Under the new government tax proposal launched July 18, 2017, Canadian families looking to sell the family business to their children will be heavily taxed. Selling to an outsider would allow the normal capital gains tax exemption, but selling to their children would not allow the parent to utilize the existing capital gains tax exemption. The capital gains exemption to reduce the tax amount is also being disallowed.
Often, when an outsider consolidate operations as they often do, employees and even children working in the business may be left without jobs.
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