The Canadian Camping and RV Council (CCRVC) reported that the Canada Revenue Agency (CRA) has reassessed a private campground in Alberta as an “investment business,” which resulted in having its small business tax deduction denied and retroactively reassessed for three tax years resulting in a 300% increase in their tax bill.
The CCRVC is working closely with the affected campground and is seeking further clarification from the Canada Revenue Agency (CRA). This move from the CRA against a new campground came as a surprise as the Canadian Camping and RV Council (CCRVC) had been informed by the Minister of Small Business and Tourism’s office that no more ” legitimate” campgrounds would be denied the small business tax deduction by the Canada Revenue Agency in a meeting.
Despite their assurances, it appears that private campgrounds may still be targeted by the Canada Revenue Agency, according to RVDA of Canada.
CCRVC along with the RVDA of Canada has lobbied the CRA and the federal government for the past two years to try to get the current Income tax act changed and to provide clarity for private campgrounds that employ less than five full time employees with hopes to eliminate the subsequent threat of being reclassified a passive “investment” business.