Tax changes & your farm: CCGA responds to consultation

October 16, 2017

Alberta Canola is a member of the Canadian Canola Growers Association (CCGA) and we are working with CCGA to ensure the concerns of Alberta’s canola growers are being heard.


Canadian Canola Growers Association update as posted on the CCGA Website Hub​​​​​​​​​​​​​​​​​

The federal government is proposing tax changes that will impact small business corporations, including farms. Three major changes being proposed could significantly impact farmers, including adjustments to:

  • income sprinkling (commonly known as income splitting),
  • passive investment income, and
  • use of the capital gains exemption.

Of particular concern for farms are the impacts that the proposals could have on succession planning, exiting the farming business, and farmer ‘retirement’.

CCGA is working with agricultural stakeholders and financial management experts to better understand the impact of these changes. While the official consultation closed on October 2, 2017, more time is still needed for both government and industry to study the full impact of these changes and to identify the provisions required to ensure farming and farmers are not harmed by them.

To view CCGA’s submission to the consultation click here​.  The key recommendations in CCGA’s submission include:

  1. ​Provide​ more time for better analysis  to understand the complexity of the changes and their impact.
  2. Provide clarity  of the proposed changes to the relevant Income Tax Act sections and ensure exemptions are provided to farm properties and farm income as they relate to these sections.
  3. Provide clarity on the ‘reasonableness tests’ for income sprinkling and provide consideration for the seasonal nature of farm work and variable nature of farm income.
  4. Exempt the sale of Qualified Farm Property from the proposed changes such that the use of Lifetime Capital Gains Exemption for the sale of a farm business to a family member can continue.
  5. Define more precisely passive income and provide consideration to allow farmers to continue to use the capital in their businesses to fund their retirement.

It is not too late to have your voice heard.  What you can do?

  1. Talk to your advisor.  It has been suggested that many  of the proposed changes will take effect in 2018. Talk to your accountant or financial advisor to gain an understanding of the impact on your farm business.
  2. Contact your Member of Parliament (MP). Talk with your MP (phone or email are quickest) and let them know how these proposals will impact your family’s future.

To find contact information for your MP, click here.  Enter your postal code in the search criteria box to access telephone, email and mailing details for your MP’s local office.

If you send an email, copy the Minister of Agriculture ([email protected]) and the Minister of Finance ([email protected]).


Thanks to the Canadian Canola Growers Association for generously sharing this content.

Visit the CCGA website for more agricultural news, videos and podcasts

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