Latest news with #CFIB
Yahoo
5 hours ago
- Business
- Yahoo
Billions in carbon rebates for small businesses won't be taxed, Ottawa confirms
Small businesses may not have to pay income tax on carbon rebates they receive, if draft legislation issued by federal Finance Minister Francois-Philippe Champagne Monday comes to pass. Although the Canadian government axed the federal consumer fuel charge tax as of April 1, there are still final payments to come for these rebates for the 2024-25 year for eligible small businesses and these will be tax-free. Past payments from previous years will also not be included as taxable income. This is welcome news at a time when small businesses are facing economic headwinds, said Dan Kelly, chief executive of the small-business association the Canadian Federation of Independent Business (CFIB). But businesses will likely have to file amended returns once the legislation is formally approved, adding to their paperwork, said Rob Jeffery, a partner in consultancy Deloitte's LLP's tax practice. The process could also take several months. The government said on its website that it will introduce legislation in Parliament to implement these changes in the fall once it receives Royal Assent. This would allow the Canada Revenue Agency (CRA) to process amended corporate income tax returns. 'With the consumer fuel charge gone, we are able to refocus federal carbon pollution pricing standards on ensuring that carbon pricing systems are in place across Canada on a broad range of greenhouse gas emissions from industry,' Champagne said in a statement. 'In doing so, we will ensure a system that is fair and effective.' The carbon rebate for small businesses, launched in 2024, provided automatic, refundable tax credits to about 600,000 small- and medium-sized corporations across the county to offset the costs of the carbon tax. These rebates were paid out in December for the five years the federal fuel charge applied, starting in 2019 (though some provinces introduced the carbon tax in later years). The final instalment for the 2024-2025 tax year has not yet been paid out. Initially, former finance minister Chrystia Freeland posted on X in November that the rebate would be tax-free. However, the CRA said in February that since there was no amended legislation by Parliament to make these rebates tax-free, this meant they would still be subject to taxes. The draft legislation introduced on Monday aims to rectify this issue. Once the bill is approved, the government said the CRA will process amended T2 corporation income tax returns for those that have already filed with the rebate as part of their taxable income. Further guidance will be provided by the CRA at that time, the government added. 'We viewed this as unfinished business from the previous government,' CFIB's Kelly said. 'Businesses would have had to pay corporate income taxes, both federal and provincial, on $2.5 billion that they had been paid out in December, and that's not a small chunk of change.' This final round of payments will amount to another $623 billion paid to businesses, which will now be tax-free, Kelly said. This legislation means eligible businesses that haven't already filed their tax returns (which were due in June) will not have to pay taxes on these rebates for those five years when the federal fuel charge applied, he said. Those that did file already will get a refund on the taxes they paid for their rebates. 'There are about 1.1 million businesses with paid staff in Canada, so this is a huge number of small firms that will have a sizable amount of money back at a time when the economy's not knocking the lights out.' It was previously unclear whether businesses that had not filed their income tax return by the original deadline (July 15, 2024) would still receive this rebate for past years, Kelly said. However, the government also confirmed Monday that eligible businesses that filed their 2023 tax return after July 15, 2024, and on or before Dec. 31, 2024, would still be eligible to receive tax-free payments for the 2019 to 2024 fuel charge years, once the legislation receives Royal Assent. Deloitte's Jeffery said it is unclear but quite likely that eligible businesses that have already filed their returns with the carbon tax rebate included as taxable income will now have to file amended returns to exempt it. From a timing standpoint, Jeffery said the amended returns cannot be filed and processed by the CRA until the legislation is formally approved. Currently, Parliament is not scheduled to return until Sept. 15 and it could take some time before the legislation passes and small businesses can file these amended returns. Carbon pricing rebates land in bank accounts as Liberals defend embattled policy Small businesses to receive five years' worth of carbon rebates in December Also, these rebates can vary from hundreds to thousands of dollars, depending on the number of employees and the province the business is based in, he said. 'The processing of that tends to take, in my experience, several months,' he said. 'So, realistically, this does add some administrative burden for businesses.' While it is highly likely the legislation will be enacted in the fall, 'nothing is final' until it is formally approved, Jeffery said. This means businesses need to wait for the legislation. The government noted on its website that businesses that choose not to include the rebate in their taxable income when filing their returns could be reassessed, with interest, in the event that the legislation is not enacted. • Email: slouis@ Sign in to access your portfolio
Winnipeg Free Press
a day ago
- Business
- Winnipeg Free Press
Manitoba sets example on trade: CFIB
