The federal government must implement tax mechanisms that improve Canada’s economic value creators and the domestic business climate, according to today’s testimony by the Financial Executives International Canada (FEI Canada), before the House of Commons Standing Committee on Finance.
“It is imperative that Canada’s tax system supports and enhances the competitiveness of the Canadian economy and ensures its long term prosperity,” stated Michael Conway, chief executive and national president, FEI Canada, the professional membership association for senior financial executives.
“Canadian corporations carry a heavy burden of taxes. We encourage the government not only to accelerate the reduction of corporate effective tax rates, but to provide Canadian business’ incentives to enhance the skills of Canadian employees. The government must also maintain its debt reduction schedule and show spending restraint by focusing its investments on infrastructure, in sectors such as transportation, post secondary education, and research and development, which together will drive growth and improve productivity,” Conway said.
FEI submission to the finance committee focused on three key areas: competitiveness; efficiency; and accountability of federal spending.
As highlighted in its submission to the committed, FEI urged the government to implement tax incentives which encourage Canadian business to enhance the skills and qualification of Canadian employees. It called for the introduction of a refundable tax credit for qualified education and training and for the creation of a Centre for Continuing Workplace Education and Training.
Focusing on the efficiency of the tax system, FEI has been a long time advocate for simplification of the Canadian tax system. It recommended harmonization and no further reduction of federal and provincial sales taxes, a reduction of the number of capital cost allowance classes and the implementation of group tax consolidation.
“The costs of complying with Canada’s tax system are excessive. The current patchwork of overlapping tax measures, regulations and administrative practices place time constraints on Canada’s business executives and limit their ability to focus on business generation programs and initiatives,” stated Barry Gorman, tax committee chairman, FEI Canada. “Individuals and business need more stability and consistency in the tax policy making and administrative processes, which will allow talented individuals to focus on business development.”
FEI Canada also encouraged the Department of Finance to initiate a formal, comprehensive and regular review of the tax system.
Tax system must support Canadian competitiveness: FEI Canada
- By: IE Staff
- April 14, 2008 April 14, 2008
- 11:25