TORONTO, Feb. 3 /CNW/ - PwC has submitted its tax proposals to Finance Minister Jim Flaherty as
part of his pre-budget consultations, including a recommendation that
the federal government continue with the planned reduction of corporate
income tax rates. These tax cuts will make Canada's tax rate on
business investment the lowest among G7 countries by 2012.
According to PwC's recent report Paying Taxes 2011, business tax rates in Canada were reduced to a low of 29.2% last
(compared to 49.1% in 2006), helping our global total tax rate ranking
rise from 103 in 2009 to 37 in 2010 (out of 183 countries). Canada is
in tenth place when it comes to its overall ease of paying taxes,
making it the only G20 economy in the Top 10 based on its number of tax
payments, the time it takes to comply and its total tax rate.
More Key Proposals from PwC's Tax Group
Provide better access to foreign markets for Canadian business. The government should increase its efforts to enter into trade
agreements and tax treaties with emerging markets in Asia, South
America and Africa to help Canadian business have greater access to
these rapidly growing markets. "PwC is urging the Finance Minister to
commence negotiations to sign a tax treaty with Hong Kong, the gateway
to Asia and a hub for many Canadian businesses with interests in that
part of the world," says Nick Pantaleo, PwC's Canadian National Tax
Services Leader. "Canadian companies should have the ability to keep
pace with foreign competitors of countries that already have agreements
with Hong Kong."
Guard against currency value manipulations. PwC also recommends that the federal government take a more active
stance and participate with other nation's governments in a joint
effort to pressure countries that are artificially reducing the value
of their currency in order to maintain their growth. "The manipulation
of currency value is short-lived and disruptive to the international
market place, making Canada's exports more expensive" says Pantaleo.
Reduce the red tape and costs associated with income tax reporting. There has been a significant increase in the administration costs
associated with the rising amount of financial and other information
that Canadian taxpayers must report for income tax purposes. However
for most taxpayers, this has not resulted in quality audit results and
quicker reporting times. "We recommend that there be a review of the
existing information reporting requirements and if they can't be traced
to improved tax administration processes they should be eliminated and
avoided in the future if real benefits cannot be established," says
2011 Federal Budget
PwC has a team of tax specialists available for comment regarding the
upcoming federal budget. Please contact Kiran Chauhan, (416) 947-8983, firstname.lastname@example.org or David Rowney, (416) 365-8858, email@example.com for more information.
PwC's full letter of federal budget recommendations (http://www.pwc.com/ca/budget) and Paying Taxes 2011 report (http://www.pwc.com/ca/payingtaxes) are also available from the media contacts.
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experience and solutions to develop fresh perspectives and practical
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offices across the country.
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PwC Name Change
PwC has changed its name from PricewaterhouseCoopers to PwC in the fall
of 2010. 'PwC' is written in text with a capital 'P' and capital 'C'.
Only when you use the PwC logo is the name represented in lower case.
"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability
partnership, which is a member firm of PricewaterhouseCoopers
International Limited, each member firm of which is a separate legal
For further information:
Kiran Chauhan, PwC
Tel: 416 947 8983
David Rowney, PwC
Tel: 416 365 8858