The Canadian Federation of Agriculture (CFA) is pleased to see that Finance Canada has considered the feedback contributed by CFA and other farm groups with regard to the Tax Fairness proposals, and has proposed changes that have addressed a number of the key concerns identified by Canadian farm businesses.

The group is happy to see that capital gains from qualified farm property would be excluded from Tax on Split Income.

CFA is also pleased to see further clarification and definition on the contributions required for both capital and labour, and looks forward to further dialogue with government officials to ensure the diverse contributions of farm family members are adequately accounted for.

"This announcement provides greater clarity on Income Sprinkling and CFA looks forward to continued engagement with Finance Canada and the Canada Revenue Agency to ensure application of the rules is streamlined, clearly communicated and applied in a clear, objective fashion for all businesses," said CFA President Ron Bonnett.

The organization is awaiting draft legislation and will fully analyze the proposed changes once a bill is introduced in Parliament.

 

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