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Canadian RV, Camping Industry Seeks Tax Reforms for Small Private Campgrounds

Canada’s RV and camping industry members converged on Ottawa this week, advocating changes to what they deem “outdated and inaccurate” tax rules. 

As per a report, on Wednesday, the Recreational Vehicle Dealer Association of Canada and the Canadian Camping and RV Council (CCRVC) held a news conference, urging the federal government to reevaluate the current tax regulations for small private campgrounds.

Current tax rules and request for review

Ellie Abucay-Giammattolo, chair of the CCRVC, explained the issue at hand: “Any small campgrounds which employ less than five employees year-round is classified as ‘specified investment business’ under the Income Tax Act, which carries a 50% tax rate unless the business proves that they’re an active business,” she said.

Impact on small campgrounds and their businesses

Abucay-Giammattolo stated that some campground businesses had been forced to delay infrastructure improvements and new staff hires due to the uncertainty surrounding the tax rate they would be obligated to pay. 

“Worse, we’re now seeing multiple owners actually selling their properties at a time when the camping industry has become more popular, and we desperately need campgrounds now more than ever,” she said.

The camping and RV industry employs 67,200 Canadians from coast to coast and generates CA$3.4 billion in tourism spending, and contributes CA$6.2 billion annually to the economy.

Private campground owners and operators are particularly affected by the tax rules in question. The current regulations can hamper their ability to plan and invest in their businesses, creating a disadvantage compared to larger, year-round campgrounds that qualify for small business tax deductions without issue.

Small, seasonal campgrounds play a vital role in the Canadian camping and RV industry. They offer unique outdoor experiences for tourists and locals and support the thriving camping culture. Enabling these small businesses to flourish will help ensure the continued growth and success of the overall industry.

By addressing these concerns, the federal government has the opportunity to foster growth and success for these small businesses, ultimately benefiting the Canadian economy and supporting the popular pastime of camping.

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KyleDusk
KyleDusk
March 15, 2024 12:17 am

The struggles faced by small private campgrounds in Canada hit not just their growth but rural job opportunities, affecting the industry’s overall economic development. Changing tax laws to ease this burden can spark creativity, boost infrastructural investments, and elevate the camping experience for visitors nationwide.

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Hi, you might find this article from Modern Campground interesting: Canadian RV, Camping Industry Seeks Tax Reforms for Small Private Campgrounds! This is the link: https://moderncampground.com/canada/canadian-rv-camping-industry-seeks-tax-reforms-for-small-private-campgrounds/