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The legislation on income sprinkling released by Finance Minister Bill Morneau, while a step towards clarity, still represents an administrative and financial burden for a number of small businesses and the families that own them. 

The Coalition for Small Business Tax Fairness, a unified voice of over 74 organizations, including HRAI, collectively representing hundreds of thousands of business owners across the country, remains concerned that the new rules will cause business owners to have to cut through burdensome interpretative red tape in their efforts to prove that they or family members belong in one of the categories that would exempt them from the new sprinkling rules. The coalition continues to urge government to create a blanket exemption for spouses.

The Senate Standing Committee on National Finance issued a report that recommends the government withdraw the proposed changes to the taxation of private corporations in Canada, or barring that, to push back their application to 2019. The Senate Committee is also issuing a recommendation to proceed with an in-depth review of the country's tax system.

Given the complexity of these proposals, more time is needed to ensure that these changes can be implemented and do not harm small businesses, the backbone of the Canadian economy. The coalition stands ready to work with the government to find solutions that won't adversely affect small business' ability to grow, innovate and create jobs.

The Coalition for Small Business Tax Fairness is encouraging business owners and other concerned Canadians to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media. For more information please visit www.smallbiztaxfairness.ca