Since the proposed tax changes were announced by Finance Minister, Bill Morneau, on July 18, members of Family Business Association have been expressing their concern – and with good reason.
“If this new legislation is passed, there will be severe repercussions for all families doing business in Canada, and especially those in the Atlantic Provinces,” says Alan Streatch, President of Family Business Association – Atlantic. “It’s going to have a direct and negative impact on how families pass on their businesses to future generations and will influence the risks entrepreneurs are willing to take to operate and invest in a company in a region that is already heavily taxed.”
SMEs are the back-bone of our economy, supporting job stability and long-term growth. Many of these enterprises are owned and managed by families, and these entrepreneurs take risks to ensure their businesses are prosperous and continue through the generations. This includes making investments in their employees and in succession and financial planning – all of which will be affected by this new legislation. The proposed changes will have punitive repercussions if implemented and will have a ripple down effect on how small businesses will operate in the future.
“Our Association’s trusted advisors are concerned that if the tax changes are implemented, the entrepreneurial spirit of those in the Atlantic Provinces will diminish as family members will receive fewer incentives to take on personal and financial investments required to grow their businesses,” says Streatch. “Our members are very concerned and are working hard to convey their worries to their local MPs and MLAs – expressing deep opposition on the proposed changes and the short timeline the government has set for this consultation process.”