Backing off on tax plan?

Photo: BC Gov't

B.C.'s finance minister says there are rumours the federal government will back off on parts of its proposed tax reforms for small business that have elicited anger across the country.

Speaking to members of Vancouver's board of trade, Carole James says she would be surprised if the federal government did not make changes in light of the backlash since unveiling its tax plans over the summer.

James says she has no inside knowledge of what the federal government is doing, and learned of the possible tweaks through discussions with members of B.C.'s business community.

The minister says more consultation is needed to avoid unintended consequences that could hurt small business owners — the backbone of B.C.'s economy.

The complaints zero in on plans to eliminate several tax incentives designed for private corporations.

Prime Minister Justin Trudeau has said the tax system unfairly encourages wealthy Canadians to incorporate to avoid paying their fair share of taxes, and he has so far stood his ground in resisting the outcry against the proposal.

Federal Finance Minister Bill Morneau has said he is listening to feedback and is open to making changes following a 75-day public consultation period that wraps up early next month.