Tax Reform Key To Canadian Growth, CICA Says

By Editorial 28 September, 2012

Greater focus on Canada’s tax regime is crucial if the federal government is to boost economic growth and achieve a sustained recovery, the Canadian Institute of Chartered Accountants (CICA) has said.

The claim is made in a pre-budget submission to parliament's Standing Committee on Finance. In its submission, CICA applauds the federal government for its use of spending cuts, rather than tax hikes, to balance the budget over time.

However, while CICA urges the government to continue in this approach, the submission also calls for the personal income tax burden to be eased. According to Gabe Hayos, CICA's vice president of taxation, this will help taxpayers prosper in a time of economic uncertainty, and will enable Canada to attract and retain talent in the global marketplace.

The submission also argues that the government should reduce the complexity of Canada's domestic tax regime. Hayos explained that simplifying the tax system would make the country more competitive, and recommended that the government establish a national consultation process to examine simplification measures.

CICA believes that introducing personal income tax credits only adds to the system's complexity. Broad-based tax reductions would represent a more meaningful approach and should therefore be considered, the submission concludes.

Tags: Expatriates | Tax | Fiscal Policy | Budget | Tax Credits | Tax Rates | Canada | Tax Reform | Individual Income Tax |


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