Prior to passing C-208, federal taxes treated intergenerational transfers of the company as a dividend rather than a capital gain. The result: the qualifying tax credit was lower.
Selling to a stranger is more profitable than selling your business to your children
Julie Bissonnette, president of the Federation for the Next Generation of Agriculture of Quebec (FRAQ), regrets.
Agricultural company in Istria
Photo: Radio Canada/Martin Bilodo
can represent a shadow a lot of money
Especially in the agricultural sector. There are some that suddenly become $100,000 easily.
The converter, at the end of his career, has the option of selling to a stranger and getting a nice retirement or selling to his children and getting bail due to the system.
After 15 years of activism to facilitate the maintenance of businesses within families, Separation Victory finally cried out when the Royal Assent was glued to C-208 on June 29.
On the other hand, the victory was short-lived. The next day, the Ministry of Finance issued a press release.
Bell C-208 […] Does not contain a valid date تاريخ
Ministry confirms. The government proposes to introduce another bill so that the provisions of C-208 do not enter into force until 1he is January 2022.
The smell of elections in the fall
Jasmine Janet, Vice President of National Affairs at the Canadian Federation of Independent Business (CFIB)
Photo: Radio Canada / Hugo Belanger
This is scandalous!
Ton Jasmin Guénette, Vice President of National Affairs at the Canadian Federation of Independent Business.
Parliament is above the prime minister. Parliament is above all ministers, all ministries
He remembers. It is incomprehensible that the Treasury decided to announce that it would not implement a law passed by the House of Commons and the Senate. It is, in my opinion, one of the rare times in the history of the country that we see this.
Finance Minister Chrystia Freeland and Prime Minister Justin Trudeau during the 2021 budget
Photo: The Canadian Press / Sean Kilpatrick
Bill C-208 does not specify when the law will go into effect. However, the law of interpretation (A new window) Official: In the absence of any indication of the date of entry into force, the legislation shall take effect on the date of its approval in the name of Her Majesty.
to me Separation As for the FCI, the position of the government and the confusion it maintains is, at best, amateurish. At worst, a voluntary coup by the executive branch to escape the dominance of the legislative arm of the state.
If there are elections and the liberals are re-elected [majoritaires], I think the government will do its best to change and pass a new law
Jasmine Jennity’s concerns.
The government was surprised
Patrick Tellon is Professor of Constitutional Law at Laval University
Photo: Radio Canada/Alexander Duval
He can totally do it
Patrick Tellon, professor of constitutional law at Laval University, confirms. What one Parliament decides, the other Parliament can undo.
In his view, two unusual facts overlap and create confusion currently prevailing over the implementation of C-208, a bill introduced by a Conservative MP from Manitoba.
We encounter a rare example of a bill proposed by opposition parliamentarians and adopted. We have a government that didn’t want this law, didn’t write it, didn’t draft it, even the government is a little surprised by its adoption.
The government must now implement a law they never wanted
Patrick Taeyeon adds. However, the old saying that no one can be impossible also applies to the government
The professor mentions.
It is possible that the bill will go into effect, but the administration is not immediately ready to take action on it.
, He said. The law has been passed and must be respected by the executive branch. It must be implemented and if it takes time, it will be up to the Executive to correct, compensate and reform the people who want to claim the rights under this new law and who are entitled to them.
In other words: whether the government is ready or not, the Constitution does not care. Once Her Majesty the Queen ratifies the bill, the bill Become Law.
The opposition is crying out for the hobby
Peace Tower in Parliament Ottawa
Photo: Radio Canada/Olivier Plante
But the Finance Ministry’s statement didn’t stop at just throwing a cold shower on the entrepreneurs’ festivities. It also caused confusion.
We are swimming in the unknown and at this point there are business owners who don’t know which foot to dance on.
Jasmine Janet of the Canadian Federation of Independent Business.
To make things right, the Ottawa Finance Standing Committee called a meeting on Tuesday with the goal of bringing the executive back into order.
If the government wants to make changes, eg a later date for entry into force, guidelines, etc., it’s okay to come up with all that.
, recalls the Vice-Chairman of the Committee, Quebec Bloc Gabrielle Stie Marie. No suggestion was made. He dragged his legs and is irresponsible.
The Bloc Québécois MP by Joliette, Gabriel Ste-Marie
Photo: The Canadian Press / Sean Kilpatrick
Bill C-208 received its first reading on February 19, 2020. It took 527 days to become the law of the land.
The government comes in and tells us: “During all these stages, we slept on gas?” It lacks seriousness, it is a hobby. Either there is a snake under the rock and they want to undo what was adopted, or they were not up to the task.
Disagreement within the liberal group
The opposition is not alone in denouncing the Trudeau government’s position on this issue.
The Chairman of the Finance Committee, Wayne Easter, is himself a liberal who has already announced that he will leave the political arena in the upcoming elections.
He’s summoning the committee to warm the ears of his government, it’s really exceptional
, confirms the elected block member of Juliet. Seventeen elected liberals voted for the Conservative bill.
Wayne Easter, Chairman of the House of Commons Standing Committee on Finance
Photo: The Canadian Press / Sean Kilpatrick
According to the MNP tax firm, the pre-C-208 tax system penalized intergenerational transmission to prevent tax evasion.
According to Gabriel Set-Marie, this is the reason why this experiment is outdated. Quebec actually tweaked its tax system several years ago to make it easier to move businesses within families, without compromising businesses that falsely refer to their relatives to evade tax authorities.
Radio Canada contacted the Finance Ministry, which acknowledged receipt on Friday. By late Sunday afternoon, he had not made his position clear.
