Resolution

WHEREAS many family farms have recognized the tax advantage of forming a company;

WHEREAS many family farms have formed Companies (small corporations) in the last 25 years;

WHEREAS a small farm corporation is a legal entity of its own and not currently eligible for the Lifetime Capital Gains Exemption;

WHEREAS selling shares of a company to a third party in order to access the Capital Gains Exemption is an administrative nightmare resulting in huge legal fees and red tape burden;

BE IT RESOLVED that APAS advocate for changes to the Income Tax Act to provide shareholders in a farm company the ability to transfer their personal Lifetime Capital Gains Exemption, in whole or in part, to the small business corporation when selling land.