Resolution

WHEREAS under the current tax rules, businesses sold within the family (“non-arm’s length”) are treated as dividends while business sold to an entity outside the family (“arm’s length”) are treated as capital gains and provided an exemption;

WHEREAS tax treatment of a capital gain as opposed to a dividend can be the difference of up to $300,000 in tax savings on a $1,000,000 sale;

WHEREAS there is a private member’s bill currently before Parliament that would amend the Income Tax Act to address this unfair situation;

BE IT RESOLVED that APAS write to the Prime Minister, the Federal Minister of Finance and Members of Parliament, requesting their support for Bill C-274: Transfer of small business, family farm or fishing operation.