's, we have many small family run farms and small business operations.
When it comes time for retirement, if a business owner decides to sell to another member of the family to pass the business along to the next generation, the difference between the sale price and the original purchase price is considered a dividend.
In the event the same family farm or small business is sold to a stranger the difference between the sale price and the original purchase price is considered a capital gain.
Both dividends and capital gains are taxable.
The difference is that generally capital gains are taxed at lower rate than dividends.
So, if you sell your family farm or related small business to a family member, you are in effect penalized for doing so, compared to selling to a non-family member who would pay lower taxes on the sale.
My Conservative colleague MP Larry Maguire from Brandon-Souris did not feel this tax approach was fair and tabled a Private Members Bill C-208 “An Act to amend the Income Tax Act (transfer of small business or family farm or fishing corporation)”.
Bill C-208 proposes to amend the Income Tax Act so that the same tax rate should apply when selling an operation to a family member as would apply when selling to a third party.
Unfortunately PM Trudeau, the Finance Minister, the Liberal cabinet and majority of the Liberal caucus all voted against this bill that promotes taxation fairness to families.
Fortunately, all members of the Conservative, the NDP, Bloc Québécois, Green MPs and some backbench Liberals voted for this bill allowing it to pass third reading by a vote of Yeas: 199 - Nays: 128.
Bill C-208 received Royal Assent and was passed into law on June 29, 2021.
Despite this bill now becoming law, the government is refusing to immediately implement the bill and has indicated that:
“The government proposes to introduce legislation to clarify that these amendments would apply at the beginning of the next taxation year, starting on January 1, 2022.”
The serious concern here is that the legislation has already been passed into law.
In spite of the fact that the current Liberal government doesn't support it.
This action undermines and disrespects the will of the people though an elected Parliament.
It is my view that the Prime Minister believes by delaying this bill until after a federal election, if the Liberal Government receives a majority, they can overturn it.
I believe this bill, that is now law, should be immediately implemented.
If a future majority government seeks to overturn these amendments to the Income Tax act, they could attempt to do so using the democratic process.
To use the bureaucracy to delay and basically block this bill is an arrogant affront to democracy.
My question this week: do you agree? I can be reached at Dan.Albas@parl.gc.ca or call toll free 1-800-665-8711.
7/14/2021 08:05:01 pm
Why are you asking us if it’s legal for the liberal government to break the law?what the hell is going on?whether I say yes or no or anybody Trudeau will do what ever he pleases and nobody will do anything about it. For god sakes you conservatives make some noise
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Dan Albas is the Member of Parliament for the riding of Central Okanagan-Similkameen-Nicola.
Central Okanagan – Similkameen – Nicola