TORONTO, Oct. 30 /CNW/ - Canada's Chartered Accountants are encouraged by
the federal government's plan to accelerate tax relief for individuals,
families and businesses, announced in today's economic statement.
"The government's commitment to reduce the general corporate tax to a
rate of 15% by 2012 is a positive step toward making Canadian companies more
competitive," said Kevin Dancey, FCA, President and CEO of the Canadian
Institute of Chartered Accountants (CICA). While Dancey welcomed the
government's decision to reduce overall taxes and to commit an additional
$10 billion for debt reduction this year, he said corporate taxes need to be
reduced further and faster than currently planned.
CICA has been calling on the government to reduce corporate taxes, which
it believes are hampering the competitiveness of Canadian businesses. The
Institute first raised the issue in its submission to the House of Commons
Standing Committee on Finance in September, 2006, when it urged the government
to drive the general corporate tax rate down to the small business level.
"The additional percentage point reduction in the general corporate rate
in 2008, together with the plan to reduce the small business tax rate to 11%
next year, will help stimulate business growth and job creation," Dancey
added. "We'd like to see the government go faster and even further, by
reducing the corporate tax rate so that it matches the small business rate, a
move that would simplify the tax structure and enhance the prosperity of all
"Businesses deal with taxes like any other cost," said Dancey. "They
result in higher prices, reduced wages for employees or lower returns for
owners and shareholders. The sooner we can put the general corporate tax rate
on par with the small-business rate the better for all Canadians."
The Canadian Institute of Chartered Accountants (CICA), together with the
provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants,
represents a membership of approximately 72,000 CAs and 10,000 students in
Canada and Bermuda. The CICA conducts research into current business issues
and supports the setting of accounting, auditing and assurance standards for
business, not-for-profit organizations and government. It issues guidance on
control and governance, publishes professional literature, develops continuing
education programs and represents the CA profession nationally and
internationally. CICA is a founding member of the International Federation of
Accountants (IFAC) and the Global Accounting Alliance (GAA).
For further information:
For further information: Tobin Lambie, Media Manager, CICA, (416)