With the RV Industry’s growing popularity with young Millennials and retiring Baby Boomers, it has become increasingly apparent that record RV shipments combined with low campsite vacancy rates means a need to develop new destinations for consumers.
To remain viable, the RV Industry asks to work along with Government policy makers to not only increase the number of Federal, Provincial and Private Campsites available to our consumers, but to help enhance their experience with increased Wi-Fi capabilities, services and infrastructure improvements in RV Parks and Campgrounds. Without these improvements, we risk disenchanted consumers leaving our lifestyle altogether.
The RV and Camping Industry would be most interested in participating in the Parliamentary Outdoor Caucus along with other like-minded groups who conduct business in Canada. We would be grateful to be included in critical discussions that will have impact on the future of the Canadian RV and Camping Industry.
Small Private Campgrounds throughout Canada continue to advocate the Federal Government to endorse change in the current Income Tax Act or enact other legislative measures that clearly distinguish small family run campgrounds with less than 5 full time employees as an “active business” and thus eligible for the small business tax deduction.
Income Tax Act s. 125(7)
A specified investment business is a corporation whose principal purpose is to derive income (interest, rent, dividends and royalties) from property, unless the business employs more than 5 full time employees. Income from property would include rental or leasing income from land or buildings, but would exclude income from renting or leasing moveable property such as machinery and equipment. A specified investment business is not eligible for the small business deduction and the income is taxed in the corporation in the same way that investment income is taxed.
A change in interpretation by CRA in the past 3 years has resulted in a number of small Private Campgrounds denied the Small Business Tax Deduction and re-assessed at an Investment Rate, some retroactively 2-3 years, resulting in a corporate tax rate increase to nearly 50% vs 14%.
The classification of a Campground being assessed as a “Specified Investment Business” is ambiguous and up to arbitrary determination by the Canada Revenue Agency and the issue remains to be the #1 threat to not only Private Campgrounds, but to all RV and Camping Industry Stakeholders.
We are in support of programs such as the The Temporary Foreign Worker Program (TFWP) which allows Canadian employers to hire foreign nationals to fill temporary labour and skill shortages when qualified Canadian citizens or permanent residents are not available. We are encouraged measures announced in budget 2019 to accelerate and efficiently process Canadian visitor’s visas, work and student permits.
We would like to work with the Federal Government to develop additional programs to attract seasonal, part time employees to our remote area private campgrounds.