Golf businesses will be pleased to know that the latest tax being pondered by the federal government does not target small businesses, at least not financially, but conceivably, it does mean a lot more paperwork for proprietors.
Remember those people the provincial governments in Ontario and Alberta, not to mention the others that are likely soon to follow, said needed a better wage to make ends meet, so they imposed an eventual $15-an-hour minimum wage?
You know, the people who the federal government felt weren’t saving enough for retirement, so they “enhanced” CPP by increasing contributions by both employers and employees?
Those very same people who need more to live and don’t have enough money to save for retirement are now going to get dinged for employee discounts they might receive. On the surface, governments are concerned for them, but they sure can’t catch a break.
You can read more in this story from CBC News.
This comes after the Canada Revenue Agency posted a document on its website that employee discounts should be treated as a taxable benefit.
The ensuing uproar led the government to say it would issue a clarification on the matter and that was to say that retail workers were not being targeted. There still appears to be something in the works, perhaps a broader-based tax on employee discounts, which we’ll apparently find out soon enough.
Conceivably, a golf course employee who might get a 25 per cent discount for that burger he or she wolfed down before a shift started would be taxed.
Somebody who bought a couple of shirts and a cap in the pro shop at a reduced price for employees could face extra tax as could someone who played a round at a special price for workers.
Meanwhile, the employer sill have to keep track of how much each employee saved with such discounts over the course of the year. If this stands, it will kick in for the 2017 tax year, so prepare to spend a lot of extra time on bookkeeping if it goes through.
We’ll wait and see, but this comes on the heels of proposed tax reforms that many believe will put an extra burden on small businesses. In a recent GNN Poll, we asked if tax reforms currently being proposed by the federal government would unfairly penalize golf businesses. A strong majority, of 84 per cent, said yes.
Small businesses such as golf courses/ranges etc., have every reason to be concerned. The government has already said it’s not backing off on the tax reforms and it’s quite possible a slightly altered version of what we’ve seen could affect employee discounts.
The pressing question as those who can’t afford it get hit for more is when when it end?