NSBA Response to Senate Regarding Tax Changes
Posted on December 13, 2017 in News Release
NSBA applauds Senate Committee on National Finance call for comprehensive review of tax system.
Earlier today, the Standing Senate Committee on National Finance released a statement regarding the changes to the Income Tax Act proposed by the federal government, calling for a cancellation of the changes and a full review of the Canadian tax system. The NSBA applauds the National Finance Committee’s position on this issue and believes that a full review of the tax system will ultimately benefit small businesses and Canadians overall.
The NSBA also applauds the National Finance Committee for their willingness to listen to stakeholders on this issue. As noted in the Senate press release, the Committee heard from 138 witnesses in 30 hearings across the country. Having participated in one of these hearing, the NSBA is relieved to see the concerns expressed in that hearing, and most likely in every hearing across the country, reflected in the position of the Committee.
“The National Finance Committee’s position is great news for small businesses who have been worried about these tax changes for months,” said Keith Moen, Executive Director of the NSBA. “We have consistently heard about the impact that the proposed changes will have on businesses and families and we are happy to hear that those concerns have been heard in Ottawa in at least one chamber of government.”
In another release today regarding the proposed changes, Finance Minister Bill Morneau announced some proposed rules to prevent income sprinkling which will limit the use of the reasonableness test previously proposed. The reasonableness test will still apply in cases where an individual does not meet one of the following criteria: 1) A spouse over age 65; 2) Over 18 who make a “substantial labour contribution” of at least 20 hours per week; or 3) Over 25 who own 10 per cent or more of a business that earns less than 90 per cent of its income from the “provision of services.”
“While we appreciate the Minister providing some clarity regarding the rules that will be applied, we still note a lack of clarity of rules and a lack of acknowledgement of the role family members play in the success or failure of a business,” said Mr. Moen. “Ultimately, we believe that this clarification comes too little, too late and that a reset and comprehensive review of the tax system is necessary.”
About the NSBA: The NSBA is a member-driven and focused business association in Saskatoon that serves, promotes and protects business throughout Saskatoon and beyond. The NSBA has recently rebranded to be known simply by its acronym – NSBA – to reflect its current membership which has grown considerably beyond Saskatoon’s north end. The NSBA has developed its mandate and reputation by being a relevant, topical and effective organization that interacts with all levels of government and industry on a variety of issues for the betterment of our local economy.