October 19, 2017, OTTAWA – It is with much interest that the Canadian Pork Council (CPC) has followed the developments surrounding the tax changes proposed by the Department of Finance Canada since the end of the consultation period on October 5, 2017, as it relates to tax planning using private corporations.
Although specific details are not yet available, the CPC is pleased to notice that farmer’s concerns were taken into consideration by the Minister of Finance Bill Morneau and the Trudeau Government as it is considering the next steps to reach their goal of achieving tax fairness.
“The announcements made this week are a step in the right direction as to not penalize hard-working farmers for feeding this country, and over a hundred others” said Rick Bergmann, CPC Chair.
“By recognizing the specific challenges that farmers, particularly hog producers, face year after year, the government understood how some of the changes originally proposed could have had a devastating impact on the whole industry,” he continued.
“We look forward to getting a better understanding of the specific measures proposed to ensure Canadian hog farmers have the latitude to grow their business and keep up with an ever-changing industry, pay their family members fairly for their important contribution to the farm, and plan for the future,” added Bergmann.
The CPC is happy that the Government recognized the incredible work of farmers and their impact on the Canadian economy and relieved that the Government is working to ensure that the proposed changes will not affect the transfer of a family business to the next generation of hog producers. This insures the vitality of the pork industry and the prosperity of the country as a whole.
The CPC stands willing to participate in meaningful discussions on the tax system and develop solutions to identified problems. In the meantime, the CPC will continue to speak on behalf of hog producers with the federal government for laws and policies that support the agriculture and agri-food sector as an engine of growth.
On behalf of 7,000 Canadian hog producers, the CPC had shared a few key points with the Department of Finance Canada regarding income sprinkling, passive investments, converting income into capital gains and intergenerational transfers.