Farmscape for December 27, 2017

The President f Keystone Agricultural Producers says recent discussions surrounding the potential impact of proposed changes to Canada's taxation system has resulted in a better understanding within the federal government and within the Canada Revenue Agency of the challenges faced by agriculture.
In its budget last spring the federal government indicated plans to review the tax act and in July broad plans for change were announced, including limiting the capital gains exemption on land, changes to income sprinkling to the paying of dividends to children attending school.
Dan Mazier, the President of Keystone Agricultural Producers, says the proposed changes would have had a devastating effect on agriculture.

Clip-Dan Mazier-Keystone Agricultural Producers:
At first we were very frustrated that they would only allow 70 days for review on that but it sure got everybody's attention.
The government, as we know, backed down and they listened.
As frustrated as we were at the very first I haven't seen government make changes because of the recommendations that were made by the public in any such form, especially when it comes to taxation like this.
They did listen and did react.
To this day we're still talking to them because there are further questions about the changes but we're at a totally different level of understanding each other.
Even for the finance department, the CRA to understand agriculture, that is the hope that we have in all this conversation is everybody has got a way better level understanding of our taxation system and especially in agriculture.

Mazier suggests it is very important for farmers to consult with their accountants to determine what the changes will mean for their individual operations,
He says for all business, whether it's a corporation or a partnership or what ever, the lesson learned is you better ask the questions or you might have a surprise.
For Farmscape.Ca, I'm Bruce Cochrane.

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