Ottawa, October 18, 2017
Canadian Manufacturers & Exporters welcomes the ongoing announcements by the Federal Government aimed at improving tax competitiveness for small Canadian manufacturers and that address many of our concerns regarding the proposed changes to the tax treatment of Canadian-controlled Private Corporations (CCPCs).
Dennis Darby, President & CEO of CME stated “We applaud the government’s initial steps to abandon proposed changes to lifetime capital gains exemptions that would have penalized the intergenerational transfer of family businesses, as well as the reduction in the small business tax rates.”
“Today’s announcement of changes to the tax treatment of passive income held within a CCPC is also a positive step forward,” noted Darby. He added, “it reflects our concerns about the risks borne by small business owners and the important differences between business income and employee salaries. We remain concerned, however, about the growing complexity of the business tax system in Canada and await details in the 2018 Budget about how these changes will be practically implemented.”
While these steps are welcomed, CME continues to call for comprehensive reform to business taxes in Canada. We look for changes that result in a simpler tax structure which rewards entrepreneurship, innovation and growth rather than creating an incentive for companies to remain small.
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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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