Small businesses across Canada are still being taxed on their carbon tax rebates, despite a commitment from the former finance minister that they would be tax-free, says the Canadian Federation of Independent Business (CFIB).
The CFIB says it has been informed by the Canada Revenue Agency that the rebate is considered “assistance received by the taxpayer from a government in the taxation year in which the assistance is received” and that it’s subject to income tax.
The federation says the CRA also told it that former Minister of Finance Chrystia Freeland’s announcement last year that the rebate will be tax free and the financial economic statement “were not accompanied by proposed legislative amendments.”…