Do Hutterite Colony Farmers have Advantageous Tax Status?


May 31, 2018 :: Gord Tait
Moderated by Susan Giffen

Hutterites are taxed under section 143 of the Income Tax Act. Colonies are taxed as if they were a trust so the collective income of the community gets allocated to colony members who are 18 years of age and older Section 143 does not allow Hutterite colonies to allocate income to community members under the age of 18 while other farmers are allowed to do so. For example, a regular farmer can pay his child who is under the age of 18 up to $ 10,000 tax free, while Hutterites cannot. This is a arguably a disadvantage for Hutterite communities where both male and female young people usually join the colony workforce at age 15.

It wasn’t until 1997 that colonies were allowed to allocate income to their spouses while other farmers have had that ability for many years.  Nor do they collect premiums from the Canada Pension Plan or receive social assistance. The income allotted to individuals gets reported on personal income tax returns and colony members pay taxes at the applicable personal tax rates.
 
Hutterites contributes more than 2 billion dollars to the annual economy of Canada. Do they pay taxes?  Yes, and the speaker will explain in more detail why they often pay more than their fair share.

Speaker: Gord Tait

Gord Tait, CPA, CA, is a Partner and Business Advisor with MNP, focused on client service delivery to over 300 Hutterite colonies in Lethbridge, Red Deer, Grand Prairie, Saskatoon, Swift Current, Brandon, Portage and Winnipeg. Prior to joining MNP, Gord operated a family business working exclusively with Hutterite colonies.

Gord began his career at MNP in 1999 as the Regional Managing Partner for Lethbridge. Under his leadership, the region experienced tremendous development, growing from 11 to more than 100 team members in only eight years. As former Director of Hutterite Services, Gord developed recruitment strategies, cultural awareness programs and focused on new products and services for Hutterite clients that go beyond MNP’s traditional services. Gord is a Chartered Professional Accountant (CPA) and a Chartered Accountant (CA) who received his Bachelor of Commerce degree with honours from the University of Saskatchewan.

Moderator: Susan Giffen

Date: Thursday, May 31, 2018
Time: Doors open 11:30 am, Presentation 12 noon, buffet lunch 12:30 pm, Q&A 1 – 1:30 pm
Location: Royal Canadian Legion (north door) 324 Mayor Magrath Dr. S. Lethbridge
Cost: $14 buffet lunch with desert & coffee/tea/juice or $2 coffee/tea/juice. RSVP not required


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