Yukon business owners denounce 'disgusting' tax proposals

Business owners came out in force to an emergency meeting in Whitehorse Thursday evening to denounce proposed changes to federal small business taxes and the finance department's handling of the issue.

"I left the public sector with the conscious act of contributing to the Yukon economy," said Steve Hahn who opened a fly fishing shop two years ago.

"I'm working very hard and making a lot of sacrifices, both financially as well as socially in order to become a success.

But there has to be a dividend that comes on the end game," he said.

Stanley Noel, the chair of the Yukon Chamber of Commerce, told the audience of more than 100 people that federal officials should have been the ones holding the public meeting to explain the complicated proposals.

"How unfortunate it is that I find myself filling that role for the federal government, Department of Finance, as opposed to having them giving you, the business community, the respect and time to do that themselves," said Noel.

Noel also accused the federal government of trying to unfairly pit business owners against the rest of Canadians and ignoring the risks and sacrifices business people take.

Ofelia Andrade, the owner of three Subway franchises in Whitehorse, said the changes are unfair to owners who've worked for years.

"And then when we start breathing easier, they come and chop us our head? This is disgusting," said Andrade.

Whitehorse accountant Mark Pike told the business owners that at least two of the changes will affect many of them.

One will end the practice called income-sprinkling which allows owners to pass some of their income to family members who are in lower tax brackets. Another is that owners will not be able to use un-taxed business income to invest in other businesses.

"That's a point that's really worth making," said Pike.

"Most small business owners, sure they may go and invest in some stocks and bonds, but they're also, they're the people building the fourplex over there or lending money to your family to start their business and get going," he said.

Pike said the end result for the owners is higher taxes.

Yukon's economic development minister Ranj Pillaitold the crowd Premier Sandy Silver will be at a premiersmeeting in Ottawa next week where he will advance the territorial government's support for lowering taxes for business to stimulate the economy.

Prime Minister Justin Trudeau and Finance Minister Bill Morneau are also attending.

Pillai called the proposed changes,"counter-intuitive."

Stanley noted that Yukon MP Larry Bagnell sent a representative to the meeting to take notes which will be passed on to the government.

The Yukon and Whitehorse chambers of commerce circulated a petition from the Canadian Chamber of Commerce at the meeting. It calls on Morneau to extend the consultation period which ends Monday.