Ag sector welcomes clarified tax bill after weeks of confusion By Jeff Labine. Published on Jul 20, 2021 4:58pm (Dreamstime photo)
Agricultural associations are relieved, now that the federal government has cleared up confusing legislation that gives more generous tax treatment to small businesses, including farms.
After passing through Parliament, Bill C-208 received royal assent on June 29, which is when it became law. However, a June 30 news release from the Department of Finance created confusion by stating that the bill’s amendments to the Income Tax Act would not apply until the next taxation year, beginning on Jan. 1, 2022.
This caused House of Commons’ Finance committee chair Wayne Easter, a Liberal MP, to call an emergency meeting on Tuesday in an attempt to clear up the matter. On Monday, the Finance Department and Finance Minister Chrystia Freeland issued separate news releases saying Bill C-208 has been part of Canada’s Income Tax Act since June 29.