Small Businesses Still Being Taxed on Carbon Rebates, Federation Says

Small Businesses Still Being Taxed on Carbon Rebates, Federation Says
The Canada Revenue Agency sign outside the National Headquarters at the Connaught Building in Ottawa is seen on March 1, 2021. The Canadian Press/Justin Tang
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Small businesses across Canada are still being taxed on their carbon tax rebates, despite a commitment from the former finance minister that they would be tax-free, says the Canadian Federation of Independent Business (CFIB).

The CFIB says it has been informed by the Canada Revenue Agency that the rebate is considered “assistance received by the taxpayer from a government in the taxation year in which the assistance is received” and that it’s subject to income tax.