How could the tax law disparity affecting thoroughbred racing impact Ontario?
Ontario's racing sector may face job losses as tax laws push trainers south The disparity in Canadian tax laws, specifically Section 31, which caps annual loss writeoffs at $17,500, is prompting top thoroughbred trainers like Kevin Attard to consider moving operations to the United States. This financial pressure encourages horses, breeders, and buyers to head south, which industry leaders fear will cause Woodbine Racetrack in Ontario to continue dropping from approximately 1,900 horses to roughly 1,600. This reduction in racing activity could negatively affect the estimated 30,000 to 50,000 people in Ontario who rely on the racing industry for seasonal or part-time work.
- Effect
- Strong negative
- How direct
- Stated in the reporting
- When
- Over the long term
- The story
- Gone quiet
How it reaches Ontario
-
Kevin Attard, a thoroughbred trainer, is considering moving his business to the United States due to Canadian tax laws. Attard currently operates horses at Woodbine Racetrack in Toronto and rents a farm in Caledon. The issue centers on Section 31 of the Income Tax Act, which caps annual loss writeoffs at $17,500 for horse owners whose main income is outside farming.
The full event1independent outlet -
The disparity between Canadian tax laws and the U.S. system, where owners can write off 100 per cent of eligible racehorse costs, is forcing top trainers and buyers to consider shifting a bigger portion of their operations to the U.S. This trend is causing fear that the number of horses at Woodbine Racetrack in Ontario will continue to drop. Industry leaders estimate that the tax limitations are leading to fewer horses and races, which could negatively impact the estimated 30,000 to 50,000 people in Ontario who make a living or find seasonal/part-time work in the racing sector.
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- winnipegfreepress.com Oct 22
-
company
Everything about Ontario
Tap any step to see the evidence behind it.
The facts so far
As reported. Each one links to where it comes from.
- Section 31 of the Income Tax Act caps annual loss writeoffs at $17,500 for horse owners whose principal source of income is outside farming.winnipegfreepress.com
- Kevin Attard has 75 horses at Toronto’s Woodbine Racetrack and another 30 at a farm he rents in Caledon, Ont.winnipegfreepress.com
- Woodbine Racetrack housed approximately 1,900 horses in 2023, down to roughly 1,600 now.winnipegfreepress.com
- It is estimated between 30,000 and 50,000 people in Ontario make a living or find seasonal/part-time work in racing.winnipegfreepress.com
Why it matters
The racing industry is a significant economic ecosystem in Ontario, supporting tens of thousands of jobs. The current tax structure is seen by industry leaders as a major limitation that discourages investment and drives talent and capital toward the U.S. market, threatening the stability of this sector.
This issue is part of a broader debate about whether Canada's tax laws adequately recognize horse racing as a cultural and commercial enterprise. While the federal government previously boosted the deduction to $17,500 in 2013, industry groups argue the law remains outdated and needs attention to ensure the industry can be self-sufficient.
What we don't know yet
- Will the federal government review or change Section 31 of the Income Tax Act?
- How quickly will the decline in horses at Woodbine Racetrack accelerate?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
Reporting
- winnipegfreepress.comOct 22
Keep going
Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.