The Ontario government today introduced legislation that, if approved, would streamline Ontario’s corporate tax administration and increase businesses’ competitive advantage, said Finance Minister Greg Sorbara.

“This bill outlines one of the most significant steps the federal and provincial governments can make to help the Ontario corporate income tax system work more efficiently and effectively,” said Sorbara. “This legislation will give businesses one set of tax forms, one audit and one set of rules.”

The Strengthening Business through a Simpler Tax System Act, 2006 builds on the Memorandum of Agreement signed in October 2006 for the federal government, on Ontario’s behalf, to administer corporate taxes in the province beginning in 2009. The bill proposes to combine the current Income Tax Act and the Corporations Tax Act into a single, more streamlined statute.

Provisions in Bill 174 are projected save Ontario businesses up to $100 million annually in administrative costs, by spending less time and money on filing paperwork and more time on their business. There is also a further savings of $90 million a year in lower Ontario corporate income taxes, which is the result of Ontario’s harmonization with the federal corporate income tax base.

“The agreement to move toward a single corporate tax collection strengthens Ontario’s economy by making it easier for businesses to do business,” said Sorbara. “It helps to build a more competitive economy by reducing costs and simplifying the rules for business, and also to build a more productive working relationship with the federal government.”