Futurpreneur Canada welcomes government moving to respond to feedback on proposed tax changes
A STATEMENT FROM FUTURPRENEUR CANADA
Having helped more than 10,000 young people to launch and grow businesses across Canada, Futurpreneur Canada is understandably paying close attention to the proposed federal tax changes and their potential impact on young entrepreneurs. We consulted with a broad range of our young entrepreneurs, mentors, investors and partners and shared their concerns with the Minister of Finance and the Minister of Small Business and Tourism during the consultation period. We heard a strong desire for more clarity about who will be affected, and how, as well as concerns that the proposed changes could:
- Increase the perceived risks of launching a business, including by limiting offsetting tax treatment;
- Complicate retiring business owners’ succession planning to sustain and rejuvenate going concern businesses;
- Reduce available capital to sustain and grow businesses, particularly from private company investors; and
- Limit options to save for equipment and other big expenses, parental and other leaves, rainy days, and retirement/succession planning.
In order to maintain the growing entrepreneurial interest of young people and their ability to build competitive businesses and jobs, we encouraged the government to consider taking a more targeted approach in both substance and communication as it develops these proposed changes. We also suggested that the government provide additional time for consultation and consideration of options that may better advance fairness and other key objectives such as expanding private investment in growing businesses and facilitating retiring business owner succession planning and transfers.
Futurpreneur Canada shares this government’s strong desire to encourage and help more aspiring young entrepreneurs to achieve their potential and build our future, and we look forward to continuing to work with the government and other partners to achieve this goal. We appreciate being asked to comment on how the proposed tax planning changes may affect this shared goal. We welcome the movement by government to respond to this and other constructive feedback being provided as the proposed changes continue to be developed.