Bill C-208 has taken a new step.
A majority of federal MPs in the House of Commons voted in favor, allowing him to enter the Senate, the Minister said. Regrouping of insurance brokerage firms in Quebec (RCCAQ) to its members, in a newsletter whose Insurance portal got copy.
Bill C-208, the An Act to amend the Income Tax Act (transfer of a small business or of a family farming or fishing corporation) to facilitate the transfer of business between members of the same family was adopted by the majority of members of the House of Commons and made its official entry into the Senate.
” With the Income Tax Act currently in effect in Canada, it is much more tax efficient to transfer your business to a third party rather than to a family member. In fact, for several years, the tax rate has been higher for owner-managers who opt for an intergenerational business transfer, ”states the RCCAQ in its bulletin.
The Regroupement estimates that between 25% and 50% of brokerage firms which, depending on the province, are family businesses. At the end of winter, theInsurance Brokers Association of Canada (ACAC) led representations in Ottawa to have the tax measures surrounding such a transfer changed.
“The issue of succession, exacerbated by the many retirements, as well as that of the labor shortage have significant consequences on the sustainability of firms. By allowing small businesses to benefit from the same tax exemption when the sale is made within the same family as when it is made to an unrelated person, Bill C-208 would correct a significant inequity and promote maintaining practices in the regions, ”indicates the RCCAQ in its bulletin.
The next steps
According to the RCCAQ, the project is currently being studied in the Senate and passed second reading on May 27. It was referred for committee consideration. It will then have to go through other steps before obtaining royal assent.
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