Halifax – Geoff Regan, Minister of Fisheries and Oceans and MP for Halifax West, on behalf of Prime Minister Paul Martin, today announced the extension of the lifetime capital gains tax exemption to all Canada’s fishers.
“Canada’s fishers play an important role in the economy of our coastal communities, and the Liberal government is committed to ensuring they have the means they need to succeed,” Mr. Regan said.
The Liberal government will amend the Income Tax Act to make transfer of a fishing enterprise, from one qualified fisher to another, eligible for the lifetime capital gains exemption for small business. Furthermore, we will allow the tax-exempt transfer of a fishing enterprise from one generation to another, with no maximum limit, as is currently the case with farms and small businesses.
Today’s announcement follows the Liberal government’s December 19 increase of the lifetime capital gains tax exemption to $750,000 from $500,000. This means that Canadian business-owners who sell shares of a qualifying corporation, or farmers and fishers who sell their enterprise for a profit, can receive the first $750,000 of their gain tax-free.
This initiative builds on significant measures already taken by the Liberal government to help Canada’s fishing communities and oceans-related industries, including a $250 million vessel-replacement plan for the Coast Guard, sharply increased surveillance and on-board inspection of foreign fleets, and sustained stock recovery initiatives.
We will also continue to aggressively promote a far more effective international management regime, particularly for fish stocks that straddle the 200 mile limit. A constructive tone in recent international meeting is cause for optimism, but the bottom line is that overfishing must stop. So if progress falters, a Liberal government will take whatever action is needed to protect the interests of Canada’s fishers.