The Canadian Federation of Agriculture (CFA) is concerned about the negative impacts on family farms that will come from the delay to enact Bill C-208 as legislation.
The Finance Department has said that they are delaying the implementation of the Bill until January 2022, and will likely be making amendments in order to close potential tax loopholes.
Bill C-208 removes the tax burden that farmers face when transferring their farm to a family member. Prior to Bill C-208, there was a much larger tax burden facing farmers who had incorporated their operations and were looking to pass their farms over to a family member compared to those who transferred them to an unrelated third party.
“In our talks with the accounting community, this delay, and the uncertainty around exactly what the amendments will be, will force many farmers who were looking to transfer their farm to a family member to delay their retirement plans until 2022. If they transfer to a family member under the current rules, it can potentially cost them hundreds of thousands of dollars more in taxes compared to if this Bill was fulfilled,” said Mary Robinson, CFA President.