Message from National Allied Golf Association - Action Required

February 4, 2016 For Immediate Release
Federal Budget Pre Consultation - Ensure the Minister of Finance is aware of the need for tax fairness for Canada's golf industry

Dear Golf Industry Representative:  

The National Allied Golf Associations (NAGA) has been focused on ensuring our industry's request for tax fairness it is a priority for the new Government. We are now fast approaching the 2016 Budget, and NAGA has been working diligently to make sure golf is on the agenda.   We need your help to make sure our voice is heard loud and clear, and this can easily be done now that the Minister of Finance has officially launched Pre-Budget consultations.

This provides an open opportunity for all Canadians to have their voices heard, and we've found that specific aspects of the Minister's call for responses can be linked to NAGA's tax fairness issue. We have formatted a response (below) that can be submitted on the official online Pre-Budget consultation site, www.budget.gc.ca/2016/prebudget-prebudgetaire/consultation-en.html. The prepared text can be used to answer the first question, which reads: In your opinion, how can we better support our middle class? All you need to do is copy and paste the text below as your question #1 response. It succinctly connects tax fairness for golf and the middle class. It is important to note that you do not need to answer all four of the questions.  

In 5 minutes, you can help in making sure the golf industry is represented, and we hope we can count on you to get involved!  

Sincerely,  

Elizabeth Di Chiara
Chair, National Allied Golf Association

The National Allied Golf Associations (NAGA) is a national golf organization dedicated to improving all sectors of golf in Canada. Formed in 1999, NAGA’s objective is to work cooperatively together as industry leaders ensuring a strong future for golf in Canada

Question 1 Response  

Canada's more than 2,300 golf courses are owned and operated primarily by small business owners, and the hundreds of thousands of Canadians who are employed in the industry represent a significant middle class constituency. Despite this, Canada's golf industry continues to be hobbled by decades-old tax legislation that discriminates against it.

In order to encourage economic growth, fairness, and to help the middle class, the National Allied Golf Associations (NAGA) recommends that the government amend the Income Tax Act (ITA) to allow business people entertaining clients the same 50% deduction that all competing hospitality and entertainment industries have and deserve. This recommendation would apply to greens fees and cart rentals, not golf memberships.

Due to a 1971 tax reform, the Canada Revenue Agency does not allow clients to be taken to the golf course, as per section 18.1 of the ITA, despite golf being the most effective activity for doing business. This influences business people to avoid golf on the basis of taxation alone.  The role of the ITA includes the principle of fairness and it should not be discriminating against the country's golf industry in this way.

To Canada's golf course operators and over 300,000 who derive employment from Canadian golf, facing the most competitive marketplace in our industry's history, this unfair and antiquated tax hindrance is no longer a tolerable disadvantage. NAGA and its member golf associations are calling on the Federal Government to correct this outdated problem and establish tax fairness for Canada's golf industry and the business community who should be leveraging golf to increase sales.   The Federal Government has committed to an agenda that supports small business and the middle class. However the Canadian golf industry remains encumbered by this flaw in the ITA and still cannot compete fairly with all the other industries which are granted the tax deduction when clients are entertained in their facilities.  It is essential the Government support Canada's small business owners, such as our golf industry, as we are critical contributors to the future success of the country's economy and middle class.