The Canadian Camping and RV Council (CCRVC) issued a statement Wednesday (March 22) expressing “disappointment” that the 2017 Federal Budget did not include measures to protect private campground members in Canada from economically crippling and retroactive tax increases.”
The decision to keep the tax in place was rendered “even though the Standing Committee on Finance had included a recommendation to have campgrounds classified as an ‘active business’ and therefore qualify for the small business tax deduction (SBD) in their final report to the Finance Minister last December.”
Despite the vast majority of private campgrounds in Canada operating as seasonal, family-owned businesses, the Canada Revenue Agency began to reclassify small campgrounds as not being eligible for the SBD and thus unable to qualify for the same rate of corporate income tax as any other Canadian owned small business would, including motels.
For the past year, stakeholders of the Canadian Camping and RV industry have urged the relevant federal ministers and all MPs across Canada to consider the negative impacts this will have on the thousands of families involved in providing camping facilities and the millions of Canadians who visit private campgrounds on their vacations.
“Leading up to the budget, this government continually reminded us that its focus will be on middle class Canadians,” said Shane Devenish, CCRVC’s executive director. “But the irony here is that while our private campgrounds offer an opportunity for middle-class families to spend time together, create life-long memories and discover Canada’s natural landscape, the private campgrounds themselves are owned and operated by middle-class Canadians and their families.
“While we are deeply disappointed by the government of Canada’s inaction in the budget which now allows CRA to continue to retroactively tax Canadian campgrounds for a 300% increase, seeking relief in the Federal Budget represented only one opportunity available to our members. We remain firmly committed to the issue and our continued dialogue with the Federal Government and CRA in order to reach a much needed successful resolution.”