Brooks Chamber Demands Action on Tax Change

The Brooks and District Chamber of Commerce is calling on the Federal Government reverse their plan to consider employee discounts as taxable income.

 

According to the Canada Revenue Agency, business owners must now keep track of each item an employee purchases, and tax the dollar amount it was discounted by. This means that if an employee receives a $20 discount on a pair of jeans, he or she will be expected to pay incometax on that $20. Likewise, if a fast food worker receives a free meal during their shift they will be expected to pay income tax on the value of the meal.

 

“The proposed changes will be a nightmare logistically for small businesses” said President-Elect Sarah Bisbee of the Brooks Chamber. “It will be yet another layer of red tape and accounting that continue to strangle small business in this country.”

 

The cost to administer this tax increase is a double whammy for local businesses who are already absorbing the cost of a higher minimum wage. It also effectively eliminates one of the most effective tools local business have for recruiting and retaining employees.

 

“This change really hits small cities like Brooks hard,” said Kyle Franz, the Chamber’s Director of Member Relations. “It is effectively reducing the take-home wages of regular folks, and money we are paying in new taxes is money we are not reinvesting in the local economy. We are calling on the federal government to reverse this decision immediately.”

 

Media Contact:
Kyle R. Franz
Director of Member Relations
Membership@brookschamber.ab.ca / (403) 427-0011

 

 

 

Posted on:
Tuesday, October 10, 2017