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September 1, 2017 - The Canadian Roofing Contractors Association (CRCA) has joined a group of business organizations from across the country voicing opposition to the federal government's proposed tax changes for privately held corporations.

The Coalition for Small Business Tax Fairness released an open letter to federal Finance Minister Bill Morneau August 30th asking the government to undertake further consultations on its proposed taxation changes. These changes, which Morneau unveiled July 18th, will ban “income sprinkling,” where a private business’ income is diverted from a high-income individual to family members who pay lower taxes, as well as changing taxation of private corporations in relation to capital gains and “passive” income, wherein individuals hold money inside a corporation to shield it from a higher personal tax rate rather than investing in businesses.

The coalition says, if implemented, the government’s proposals will restrict small business owners from sharing income with family members and limit certain forms of saving in the business, making the firm more vulnerable in bad economic times and less able to innovate and grow. It also says changes to capital gains rules could make it more difficult for business owners to transfer their business to the next generation.

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