On the eve of launching the 2016 camping season, family-run campgrounds across Ontario are receiving surprise tax bills that put the entire Canadian camping tradition at risk. The Canada Revenue Agency (CRA) has decided that some campgrounds are too small to qualify for the small business tax deduction, demanding tax payments at rates that are greater than those of billion-dollar businesses.
“Camping is about celebrating the great outdoors and is an integral part of our nation’s history and our identity as Canadians,” said Alexandra Anderson, Executive Director of Camping In Ontario. “Nearly 5.8 million Canadians go camping each year, along with numerous international visitors who want to experience the natural wonder of our country. We don’t want to believe that it is the CRA’s intention to destroy family-run campgrounds, but that’s exactly what will happen if their decisions are not reversed.”
Campgrounds in Ontario have begun receiving calls and letters from CRA warning them of reassessments in part because they are deemed not to qualify for the small business tax deduction since they employ fewer than five people.
Camping in Ontario – which represents 440 privately-owned campgrounds in Ontario – is working with the Canadian Federation of Independent Business to push the Department of Small Business and Tourism, Finance Canada and the CRA to implement changes that ensure campgrounds are recognized as small businesses and pay the same taxes as other small businesses.
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