New Income Splitting Tax Rules Take Farmer Concerns into Account
Winnipeg, MB — Last week, Finance Minister Bill Morneau announced details on how income splitting will be treated by the Canada Revenue Agency beginning in 2018.
"When originally proposed this summer, farmers had serious concerns about how changes to income splitting would negatively impact the viability and transition of family farms," says Jack Froese, President of the Canadian Canola Growers Association (CCGA). "The changes announced last week, including clear guidance on "bright-line" tests, add clarity and help ease a number of farmers' concerns, including the recognition that family members make contributions to the farming business."
In publishing the changes, the Government noted that the revised income splitting measures are proposed to come into effect for the 2018 taxation year and that the measures would be enacted as part of the budget process. Businesses will have the 2018 year to structure their operations to make any needed changes.
"We're pleased that the government took the time to understand the implications the proposals would have had on farmers and made important changes to modify the original proposal," says Froese. "Voicing our concerns has had a real impact."
CCGA will continue to follow several issues related to the original tax proposal that remain outstanding and looks forward to working with the government on these issues early in the new year.
With the changes to income splitting coming into the effect soon, CCGA encourages all farmers who may be impacted to consult their tax professional as soon as possible.
CCGA represents more than 43,000 canola farmers on national and international issues, policies and programs that impact farm profitability.
Kelly Green, Director of Communications
t: 204.789.8821 e: email@example.com