Petitions

The Liberals must stop their attack on small business

We, the undersigned, do believe as follows and demand that Justin Trudeau take or refrain from the following measures:

Background:

The Department of Finance released a “consultation paper” in July 2017 with respect to private corporations that demonstrated a complete lack of understanding of entrepreneurship and family owned businesses.

This consultation paper contained a number of tax proposals that would have been severely damaging to Canadian small business owners and professional service providers.

In December 2017, Bill Morneau issued revised proposals, purportedly to “simplify and improve” the treatment of so-called income sprinkling, only 3 weeks prior to the proposed measures taking effect.

The Liberals’ 2018 Budget made further changes to these proposals, creating even more uncertainty while failing to repair the damage caused by the initial policy.

WE petition the Government of Canada as follows:

This Liberal government’s revised proposals are unfair for the following reasons:

  1. Certain measures were to take effect as of 1 January 2018, leaving effectively no time for affected businesses to plan or make arrangements in response.
  2. Despite the Government’s intent to simplify, the changes will in fact be difficult and complex in their actual implementation, thereby increasing the regulatory burden and compliance risk for affected businesses.
  3. The taxation of so-called “passive income” will in fact attack income that is not passive in nature and may result in extremely high levels of tax, potentially exceeding 100% in some cases.

Accordingly, we demand that Justin Trudeau immediately withdraw the changes and embark on a comprehensive review, with wide consultation, of Canada’s tax laws in order to properly address the growing complexity and burden of tax regulation, the distortion of economic behavior through numerous ad hoc tax measures over the years, and to professionally and objectively examine any perceptions of “unfair” taxation under our tax regime.

Failing such review, Bill Morneau should at the very least delay the implementation of the new tax measures so that they commence no earlier than 1 January 2019, in order to provide for adequate tax planning by small businesses. 

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