TIAPEI Concerned With Federal Tax Changes for Small Businesses
For Immediate Release
September 14th, 2017
TIAPEI Concerned With Federal Tax Changes for Businesses
Charlottetown, PE – The Tourism Industry Association of Prince Edward Island (TIAPEI) is concerned with the proposed major changes put forward by the Federal Government on the taxation of businesses.
The document that was released by the Federal Government proposes several changes such as: increases to the amount of taxes paid on the money a businesses has earned and saved, business owners must prove the amount of time and investment a family member puts into the business as “reasonable” compared to their payment received and entrepreneurs who want to sell their business and retire could see their tax rates increase significantly.
TIAPEI has reached out to several members of the organization who have voiced their concerns over the recommendations. One member suggested, “The big thing is that we need time to consider these changes and to discuss and study the implications of the changes proposed. Small business is the backbone of this country and Prince Edward Island and operators work very hard, often not taking much remuneration for themselves but rather reinvesting their money back into the business.”
Kevin Mouflier, TIAPEI CEO says, “Consultation is critical to the process. With a strong percentage of small owner operators in PEI who work tireless hours in their business this would be detrimental to the Tourism Industry. Owners could see a completely negative outcome with this change. We strongly urge tourism operators to consult their accountants and government to extend the deadline and include more public consultation. Many tourism businesses plan for the future in many cases looking towards family members being the successors to carry their businesses into the future. These proposed measures could negatively affect the succession process including retirement planning.”
To give feedback on these proposed changes, please visit The Greater Charlottetown Chamber of Commerce website at www.charlottetownchamber.com or call TIAPEI at 902-566-5008. To view the full consultation document, please visit: http://www.fin.gc.ca/n17/17-066-eng.asp
Tourism is a vital industry in Prince Edward Island that provides 7,700 full time equivalent jobs for Islanders. It accounts for approximately $430 million in economic activity each year and 6.3 percent of GDP, the highest percentage of any Canadian province.
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