TORONTO, Sept. 20, 2012 /CNW/ - Strong fiscal management by the federal
government and a greater focus on Canada's tax regime are crucial to
enhancing economic growth and achieving a sustained economic recovery,
according to the Canadian Institute of Chartered Accountants (CICA).
The CICA recently made its 2012 pre-budget submission to the House of
Commons Standing Committee on Finance.
"We applaud the federal government for its plan to balance the budget
over time through expenditure controls rather than increasing the
overall tax burden on Canadians," says Kevin Dancey, FCA, president and
CEO, CICA. "This approach must continue."
In fact, the CICA states that the personal income tax burden should be
eased. "This will help Canadians prosper during these times of
economic uncertainty and help attract and retain talent in the global
marketplace," stresses Gabe Hayos, the organization's vice-president of
In addition, the submission notes that reducing the complexity of
Canada's domestic tax regime is integral to easing the regulatory
burden placed on Canadian businesses and attracting investment.
"Simplifying our tax system would make the country more competitive and
allow both individuals and businesses to prosper," explains Hayos.
"Many aspects of Canada's tax system have become too complex for
businesses and individuals and we recommend that the government
establish a national consultation process to examine tax simplification
For example, rather than introducing personal income tax credits that
only add complexity, the CICA believes broad-based tax reductions
represent a more meaningful approach and should be examined.
When it comes to reducing tax complexity, Hayos notes two aspects must
be explored: possible immediate actions and a more long-term approach
to easing the regulatory burden.
Other topics addressed by the CICA include federal innovation funding,
reducing red tape, expanding international trade agreements and helping
internationally trained professionals succeed in their chosen fields.
The submission also notes that ensuring the adequacy of retirement
savings is fundamental to addressing the challenges associated with an
aging population. It calls on the government to provide further
incentives to help Canadians save for their retirement. "Financial
literacy also is a factor," says Dancey. "Financial capabilities vary
among Canadians so we must ensure that people have the skills and
knowledge required to provide for their retirement."
The CICA pre-budget submission is available online (http://www.cica.ca/prebudget2012).
Chartered Accountants (CAs) are Canada's most valued, internationally recognized profession of
leaders in senior management, advisory, financial, tax and assurance
roles. Through their integrity, expertise, and internationally
recognized qualification standards, Canada's 82,000 CAs sustain their
influence and leadership position both in Canada and globally. As
trusted business advisors to Canadian organizations of all sizes,
Canada's CAs foster confidence in Canadian business and contribute to
the health and sustainability of Canada's capital markets and economy.
The Canadian Institute of Chartered Accountants (CICA) represents
Canada's CA profession both nationally and internationally. The CICA is
a founding member of the International Federation of Accountants (IFAC)
and the Global Accounting Alliance (GAA).
SOURCE: Canadian Institute of Chartered Accountants
For further information:
or to arrange an interview, contact:
Tobin Lambie, Manager, Media, CICA