Ottawa’s tweaks to capital gains taxation for small businesses fall short, lobby groups say: Globe
THE CANADIAN PRESS/Adrian Wyld
When it comes to the capital gains tax, Katherine Cuplinskas, a spokesperson for Finance Minister Chrystia Freeland, told The Globe and Mail in a statement that the government was ‘making the tax system fairer. That is the fiscally responsible thing to do.’
The Canadian government made recent adjustments to its Canadian Entrepreneur Incentive (CEI), which aims to lower capital-gains taxes for small business owners selling their companies. The changes include extending the CEI to agriculture and fishing properties and easing eligibility requirements. Mark Rendell writes that despite these tweaks, many business groups argue that the changes don't fully address their concerns, particularly regarding the increased capital-gains inclusion rate from 50% to 66%. While some sectors like farming will benefit, others, including doctors and tech workers, remain excluded, leaving many business owners still facing a higher tax burden.
It is “unfair and deeply disappointing that the government didn’t open it up to every sector of the economy in the same way,” Dan Kelly, head of the Canadian Federation of Independent Businesses said.
Additionally, CMA spokesperson Elena Gabrysz said in a statement: “It does not appear that incorporated physicians will be able to benefit from this incentive.”
