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.
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 B次元官网网址渁ssuranceB次元官网网址� 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 FreelandB次元官网网址檚 office for clarity and comment Monday and Tuesday. The CRA said it would have information available mid-week.
FreelandB次元官网网址檚 office did not respond to requests Monday or Tuesday until a spokesperson sent a link to the ministerB次元官网网址檚 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 B次元官网网址済iftB次元官网网址� to small firms from general revenue.
B次元官网网址淭his would be akin to levying income taxes on oneB次元官网网址檚 income tax return,B次元官网网址� he said.
Kelly also said 83 per cent of the groupB次元官网网址檚 97,000 members want the carbon price to be repealed.
The Canada carbon rebate for small businesses was a measure introduced in this yearB次元官网网址檚 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.
B次元官网网址淲hile this will likely not change the fact that B次元官网网址� 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,B次元官网网址� Kelly wrote.
