In an article published on the Autosphere.ca site, Sarah Phaneuf, Tax Partner, discusses certain tax measures affecting SMEs in the automobile industry, mainly regarding the entrepreneurial succession.
Measures that will give companies a helping hand
Ms. Phaneuf points out the federal tax reduction for SMEs from 11% to 9% (reported in the firm’s post-federal budget press release). She also reminds readers of the slight reduction of the Quebec tax rate for companies that report taxable income over $500,000, which drops from 11.9% to 11.5%.
Nothing to encourage the succession
Sarah Phaneuf regrets that the issue of intergenerational business transfer, which particularly affects automobile wholesalers and repair shops, is not resolved at the federal level, even though it is partly resolved in Quebec. “Unfortunately, in Canada, it is generally disadvantageous for an owner to sell his business to a company held by one of his children instead of a company held by a third party,” she explains. Quebec has restored fairness for the family succession in some sectors, “but the Federal Government has not announced anything in this sense,” the expert adds.
To learn more, see the article Budgets fédéral et provincial : rien pour encourager la relève (Federal and provincial budgets: nothing to encourage the succession)
19 Jun 2015 | Written by :