Contractor says that his business would have gone out of business years ago if Morneau's plan had been in place when he acquired two other firms
October 6, 2017 by canadiancontractor
Contractors are learning more about the Trudeau government’s plan to “reform” methods that small businesses use to try to protect their profits from the taxman. And we have yet to receive one email or online comment in favour of the proposals.
“As a small business owner I wish to express my outrage on this attack on small businesses. I will give you an example of how my company would have been affected if these [proposed new tax] rules were in place 11 years ago. At that time we purchased two small companies using retained earnings accumulated over many years. We had decided to add to our company because at that time we had one client representing 80 per cent of our business. If that client had left we would have been out of business.
As it happened the 2007 recession came about right after we made the purchase. It did significant damage to our company and then, in 2011, that large customer did leave us. If we had not purchased those companies with those retained earnings all those years ago we would have gone out of business for sure.
Today we have approximately 25 employees and business is always difficult. But if this attack on small business had occurred all those years ago – and we were not allowed to use those retained earnings that we had accumulated over the years – we would not be here today.”