News Releases

News Release - Manitoba

June 3, 2014

PROPOSED LEGISLATION WOULD CREATE JOBS, SUPPORT ECONOMIC GROWTH: MINISTER HOWARD


Proposed Budget Bill would include New Tax Credit to Support Business Succession Planning: Minister Oswald

Proposed legislation required to implementBudget 2014, includingnew tax credits that would support the creation of good jobs, was introduced today by Finance Minister Jennifer Howard.

“Our budget bill includes new and expanded tax credits to help create good jobs for Manitobans,” said Minister Howard.  “A new tax credit is being introduced to support business succession planning, helping retiring entrepreneurs who want to transfer their business to a new owner.”

The proposed new Employee Share Purchase Tax Credit would offer new owners, including current employees, support to buy in and own a portion of a business to support business growth and avoid business closures.  Those who buy shares, such as current employees, from a registered employee share ownership plan would qualify for the 45 per cent tax credit.

The proposed tax credit would alsosupport the development of worker co-operatives and employee participation in their employer’s business.

“The new Employee Share Purchase Tax Credit will support business expansion and help avoid small businesses closing down and putting Manitobans out of work when an owner retires, thereby keeping good jobs in Manitoba,” Jobs and Economy Minister Theresa Oswald said.

In addition, the Manitoba government's Business Succession Resource Centre is now working with entrepreneurs to help them transfer their business to new owners as they retire. The centre showcases resources and business information specific to business succession including workshops, seminars and guides, business counselling services and access to industry professionals. 

Minister Howard also noted the budget implementation and tax statutes amendment act (BITSA)would also provide enhanced measures that would protect taxpayers from misleading promises from tax discounters, who may knowingly offer larger tax returns that are later reduced, leaving the taxpayer to pay back the difference.

The Canada Revenue Agency and the Province of Manitoba allow tax preparers to provide clients with atax refund before filing a return. To ensure consumer protection for clientsof tax discounter services, legislative amendments are being introduced that would provide the province with the authority to withhold or withdraw the licences of tax discounters who knowingly or repeatedly file inaccurate tax credit claims.

The proposed BITSA legislation would also support other key government priorities in Budget 2014 to create jobs and support steady economic growth including:

  • enhancing the Small Business Venture Capital Tax Credit and the Community Enterprise Development Tax Credit to 45 per cent from 30 per cent along with other tax credit enhancements to help Manitoba entrepreneurs grow their business and create jobs;
  • supporting the hiring of apprentices and journeypeople with an improved tax credit that offers more financial incentives with an easier application process for Manitoba employers;
  • renewing other economic tax credits that were set to expire this year including the Manufacturing Investment Tax Credit; and
  • putting into law annual reporting requirements for government’s record investments in core infrastructure, including a requirement that commitments carry forward to future years in the
    five-year, $5.5 billion core infrastructure plan.

For more information on the Manitoba Business Succession Resource Centre, visit www.gov.mb.ca/jec/emb/smbus/succession.html.

- 30 -