The Government of Canada believes that fairness is essential to ensuring Canadians have confidence in their tax system. Budget 2017 makes the tax system fairer by making existing tax relief for individuals and families more effective and accessible, by eliminating ineffective and inefficient tax measures, and by helping ensure that no taxpayer is getting an advantage at the expense of those who are paying their fair share.<\/p>\n
The Department of Finance Canada today announced that it intends to propose amendments to the Income Tax Act to ensure that qualifying farmers and fishers selling to agricultural and fisheries cooperatives are eligible for the small business deduction in respect of income from those sales.<\/p>\n
These amendments, which are being released in draft form to allow an opportunity for public comment, would ensure that recently enacted amendments to the Income Tax Act intended to prevent the multiplication of the small business deduction do not inappropriately deny access to the small business deduction for a farmer\u2019s or fisher\u2019s corporation selling farming products or fishing catches to an arm\u2019s length agricultural or fisheries cooperative. The amendments would apply for taxation years that begin after March 21, 2016.<\/p>\n