Evidence and Source Material
Explore the proposed home for the Fairness for Farmers pre-budget submission, current legal facts, and background materials supporting full repeal of Section 31 of the Income Tax Act.
Background
A plain-language evidence hub
Section 31 is the Income Tax Act’s restricted farm-loss rule. It can limit the current-year farm loss some taxpayers may deduct against other income when farming is not their chief source of income. This Resources page brings together the official legislation, campaign background and the proposed home for an approved pre-budget submission.
Fairness for Farmers
Pre-Budget Submission
Proposed submission structure
Pre-Budget Submission
Section 31 of the Income Tax Act puts Canadian farmers, horse owners, breeders and equine operators at a disadvantage by restricting their ability to deduct legitimate business losses. This outdated rule limits investment, reduces cash flow and makes it harder for Canadian agricultural and equine businesses to grow. Repealing Section 31 would restore tax fairness, encourage investment, protect rural jobs and help keep Canada’s horse industry competitive.
Get the key facts
Key facts and background
Current legislative figures are linked directly to their official source. Campaign and economic figures should be published only after final approval.
$17,500
Maximum amount under the current Section 31 formula
20 / 3 years
A restricted farm loss may generally be carried forward / back
Full repeal
The campaign's single policy recommendation