Ottawa, April 7, 2022 – CALU took note of the various measures included in Budget 2022 of interest to leaders in the life insurance and financial advisory industry – notably in relation to rules to facilitate intergenerational business transfers following the legislative passage of Private Member’s Bill C-208 last June.
Budget 2022 announced a consultation process for stakeholders to share their views as to how the existing rules could be strengthened to protect the integrity of the tax system while continuing to facilitate genuine intergenerational business transfers. The government indicated it would bring forward legislation, as necessary to address this specific issue, which could be included in a bill to be tabled in the fall after conclusion of the consultation process.
For many months, CALU has encouraged the government to collaborate with key stakeholders on implementing Bill C-208 to facilitate genuine intergenerational transfers of shares in small businesses while preventing tax avoidance that undermines the equity of Canada’s tax system. “We are delighted that the government is now making this issue a priority and looking to eliminate the uncertainties that remain in the framework” said Guy Legault, President and CEO of CALU.
CALU also notes the absence of any measures in Budget 2022 to address the flaws in the delivery of long‐term care that COVID-19 exposed. We believe the government missed an opportunity to address these issues now before the system becomes overwhelmed by the demands of an aging population. We believe serious consideration should be given the to development of a new Canadian policy framework and strategy for long‐term care, leveraging federal‐ provincial cooperation, other countries’ successes, and the existing model of collaboration.
Additional information and reactions from CALU on Budget 2022 will be provided in the near future.
The Conference for Advanced Life Underwriting (CALU) is Canada’s professional association for leaders in the life insurance and financial advisory industry. We provide our 600+ members with high-quality education and with opportunities to connect, stay informed and share ideas on how to enhance the financial well-being of Canadians.
Advocacy is an important part of our mandate. Through a strategic partnership with Advocis, CALU speaks on behalf of more than 17,000 member-clients in support of fair and competitive public policies to grow and preserve the financial well-being of Canadians and family businesses.