Finance Department faces grilling by MPs over tax rules in sale of family businesses

  • 📰 CTVNews
  • ⏱ Reading Time:
  • 30 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 99%

Business News News

Business Business Latest News,Business Business Headlines

Parliament's legal expert says the Liberal government waded into uncharted territory when it decided to delay enacting tax rule changes on the sale of small businesses between family members.

A Conservative private member's bill passed in late June rewrote part of the Income Tax Act so business owners could pass on companies to their children or relatives at the same tax rate as if they were selling to a stranger.

Parliamentary law clerk Philippe Dufresne tells the House of Commons finance committee today that the bill officially became law when it received royal assent. At the time, the Finance Department said the government would bring forward legislation to clarity that the changes would apply starting Jan. 1, 2022, because there was no coming-into-force date written into the bill.Hours before today's committee meeting, Finance Minister Chrystia Freeland reversed position, but added the government planned its own amendments to close loopholes that could help people avoid paying taxes.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 1. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This is what a 'moderating' housing market looked like in JuneSales are slowing, but is that having a meaningful effect on home prices?
Source: nationalpost - 🏆 10. / 80 Read more »