National

Chrystia Freeland says carbon rebate for small businesses will be tax-free

Darpan News Desk The Canadian Press, 13 Nov, 2024 10:58 AM

Deputy Prime Minister and Finance Minister Chrystia Freeland says the Canada carbon rebate for small businesses will be tax-free.

In a statement posted to X late Tuesday, Freeland clarified the parameters of the program after an advocacy group for small business raised concerns that the rebate would be a taxable benefit.

The Canada Carbon Rebate is delivering $2.5 billion directly to small businesses.

This rebate will be tax free.
— Chrystia Freeland (@cafreeland) November 13, 2024

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, posted on X soon after that post that he had received a call from Freeland, who offered "assurance" that the rebate would be tax-free.

In a letter to Freeland Nov. 6, the CFIB said it had initially been told by the Canada Revenue Agency the rebate would be tax-free, but was subsequently told by the Finance Department that the rebate was actually taxable.

The Canadian Press contacted both the CRA and Freeland's office for clarity and comment Monday and Tuesday. The CRA said it would have information available mid-week.

Freeland's office did not respond to requests Monday or Tuesday until a spokesperson sent a link to the minister's social media post just after it was posted Tuesday night.

In his letter to Freeland last week, Kelly said the rebate is for taxes paid by small firms, not a "gift" to small firms from general revenue.

"This would be akin to levying income taxes on one’s income tax return," he said.

Kelly also said 83 per cent of the group's 97,000 members want the carbon price to be repealed.

The Canada carbon rebate for small businesses was a measure introduced in this year's federal budget, in which $2.5 billion of carbon price revenue would be paid back to some 600,000 small and medium-sized businesses.

In his letter, Kelly commended Freeland and thanked her for her work in getting the rebate done.

"While this will likely not change the fact that ... our members now oppose the carbon tax, the rebate will help government meet its long-outstanding promise to small firms and restore some degree of revenue neutrality," Kelly wrote.

Prev Next

MORE National ARTICLES

5 million adults without primary care, surgeries returning to normal: CIHI report

Seniors 65 years and older are more likely to have access to a family doctor or nurse practitioner than younger adults between 18 and 34, and access to primary care is highest in Ontario and lowest in Nunavut, the CIHI report released Thursday says.

5 million adults without primary care, surgeries returning to normal: CIHI report

Man pleads guilty to multiple robberies

A man has been sentenced to more than two years in prison as well as receiving a lifetime firearms ban after pleading guilty to multiple robberies in the Lower Mainland. Surrey Mounties say Jaden Kahnapace pleaded guilty earlier this year to three robberies in 2021 that all happened within the span of two weeks.

Man pleads guilty to multiple robberies

Seizure of guns & illicit drugs in Penticton

Mounties in Penticton say a search warrant has led to the seizure of several guns as well as cash and suspected illicit drugs. R-C-M-P say it also resulted in the arrests of four people linked to the home in the one-thousand-block of Government Street.

Seizure of guns & illicit drugs in Penticton

Trudeau announces massive drop in immigration targets as Liberals make major pivot

The federal government is slashing immigration targets as Prime Minister Justin Trudeau admits the government did not get the balance right following the COVID-19 pandemic. The government had targeted bringing in 500,000 new permanent residents in both 2025 and 2026.

Trudeau announces massive drop in immigration targets as Liberals make major pivot

Groups say Jewish students, staff at University of B.C. face hostile environment

A coalition of Jewish organizations says it is "deeply alarmed" by a rising tide of antisemitism at the University of British Columbia in recent weeks. A joint statement sent out by six groups, including the Jewish Federation of Greater Vancouver and Canadian Jewish Advocacy, says Jewish staff, students and faculty members at the university have faced "an increasingly hostile environment" since the start of the academic year.

Groups say Jewish students, staff at University of B.C. face hostile environment

Vancouver begins process of closing homeless encampment at Crab Park

Vancouver's park board says it has begun the process of closing the homeless encampment that has been in place at a local park since 2021. The park board says it is talking directly with each of the seven people still in the camp located in the designated area at Crab Park, with the goal of closing the encampment and returning the area to "general park use" by Nov. 7.