October 16, 2017
Canadian Manufacturers & Exporters welcomes today’s announcement that improves tax competitiveness for small Canadian manufacturers and that addresses several of our concerns regarding the proposed changes to the tax treatment of Canadian-controlled Private Corporations (CCPCs).
In particular, we support the decision to abandon proposed changes to lifetime capital gains exemptions that would have penalized the intergenerational transfer of family businesses. Measures to simplify the rules surrounding eligible income splitting are also welcome.
The federal government has also indicated that additional changes will be announced in the coming days regarding the taxation of passive income held inside corporations. We continue to look for changes that would encourage entrepreneurship, innovation and growth. We also anticipate changes that better reflect key differences between business income and salary income, as well as the personal risks often associated with small-business ownership.
ABOUT CANADIAN MANUFACTURERS & EXPORTERS
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
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Director of Communications & Branding
Canadian Manufacturers & Exporters