NORTH AMERICA

Entrepreneurs ’ Incentive and will be hit with more taxes on capital gains for sales of small business shares above CA $ 2.25 million .

“ What worries me the most about the capital gains changes is the potential to demotivate Canadians from getting into business in the first place or working hard to grow a small business to a medium-sized business ,” Kelly said . “ CFIB will be pushing back against any increase in the capital gains inclusion rate for all small- and medium-sized business owners . It seems bizarre that government would single out some sectors of Canada ’ s SME community for higher taxes , including many of those hardest hit by pandemic restrictions like restaurants and arts and recreation firms .”

Capital gains changes a mixed bag for entrepreneurs

“ The big surprise for small business is a series of changes to capital gains taxation ,” said Dan Kelly , CFIB President . “ Our early assessment is that most small business owners will come out ahead or be unaffected by the changes as a result of a boost in the Lifetime Capital Gains Exemption from CA $ 1 to CA $ 1.25 million and a new Canadian Entrepreneurs ’ Incentive for some sectors which will lower the capital gains inclusion rate to 33.3 % on the next CA $ 2 million when fully phased in .”

But the capital gains inclusion rate increase to 66.7 % will create many net losers , including owners of medium-sized businesses . In addition , owners of professional corporations ( such as doctors ), financial , insurance , food and accommodation , arts , recreation , entertainment and personal care services firms will be excluded from accessing the new Canadian

CA $ 2.5 billion carbon tax rebate for SMEs

“ Carbon tax rebates owed to small businesses have been a long time coming , but we ’ re glad to see the government making progress on it . Most importantly , it is good to see government broaden its eligibility rules to include most small- and medium-sized firms ,” Kelly said .

Government has said it will ‘ urgently ’ return over CA $ 2.5 billion owed to an estimated 600,000 businesses with fewer than 500 employees . CFIB understands all Canadian Controlled Private Corporations ( CCPCs ) that issue T4s in the eight provinces will receive a rebate cheque based on their number of employees .

“ Many details of the size , scope and timing of carbon tax rebates for SMEs remains unclear ,” Kelly added . CFIB will continue to call on government to ensure the CA $ 2.5 billion is returned in 2024 with meaningful rebates for the smallest businesses and to raise the share of future SME rebates back to 9 % of carbon tax revenue or more .

“ It is important to note that 82 % of small firms now want the consumer carbon tax regime scrapped altogether ,” Kelly said . �

62 intelligent

. tech

Intelligent SME . tech