CCRVC urges Minister Freeland to adopt changes to Small Business Tax in 2021 Budget

March 23rd, 2021

The Honourable Chrystia Freeland
Minister of Finance
House of Commons *
Ottawa, Ontario,
Canada
K1A 0A6

Re: Upcoming Federal Budget and Assistance to Small Private Campground Owners

Dear Minister,

On behalf of the Canadian Camping and RV Council (“CCRVC”), I would like to thank you and your Team for your leadership during the COVID-19 pandemic. You and your peers in the Federal Government have performed admirably between managing public health interests and limiting the economic toll during the past year and we applaud your efforts during this most difficult period.
We have been made aware that the Federal Budget will be announced on April 19th and I would like to take this opportunity to respectfully urge you to consider adopting the following recommendations from the Standing Committee on Finance that would finally address our ongoing tax threat concerns with the Canada Revenue Agency namely:

*Recommendation 117

Amend the Income Tax Act to clearly define that income earned by private campgrounds who employ fewer than five full-time employees year-round be considered as “active business income” for the purpose of determining their eligibility for the small business deduction.

*Recommendation 118
Review the rules defining passive and active business income, including the five employee rule for small businesses.

Nearly 75% of our 2347 Private Campgrounds are at financial peril simply because they employ less than 5 employees full-time year-round as seasonal businesses and are closed for the winter months and we are especially encouraged by the committee’s recommendation to review the 5-employee rule for small businesses that would without a doubt qualify a seasonal business such as a Private Campground for the small business tax deduction.

For over 4 years, CCRVC has been engaging Ministers, Senators and MPs, Policy Makers and their staff representing constituencies across Canada to address our tax concerns with the Canada Revenue Agency on whether small family operated private campgrounds qualify for the small business tax deduction or not. With FINA’s recommendation’s, we are optimistic that the threat to our financial viability will be addressed by the Finance Department in the upcoming 2021 Budget.

The Canadian RV and Camping Industry contributes over $6.2 billion to the economy, employs 67,000 and contributes over $3.4 Billion to Canadian Tourism and we have seen our popularity boom amongst consumers this past year during the COVID-19 pandemic. The importance of our Private Campgrounds as a destination to enjoy and recreate has been amplified as more and more Canadians looked at camping for the 1st time as a safe and healthy way to get outdoors and vacation responsibly.

Campgrounds offer an opportunity for families to spend time together, to create lifelong memories, and to discover Canada’s natural landscape and they have never been as important to the well being of Canadian families as they are today.

The threat that a Campground Owner may be re-assessed or denied the SBD in any given year has resulted in businesses holding back infrastructure investments and improvements and hiring additional seasonal staff at a time when the camping industry has become more important than ever before. We are asking for your help to finally address our Industry’s ongoing #1 concern in the upcoming Federal Budget so that we can better provide for Canadian Campers.