New rule on farm transfer tax treatment put off to 2022
Farm groups protest delay
By Dave Bedard, GFM Network News, Editor, Daily News
via Canadian Cattlemen - July 13, 2021
Rule changes passed in a federal bill to standardize tax treatment for sales of family-owned farms and small businesses will be delayed to the start of 2022, to the dismay of several farm groups.
Bill C-208, a private member’s bill spearheaded by western Manitoba Conservative MP Larry Maguire with amendments to the federal Income Tax Act, cleared the House of Commons in mid-May and Senate in late June. On June 29, it got royal assent.
However, the federal finance department on June 30 pointed out that C-208 as passed “does not include an application date.”
The Liberal-led government said June 30 it’s “committed to facilitating genuine intergenerational share transfers, while preventing tax avoidance that undermines the equity of Canada’s tax system.”
Thus, the government said, it proposes to introduce separate legislation to “clarify” that C-208’s amendments apply at the beginning of the next tax year, starting Jan. 1, 2022.
C-208’s tax law amendments are meant to...
‘Intentions clear’ ...