Manitoba is maintaining its position as a national leader on internal trade, a new report by the Canadian Federation of Independent Business finds. The keystone province received an 'A-' from the CFIB in its State of Internal Trade report, released Monday. Only Nova Scotia and Ontario scored higher, with each province earning an 'A.' (Manitoba had topped last year's list with an 'A-.') Ryan Mallough, CFIB vice-president of legislative affairs and communications, said, generally speaking, the organization has seen positive action across the country in the last year. MIKE DEAL / FREE PRESS FILES Chuck Davidson, president and CEO of Manitoba Chambers of Commerce, believes Manitoba is heading in the right direction with regards to internal trade. More progress has been made on removing trade barriers within Canada in the past six months than in eight years since the Canadian Free Trade Agreement was signed. 'This year's blown other years out of the water, in terms of progress,' Mallough said, noting the contentious trade relationship between Canada and the U.S. in recent months has given political urgency to internal trade. According to the CFIB, Manitoba sets a strong example by permitting direct-to-consumer alcohol shipments and through Bill 47, its new Fair Trade in Canada Act, which simplifies recognition of goods and services from other provinces. Manitoba has also signed agreements with Ontario and British Columbia to accelerate recognition of goods, services and professional credentials. Despite Manitoba's improvements, challenges remain, per a CFIB news release. Issues such as duplicate regulations, slow approval timelines and a lack of trade-enabling infrastructure continue to hamper the movement of goods, services and labour. The CFIB critiqued the Fair Trade in Canada Act for excluding labour mobility — a point echoed by Chuck Davidson, president of the Manitoba Chambers of Commerce. The more provinces and territories do to make the rules that regulate workers consistent, the better, he said. Manitoba's position as an internal trade leader is 'a good sign,' Davidson said in response to the CFIB report. 'We're heading in the right direction.' Business, Mining, Trade and Job Creation Minister Jamie Moses said the province already has a labour mobility act, and addressing labour mobility in Bill 47 would have created red tape. 'Our bill is very much in line with breaking down barriers for Manitoba businesses to reach markets right across the country,' Moses said. Manitoba Progressive Conservative finance critic Lauren Stone was not available for comment Monday. Monday Mornings The latest local business news and a lookahead to the coming week. Looking ahead, Mallough said Manitoba can improve by implementing its mutual recognition legislation. Seven different jurisdictions in Canada are taking seven different approaches to mutual recognition, he added, so the CFIB is cautious in its optimism. The premiers and Prime Minister Mark Carney have instructed the Committee on Internal Trade to reach a pan-Canadian mutual recognition agreement for December — and the CFIB will be watching those conversations closely. 'Everybody seems to want to get this done and that's what has been the most encouraging over these last six months,' Mallough said. 'At the same time … we want to make sure we don't lose that political momentum. We have not crossed the goal line yet.' Aaron EppReporter Aaron Epp reports on business for the Free Press. After freelancing for the paper for a decade, he joined the staff full-time in 2024. He was previously the associate editor at Canadian Mennonite. Read more about Aaron. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Vancouver Sun
a day ago
- Business
- Vancouver Sun
B.C. makes gains on breaking down interprovincial trade barriers: CFIB
B.C. improved its ranking to a B+ grade on the Canadian Federation of Independent Business' 2025 State of Internal Trade report, up from a B in 2024, but it still has 'a lot more work to do,' according to Ryan Mitton, CFIB's director of legislative affairs for B.C. The federation released its latest report card on interprovincial trade on Monday and credited B.C.'s gain on legislation that dropped most of its barriers to trade with other provinces as one measure to protect the province from external threats. Mitton said eliminating trade barriers between provinces 'couldn't be more critical' at a time when threatened U.S. tariffs are starting to do real damage to the Canadian economy. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'Really, the big thing is, we've seen so much momentum just in the last six months, more even than in the six years since the 2017 Canada Free Trade Agreement,' Mitton added. In B.C., this included a section in the province's economic stabilization act that calls for the unilateral recognition in this province of most goods and services produced in other provinces, Mitton said. However, while B.C. has lifted its restrictions on direct-to-consumer shipments of wine, Mitton said it has left similar restrictions on direct shipments of craft beer and spirits. And although B.C. has improved on its recognition of professional and trades certifications from other provinces, Mitton added that B.C. still hasn't set a schedule for the approval of workers certified in other provinces. 