OFA fully supports Bill C-208, an amendment to the Income Tax Act (transfer of small business or farm or fishing corporation). This Bill supports OFA’s efforts to help facilitate the transfer of the family farm to the next generation. Bill C-208 will address the current wording within the Income Tax Act that financially penalizes a farmer if they choose to transfer the farm business to family member as opposed to an anonymous 3rd party. This Bill will help reverse the current financial disincentives to transfer the farm business to a child and strengthen the tradition of the family farm in Ontario and Canada. OFA also supports the requirement that the purchaser must not dispose of the shares of the farm business within 60 months of the purchase, to ensure the proposed changes help facilitate the transfer to a child who intends to continue the farm business.
Submissions & Correspondence
OFA letter supporting efforts to facilitate family farm transfers to the next generation
Updated: October 13, 2020