Mr. Speaker, throughout the consultation period the government received feedback on the complexity of the proposed measures and potential unintended consequences. Over 21,000 written submissions were received by the Department of Finance Canada. The government also received feedback that the measures could create uncertainty in relation to how amounts received from a family business would be taxed. To address these concerns, the government will simplify the proposed measures with the aim of providing greater certainty for family members who contribute to a family business.
Specifically, the government will work to reduce the compliance burden with respect to establishing the contributions of spouses and family members including labour, capital, risk, and past contributions; better target the proposed rules; and address double taxation concerns.
As proposals are not yet finalized, it is not possible to project the compliance and enforcement costs for the Canada Revenue Agency.