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ARTICLE · 27 JULY 2021

Tax Relief For Intergenerational Transfers In Force…For Now

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The Federal Government has backtracked on its plan to delay the application of Bill C-208, a private member's bill aimed at facilitating intergenerational transfers of small businesses and farms.

CanadaTax
Jared Mackey
Jared Mackey
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The Federal Government has backtracked on its plan to delay the application of Bill C-208, a private member's bill aimed at facilitating intergenerational transfers of small businesses and farms. Until at least November 1, 2021, owners of small businesses and farms can rely on the relieving legislation for genuine intergenerational transfers.

Bill C-208 received Royal Assent and became law on June 29, 2021. The next day, the Government put the legislative amendments in limbo with a news release announcing its intention to delay the application of the Bill until the start of next year, January 1, 2022. The Government had previously expressed concern that the Bill could allow for unintended and aggressive tax avoidance in some situations. It was expected, at the time, that the Government would use the period of delay to introduce additional or revised legislation on this issue.

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