Finance Department Faces Grilling by MPs Over Tax Rules in Sale of Family Businesses

Finance Department Faces Grilling by MPs Over Tax Rules in Sale of Family Businesses
Finance Minister Chrystia Freeland responds to a question during a news conference in Boisbriand, Que. on July 19, 2021. The Canadian Press/Paul Chiasson
The Canadian Press
Updated:

OTTAWA — Parliament’s legal expert says the Liberal government waded into uncharted territory when it decided to delay enacting tax rule changes on the sale of small businesses between family members.

A Conservative private member’s bill passed in late June rewrote part of the Income Tax Act so business owners could pass on companies to their children or relatives at the same tax rate as if they were selling to a stranger.