June 22, 2015, Ottawa – A new private member’s bill could save Canadian small business owners money when transferring their business to a family member, the Canadian Federation of Independent Business said in a news release.
Under the current system, it is more expensive for a business owner to sell to their own family members than to a third party, the association said. Liberal MP Emmanuel Dubourg’s Bill C-691 proposes changes to the Income Tax Act that will ease the tax burden on business owners seeking to pass their business on to their children or grandchildren, said the Canadian Federation of Independent Business (CFIB).
“Many small business owners tell us that tax rules discourage them from passing on their firm to their children and encourage selling to a stranger,” said Dan Kelly, president of the association. “Mr. Dubourg’s bill corrects this unfairness and will help small business owners ensure their firm remains locally owned, creating and protecting local jobs. CFIB commends Mr. Dubourg and the Liberal Party for their leadership on this important small business policy.”
Only half of small business owners have a planned succession, and of those, 76 per cent plan to exit their businesses in the next 10 years and the bill is a positive step forward for Canada’s small businesses, the association said.
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