'The danger at this point is that we lose sight of that (progress). We need to keep the movement going.' Nova Scotia earned top marks on the Canadian Federation of Independent Business report card with an A grade because it was the first province to implement mutual recognition legislation, followed closely by Ontario, which earned a slightly lower A grade by unilaterally eliminating all of the exemptions to the Canada Free Trade Agreement that it maintained. Manitoba was the next closest with an A-, and B.C., with its B+ rounded out the top four provinces. The federal government, which included the elimination of its exemptions to the CFTA in legislation, dubbed the One Canadian Economy bill by Prime Minister Mark Carney, earned a B. The Canadian Federation of Independent Business argues that the stakes in smoothing over interprovincial trade are high with one 2019 International Monetary Fund estimate determining eliminating barriers would be up to a seven per cent boost to Canadian GDP. Mitton said that could be as much as a $200 billion boost to Canada's economy, $50 billion to B.C. 'We know competition is good for business and it allows them opportunities to expand their markets, hire more people, and invest in their businesses,' Mitton added. Other economists, however, question the size of those estimated gains on the premise that the vast majority of goods and services that move across provincial borders do so without any barriers. 'When we look at what actual trade barriers exist, the list is very small — alcohol sales, some minor trucking regulations, and government procurement policies,' wrote Marc Lee, a senior economist with the Canadian Centre for Policy Alternatives wrote in a February commentary on interprovincial trade. Lee said there is work to do in some areas, such as credential recognition of skilled workers moving from province to province. And there are also risks in the mutual recognition of regulations on industries from province to province. For example, Lee said trucking regulations in geographically flat Saskatchewan might not be appropriate for more mountainous B.C. He argued 'mutual recognition' could result in provinces being forced to accept the least stringent rules for safety, environmental and consumer protection. Read the 2025 State of Internal Trade report . depenner@
CTV News
2 days ago
- Business
- CTV News
Nova Scotia gets high marks in internal trade report card: CFIB
The Nova Scotia flag flies next to the Canadian flag. (Source: Jonathan MacInnis/CTV News Atlantic) The Canadian Federation of Independent Businesses (CFIB) is giving Nova Scotia the highest mark in its report card on internal trade while the other Maritime provinces received more mixed evaluations. CFIB is an advocacy group for small and medium-size businesses with 100,000 members. Its 2025 State of Internal Trade report looks at ongoing efforts to remove interprovincial trade barriers. 'While progress to date has been encouraging, we also have seven different jurisdictions taking seven different approaches to mutual recognition. That kind of patchwork can wind up recreating the barriers it was meant to knock down,' said Ryan Mallough, vice-president of legislative affairs for CFIB, in a news release. 'The premiers and the prime minister have instructed the Committee on Internal Trade to reach a pan-Canadian mutual recognition agreement for December.' The report broke down its grading of the provinces in three categories: Canadian Free Trade Agreement exceptions (40 per cent of the grade) Select barriers to internal trade (20 per cent of the grade) Status of items from reconciliation agreements (40 per cent of the grade) There was also a bonus indicator for provinces that accept the regulations and standards of other regions. Nova Scotia, which introduced the Free Trade and Mobility within Canada Act last February, received an overall 'A' (9.4 out of 10) grade in the report. It scored an 'F' (2.3) for agreement exceptions, a 'D' (5.9) for select barriers and an 'A-' (8.9) for reconciliation agreements. It also got an 8.5 for its bonus indicator. Nova Scotia scored the highest on the report card with Ontario and Manitoba rounding out the top three with an 'A' (9.2) and an 'A-' (8.9), respectively. Prince Edward Island landed in the middle of the pack with a 'B' (7.8). It got an 'F' (3.1) for agreement exceptions, a 'D' (4.7) for select barriers and an 'A-' (8.8) for reconciliation agreements. It scored a one for its bonus indicator. New Brunswick scored two placements below P.E.I., earning a 'C' (6.6). It got a 'D' (4.8) for agreement exceptions, a 'D' (4.7) for select barriers and a 'B+' (8.5) for reconciliation agreements. It also got a one for its bonus indicator. All three territories (Yukon, Nunavut and Northwest Territories) scored the lowest overall with a 'D' grade.
CTV News
2 days ago
- Business
- CTV News
CFIB says internal trade barriers coming down, but patchwork could create challenges
Prime Minister Mark Carney, front left, walks alongside Francois Legault, Premier of Quebec, as they are joined by first ministers and Minister of International Trade and Intergovernmental Affairs and President of the King's Privy Council for Canada Dominic LeBlanc, and Minister of Transport and Internal Trade Chrystia Freeland. THE CANADIAN PRESS/Sean Kilpatrick TORONTO — A new report by the Canadian Federation of Independent Business says progress has been made on removing trade barriers within Canada, but it adds that the patchwork of approaches could create new issues. Ryan Mallough, CFIB's vice-president of legislative affairs, says the progress has been encouraging, but there are also seven different jurisdictions taking seven different approaches to mutual recognition. He says the patchwork could wind up recreating the barriers it was meant to knock down. One study estimates that existing internal trade hurdles cost the economy some $200 billion a year. The federal and provincial governments have been working to remove internal trade barriers in the face of U.S. tariffs imposed by President Donald Trump. Bill C-5, the omnibus bill that reduces federal restrictions on interprovincial trade and also speeds up permitting for large infrastructure projects, became law on June 26. This report by The Canadian Press was first published June 30, 2025.
