Feds clarify new tax rules around family businesses

The federal government has clarified rules around intergenerational transfers of shares in a small business. The clarification came after push back from business organizations, including the national chamber network.

The change will help businesses with succession planning, and make it easier for children and grandchildren to carry on with the company. Bill C-208 was passed earlier this week to “support family-run Canadian small business, protect the tax system and ensure everyone pays their fair share,” states the federal government’s news release.