Dear BCFPA Members;
Earlier this year, the Federal Government announced proposed business tax changes. The BC Food Processors Association has concerns about the potential negative impact on its members and the food and beverage processing industry as a whole, as they could prohibit growth, reduce job creation, and ultimately increase the cost of doing business.
We are reaching out to our members to ensure that you are informed of the impact these changes could have on your business so you can voice your concerns to your elected officials. The BCFPA will also be responding to the Federal government but encourage you to do the same.
The key changes that we feel will be of specific impact to our industry are;
- Holding Passive Investments in a Company.
- Converting Income into Capital Gains
- Income Sprinkling
If implemented, these changes will impact business owners’ in the following ways:
- Limit ability to transfer their business to the next generation;
- Limit small business owners’ ability to share income with family members;
- Limit different savings vehicles for businesses, making them more vulnerable during challenging economic times or slow business cycles;
- Increases the overall tax to small business owners resulting in less cash for growth activities and job creation.
The proposed rules do not reflect the reality that business owners take on additional personal risk, are not eligible for EI benefits and typically do not have a retirement pension and usually rely on investments to fund their retirement years. Business groups across Canada are uniting on this issue and present a unified voice to oppose and request more dialogue on these tax proposals.
We are calling on the Federal Government to extend the consultation deadline for these proposed changed, and to engage in meaningful dialogue with the food and beverage processing sector to determine a better course of action for all parties. A 75-day consultation window is not nearly enough to adequately engage the business community.
This is an urgent and time-sensitive issue as the deadline for responding is October 2, 2017 and we encourage you to act quickly if you would like to share your thoughts and opinion with your Member of Parliament (MP), the Finance Minister and Prime Minister. Please see below for the applicable email contact information.
To assist you with your response, we’ve created a letter template that you may customize and use for your communication. You can find the draft letter HERE.
For more information on these tax changes, we recommend that you contact your accountant or accounting firm directly.
James Donaldson, CEO
BC Food Processors Association
We encourage you to customize this letter and send to:
Your local MP. If you’re uncertain as to which Member of Parliament represents your riding, here’s a link with a list of all BC MP’s;
Be sure to CC the following in your response to your MP;
Tax Planning Using Private Corporations: Invitation for Comments – Government Consultation Email
The Honourable William Francis Morneau, Minister of Finance
The Right Honourable Justin P.J. Trudeau, Prime Minister