Finance Minister Morneau stated that the government will proceed with the previously announced proposals regarding increased taxation of investment income, except that the new measures will not apply to a $50,000 annual threshold on passive income (approximately 1 million in investments based on nominal rate of return of 5 per cent). He also confirmed that the measures targeting passive income will not apply to past investments and the income earned from those investments. Further, the government has commented that incentives will be in place so that venture capital and angel investors can continue to invest. Draft legislation with respect to this revised tax rule is expected to be part of the 2018 Federal budget.
We are hopeful that policy makers are putting forth the effort to listen to diverse voices, taking the time to meet with us to understand our members' pre-occupations and ultimately to come up with a solution that meets the Minister's goals while addressing the unintended consequences for the agricultural industry.
In the meantime, we will continue to advocate on behalf of agriculture producers in the province and ensure that our members' voices are represented to the best of our ability.
For more information about how the tax announcements specifically impact agricultural producers and may affect you, please visit
UFA Government Relations