Mortgage channel, additional businesses bands together

Mortgage channel, additional businesses bands together

Mortgage channel, additional businesses bands together Nearly three dozen associations have banded together to fight for tax fairness for Canadian small businesses, including mortgage brokers.

A total of 35 Canadian organizations – including the Canadian Mortgage Brokers Association and Independent Financial Brokers of Canada – have formed the Coalition for Small Business Tax Fairness which aims to be a unified voice opposing the Canadian government’s tax proposals that would change the way small businesses are taxed in Canada.

“Mortgage brokers are small business owners, who employ others – however, the proposed new tax measures will force many to terminate those employees or shut down business. The terminated employees can always collect employment insurance, but not the self-employed broker, left with business debts and no safety nets.” — Samantha Gale, Executive Director, Canadian Mortgage
Brokers Association

If implemented, the proposed tax tweak will restrict small business owners from sharing income with family; will make small businesses more vulnerable in the event of a downturn; will change capital gains rules that will make it more difficult to transfer business as a succession plan, among others.

It will also likely deter many Canadians from establishing additional small businesses.

The 35 members of the coalition of presented a letter to Finance Minister Bill Morneau asking him to shelf the plan and instead meet with members of the business community to address the best way forward.

“Small- and medium-sized businesses - many of which are also family-owned - make up the vast majority of home building and renovation companies. These entrepreneurs take significant financial risks to start their businesses and make them grow,” Kevin Lee, Chief Executive Officer, Canadian Home Builders’ Association, said. “The full impact of the proposed tax changes for private corporations will mean fewer small businesses will survive in our industry, fewer jobs will get created, and home prices will go up due to increased taxes and less competition. This is going to hurt the economy and our communities.”

The letter can be read here.