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CME welcomes tax competitiveness improvements for SMEs and continues to call for comprehensive reforms

Published by Stefi Proulx on October 18, 2017

OTTAWA (October 18, 2017): Canadian Manufacturers & Exporters welcomes the ongoing announcements by the Federal Government aimed at improving tax competitiveness for small Canadian manufacturers and that address many of our concerns regarding the proposed changes to the tax treatment of Canadian-controlled Private Corporations (CCPCs).

Dennis Darby, President & CEO of CME stated “We applaud the government’s initial steps to abandon proposed changes to lifetime capital gains exemptions that would have penalized the intergenerational transfer of family businesses, as well as the reduction in the small business tax rates.”

“Today’s announcement of changes to the tax treatment of passive income held within a CCPC is also a positive step forward,” noted Darby. He added, “it reflects our concerns about the risks borne by small business owners and the important differences between business income and employee salaries. We remain concerned, however, about the growing complexity of the business tax system in Canada and await details in the 2018 Budget about how these changes will be practically implemented.”

While these steps are welcomed, CME continues to call for comprehensive reform to business taxes in Canada. We look for changes that result in a simpler tax structure which rewards entrepreneurship, innovation and growth rather than creating an incentive for companies to remain small.

About the Canadian Manufacturers & Exporters:

Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and thrive around the world. In 2016, CME released Industrie 2030 - a roadmap for doubling Canadian manufacturing activity by 2030. Our focus is to ensure the sector is dynamic, profitable, productive, innovative and growing. We aim to do this by strengthening the labour force, accelerating the adoption of advanced technology, supporting product commercialization, expanding marketplaces and, most importantly, ensuring a globally-competitive business environment. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada's exports.

For more information, please contact:
Stefi Proulx
Senior Communications Advisor
Canadian Manufacturers and Exporters
613-292-6070
stefi.proulx@cme-mec.ca

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