The Canadian Camping and RV Council (CCRVC) has recently been made aware that Canada Revenue Agency (CRA) has reassessed a private campground in Alberta, Canada, as an “Investment Business,” which resulted in having their Small Business Tax Deduction denied and retroactively reassessed for three tax years resulting in a 300 percent increase in their tax bill.
CCRVC is working closely with the affected campground and is seeking further clarification from the CRA. This move from the CRA against a new campground came as a surprise as the CCRVC had been informed by the Minister of Small Business and Tourism’s office that no more “legitimate” campgrounds would be denied the Small Business Tax Deduction by the CRA in a meeting. Despite their assurances, it appears that Private Campgrounds may still be targeted by the CRA.
CCRVC along with the RV Dealers Association of Canada has lobbied the CRA and the federal government for the past 2 years to try to get the current Income Tax Act changed and to provide clarity for private campgrounds that employ less than five full-time employees with hopes to eliminate the subsequent threat of being reclassified a passive “investment” business.
CCRVC is asking Canadians to contact their MP to discuss the impact of this tax policy, and to solicit and obtain their MP’s support to discuss this directly with the Minister of Finance Bill Morneau to recommend to that campgrounds should be considered to be an “active” business.
