OFA wrote to the Honourable Chrystia Freeland (Deputy Prime Minister and Minister of Finance) regarding the Eligibility Requirements for the Canadian Entrepreneurs’ Incentive.

OFA members are deeply concerned about both the proposed changes to the capital gains inclusion rate and the eligibility criteria for the new Canadian Entrepreneurs’ Incentive.

In farm families, it is common for farm businesses to be passed down to the next generation or sold at a below market value to the next generation to keep the farm in the family. The current wording of the eligibility requirements for the Canadian Entrepreneurs’ Incentive would disqualify the next generation of farmers from accessing this incentive, since they do not qualify as founding shareholders.

OFA requested that the government amend the requirements for the Canadians Entrepreneurs’ Incentive to include all farm businesses.

OFA recommends that the Canadian Entrepreneur’s eligibility criteria be amended to include owners of all qualified farm property that meets the criteria set out in Section 110.6 of The Income Tax Act.