BBOT Welcomes Reduction of Small Business Tax and Revisions to Proposed Tax Changes
Today, the Burnaby Board of Trade (BBOT) is welcoming the federal government’s plan to revise the proposed tax changes for business and to reduce the small business tax rate to 9%.
These changes are a result of advocacy efforts like those of the BBOT, the chamber of commerce network across the country, and our members in the business community. In our efforts, the BBOT worked to ensure any tax policy changes were as targeted as possible and that they avoided unintended negative consequences for the business community as a whole.
The BBOT is encouraged by the government’s indication that it will make several revisions to its proposed tax changes including:
- cancelling the proposed restrictions on the Lifetime Capital Gains Exemption
- broadening the definition of what constitutes making a ‘contribution’ to a business in regards to receiving dividend income
- committing that the administrative/compliance burden will be minimal and guaranteeing that small businesses will not be target
The BBOT also applauds the government’s announcement to reduce the small business tax rate from 10.5% to 10% as of January 1st, 2018 and then to 9% on January 1st, 2019, a reduction which could save a business up to $7,500 each year. As one of our major concerns with the government’s proposals was the potential to undermine business investment, this tax reduction and its savings are welcome.
The BBOT will review the forthcoming revisions to the proposed tax changes and will continue to engage with government on how these changes can be best implemented and applied.
For more information about the proposed tax changes for incorporated businesses and our related advocacy efforts, please visit our tax changes landing page, read our news release on this announcement or consult BBOT member KPMG’s bulletin on these revisions.