Chrystia Freeland: Small business carbon rebate will be tax-free
Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.
Article content
OTTAWA — Deputy Prime Minister and Finance Minister Chrystia Freeland says the Canada carbon rebate for small businesses will be tax-free.
In a statement posted to X late Tuesday, Freeland clarified the parameters of the program after an advocacy group for small business raised concerns that the rebate would be a taxable benefit.
Article content
Dan Kelly, chief executive of the Canadian Federation of Independent Business, posted on X soon after that post that he had received a call from Freeland, who offered “assurance” that the rebate would be tax-free.
Article content
In a letter to Freeland Nov. 6, the CFIB said it had initially been told by the Canada Revenue Agency the rebate would be tax-free, but was subsequently told by the Finance Department that the rebate was actually taxable.
The Canadian Press contacted both the CRA and Freeland’s office for clarity and comment Monday and Tuesday. The CRA said it would have information available mid-week.
Freeland’s office did not respond to requests Monday or Tuesday until a spokesperson sent a link to the minister’s social media post just after it was posted Tuesday night.
In his letter to Freeland last week, Kelly said the rebate is for taxes paid by small firms, not a “gift” to small firms from general revenue.
“This would be akin to levying income taxes on one’s income tax return,” he said.
Kelly also said 83 per cent of the group’s 97,000 members want the carbon price to be repealed.
The Canada carbon rebate for small businesses was a measure introduced in this year’s federal budget, in which $2.5 billion of carbon price revenue would be paid back to some 600,000 small and medium-sized businesses.
Recommended from Editorial
-
Carbon tax will hit jobs and incomes
-
Small businesses to receive five years’ worth of carbon rebates
In his letter, Kelly commended Freeland and thanked her for her work in getting the rebate done.
“While this will likely not change the fact that … our members now oppose the carbon tax, the rebate will help government meet its long-outstanding promise to small firms and restore some degree of revenue neutrality,” Kelly wrote.
Share this article in your social network
link