CFIB backs bill to allow small biz to be passed on to next generation

A new private member’s bill promises to address a significant and costly flaw in Canada’s succession planning rules, and would save Canadian small business owners hundreds of thousands of dollars when transferring their business to a family member.

Read: Most small biz owners earn less than $73K, says CFIB

NDP MP Guy Caron’s bill proposes amendments to the Income Tax Act that will ease the tax burden on business owners seeking to pass their business on to their children or grandchildren. Under the current system, it is easier to sell to a third party than it is a family member.

“Many small business owners are telling us that tax rules discourage them from passing on their firm to their children and encourage selling to a stranger,” says Dan Kelly, president of the CFIB. “[The] bill addresses this unfairness and will help small business owners ensure their firm remains locally owned, creating and protecting local jobs.”

Read: 7 ways to help small biz: CFIB

Only half of small business owners have a planned succession, and of those, 76% plan to exit their businesses in the next 10 years.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.