Bill C-208, which might amend the Earnings Tax Act for the transfers of small companies, family farms, or fishing firms, handed its third studying in the Home of Commons on Wednesday, Could 12, sending it to the Senate for approval.
The non-public member’s bill, launched by Manitoba Conservative MP Larry Maguire, would make it extra reasonably priced for producers to promote their farms to a family member as an alternative of selling to a non-family member.
“Very simply, it levels the playing field for a family that wants to sell to their son or daughter or grandchild as opposed to selling to a complete stranger,” explains Maguire in the interview under.
The bill obtained help at third studying from Conservative, New Democrat, Bloc, and Inexperienced get together members, in addition to 19 Liberal MPs.
The Agricultural Producers Affiliation of Saskatchewan (APAS) and Ontario Federation of Agriculture say they’re very happy that Bill C-208 has been permitted by the Home of Commons.
“The passing of this bill in the House is good news for producers in Saskatchewan and across the country,” says Todd Lewis, president of APAS. “For too long, it’s hasn’t made sense that it’s cheaper to sell your farm to a stranger than to your son or daughter.”
Proper now, when a producer chooses to promote their farm to a family member, the sale is taken into account a dividend between the unique buy value and the sale value. If the producer bought to a non-family member, the sale could be seen as capital acquire, which is taxed at a decrease charge than a dividend.
APAS estimates that 95 per cent of Saskatchewan farming operations are family-owned and operated and that the quantity of producers nearing retirement is rising. Many of these family farms need to switch their belongings to a family member to preserve the farm as a family operation, says the group.
The Ontario Federation of Agriculture can also be happy the bill has handed to the subsequent stage and helps the requirement that a baby who has purchased a farm not promote the shares of the farm company inside 60 months. OFA states that this wording will protect the new tax remedy for farm kids who want to preserve the business in the family.
Bill C-208 will now want to be handed by the Senate earlier than it comes regulation. Maguire says he would hope to see the bill transfer forward in the Senate earlier than Parliament rises for summer season in June.
Hear to Brandon-Souris MP Larry Maguire talk about the passage of Bill C-208 in the Home of Commons, expectations for it in the Senate, and extra: