Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Campgrounds, farming and the small business deduction.
Position: General comments provided.
June 9, 2017
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your correspondence about the taxation of small businesses, and for your understanding regarding the delay of this response.
You mention a newspaper article that discusses the taxation of campgrounds. To clarify, the legislation relating to the eligibility of campground businesses claiming the small business deduction has not changed. To help campground operators understand whether they are eligible for the small business deduction, the Canada Revenue Agency (CRA) released a statement explaining how these rules apply to campgrounds. You can find this statement at cra.gc.ca/nwsrm/stmnt/2016/st160823-eng.html.
The concerns you raise about how certain government programs support farming businesses compared to small businesses are tax policy issues. The CRA is responsible for administering the federal Income Tax Act and most provincial tax acts, but it does not write the legislation or determine tax policy. Determining federal tax policy and creating or modifying federal legislation is the responsibility of the Department of Finance Canada. Each province can also develop their own tax policy and related tax legislation.
The CRA recognizes the important role of small and medium businesses in creating jobs and supporting the economy. As part of its commitment to first-class government service, the CRA developed its “Serving You Better” initiative to consult with small and medium businesses to receive feedback on ways to improve its services and programs for these businesses. For more information on the ways the CRA has improved its services to serve businesses better, please go to cra.gc.ca/gncy/srvngbttr/hghlghts-eng.html.
I appreciate the opportunity to respond to your concerns and trust the information I have provided is helpful.
Sincerely,
The Honourable Diane Lebouthillier
Eric Wirag
613.670.9053
2017-069474
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