Changes to capital gains tax not for everyone
A national organization representing Canadian business is putting pressure on the federal government to clarify rules surrounding capital gains proposals contained in last month’s budget.
One item being scrutinized by the Canadian Federation of Independent Business (CFIB) is the new Canadian Entrepreneurs Incentive. Qualifying businesses would receive additional relief from the capital gains tax, above the lifetime exemption.
The issue is some businesses are eligible while others are not, according to CFIB National President Dan Kelly.
“If you run a restaurant, you’re excluded. If you run a retail shop, you’re included. If you run an accounting business, you’re excluded. But if you run a manufacturing business, you are included. It really just draws a line between the business community,” Kelly said. “We estimate at CFIB that about half of Canada’s businesses would benefit from a preferential capital gains inclusion rate.”