The Agricultural Producers Association of Saskatchewan (APAS) is calling on the federal government to halt the proposed changes to the capital gains tax.
In June, the Canada Revenue Agency (CRA) began collecting on an inclusion rate that increased from 50 per cent to 67 per cent for corporations, trusts, and individuals with capital gains of more than $250,000.
Last week, the federal government said the CRA will continue to administer the higher tax rate, even though it hasn’t passed in Parliament, which is prorogued until March 24.
Retiring farmer Garry Meier said the proposed changes could mean passing his land down to his children would cost an extra $200,000 in taxes.
“It’s a pretty significant hit to the retirement plan,” Meier said in an interview with CTV News.
Bill Prybylski, president of APAS, said the proposed tax change is causing uncertainty for many farmer’s succession and retirement plans.
“Not knowing where the level is actually going to end up being significantly affects their planning, and it’s a huge amount of dollars in a lot of cases,” Prybylski said.
He said APAS wants to see the changes to the capital gains tax reversed until it is discussed in Parliament. He also said farmers want clarity and consultation.
“Producers really have not been consulted, really don’t know what the changes are and how they affect their operations,” Prybylski said.
CTV News reached out the federal government for comment, but did not get a response by deadline.
