(OTTAWA, ON) – Pierre Poilievre, the federal Conservative shadow Minister for Finance, has responded to a new report from the Parliamentary Budget Officer which found that the Liberal government’s latest tax changes will cost local businesses at least twice, or $589 million, as much as the Minister of Finance originally claimed. It could potentially end up costing more than $1 Billion, depending on how the Canada Revenue Agency enforces the changes.
“Today’s report clearly shows that the Liberals’ tax changes are really just a complex tax grab,” said Poilievre. “While Andrew Scheer’s Conservatives are focused on bringing forward solutions that put hardworking people before government, Prime Minister Justin Trudeau is focused on raising taxes to pay for his out-of-control spending.”
The PBO report follows unprecedented criticism of the Liberals’ “income sprinkling” rules from past and current Chief Justices of the Tax Court.
“‘I think it’s going to substantially increase the number of cases that go to the court, because it’s going to be a battle between the CRA and the taxpayers as to what ‘reasonable’ means in various situations,” former chief justice Gerald Rip said in an interview with the Financial Post.
“These complex rules will cost more to administer, enforce, and litigate than they will raise in revenue,” said Poilievre. “Meanwhile, local businesses will be forced to spend more on accountants, lawyers, and taxes instead on hiring workers and serving customers.”
The PBO had to complete three separate scenarios of how the CRA may enforce the changes because analysts were unable to clearly identify the individuals who will be subject to the tax on split income TOSI rules.
“If Justin Trudeau wanted to raise taxes on local businesses and wrap them in red tape at the same time, he has found the perfect policy to do it,” said Poilievre. “If masters- and PhD-level economists at the PBO cannot figure out who will pay what, how will a small family-run burger joint or laundromat do so?”