NSBA Response to Passive Income Announcement
Posted on October 18, 2017 in News Release
NSBA disappointed with Government’s piece-by-piece approach to announcing revisions to tax proposals.
Earlier today, the Finance Minister, Bill Morneau, announced that the proposed regulations for passive income would still be implemented, albeit with a threshold of $50,000 per year of passive investment income, with more announcements regarding the implementation of these rules still to come. The NSBA is disappointed in the Government’s piecemeal approach to announcing these tax changes over a number of days/announcements instead of as a single package.
Of particular concern to the NSBA is that the full details of the legislation have not been released and will not be until a Bill appears before Parliament. This leaves the business community unable to fully understand the proposals being made and unable to determine the relative benefits of the changes. For instance, with the $50,000 threshold for passive investment, it is unclear what will happen when a company switches their investments to another vehicle or ends the investments entirely.
“The Government’s approach to informing businesses of these changes leaves us with more questions than answers,” says Keith Moen, Executive Director of the NSBA. “These announcements seem designed to win political points instead of providing clarity to already frustrated business owners that have been left scrambling by the changes announced in the consultation paper in July 2017.”
The NSBA has previously called for extended consultations on these issues, including a review of the entire corporate tax system over a number of years. The NSBA maintains that this approach would be better than the current methodology as it would consider all aspects of these issues and allow all stakeholders to have an input in the process. The series of announcements practiced by the Government does not allow for this opportunity.
“With a new announcement every couple of days, it becomes increasingly apparent that the wrong approach was taken from the very beginning,” says Mr. Moen. “It is clear that a more measured and collaborative approach would have produced better results for all parties. With the current ‘smoke and mirrors’ approach, it becomes exceptionally difficult to trust in the actions of this Government.”
About the NSBA: The NSBA is a member-driven and focused organization that serves, promotes and protects business throughout Saskatoon and beyond. Though our origins and roots are in Saskatoon’s north end, today we encompass far more than that. We have developed our 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.
For more information:
Keith Moen
Executive Director
NSBA
(306) 242-3060