Ottawa, ON – A bill seconded by MP Ted Falk to lower taxes on family farm and small business transfers has been passed into law.
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.
“Something is seriously wrong when tax rules make it easier for a parent to sell their farm or small business to an absolute stranger than to their own children,” said Falk. “The passage of Bill C-208 means this inequity will finally be brought to an end.”
This legislation allows for sustainable business and farm succession and secures the retirement savings of business owners and farmers who elect to sell their operation to a family member.
“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.”
“As a seconder of this bill, I was pleased to support my friend and colleague Larry Maguire in his efforts to stand up for small businesses and farm families.”