Ottawa, ON – A Conservative bill seeking to achieve tax fairness for small business succession has passed 3rd Reading.
Introduced by Conservative MP Larry Maguire, Bill C-208 amends the Income Tax Act to ensure small business owners receive the same tax treatment when selling their operation to a family member as when selling to a third party.
“Current tax laws make it more financially advantageous for a parent to sell their farm or small business to an absolute stranger than to their own children,” said Falk. “This is not fair.”
MP Falk seconded Bill C-208 to ensure farms and small businesses can be transferred to the next generation without having to worry about unfair taxes.
“Small business owners have often built strong relationships with their customers, employees, and communities over the long term,” said Falk. “Handing their operation over to a stranger may not be the best situation for the business owners or their communities. This bill ensures owners aren’t forced to sell to a stranger simply because they can’t afford higher tax rates.”
In total, 199 MPs voted in favour of Bill C-208 while 128 voted against it. Bill C-208 is now referred to the Senate for debate.