KPMG spokespeople available for budget commentary and analysis
TORONTO, March 18, 2019 /CNW/ - Canadian business leaders support personal income tax cuts in the federal budget but also want to see corporate tax reductions to improve our global competitiveness, says KPMG in Canada.
"We have been hearing concerns from our clients and business leaders about Canada's slowing growth relative to GDP and how current tax rates are hurting our global competitiveness," says Greg Wiebe, Canadian Managing Partner, Tax at KPMG. "The negative effects of major U.S. tax reform are top of mind for many in the business community, who would like to see Canada's competitive tax advantage restored. On average, Canada's combined federal and provincial corporate tax rate is now roughly on par with the average U.S. corporate tax rate."
"Although this is an election year, we hope this budget contains substantial measures to address the competitive challenges facing Canadian companies and our ability to attract foreign investment," adds Wiebe. "We will be watching to see how the government manages to deliver an economic plan that balances the interests of both business and individual Canadians."
According to a recent KPMG online survey of clients and stakeholders, 70 per cent believe the economy is weakening (30 per cent concerned and 40 per cent less optimistic) in the near-term. Eighty-seven per cent say U.S. tax reform has had a negative impact on Canada's tax competitiveness, while nearly all respondents (98 per cent) have some level of concern about the impact of current trade disputes on the economy, particularly for Canadian exporters. The top measures identified to foster business growth in this federal budget are reductions to personal income tax rates (37 per cent) and reductions to corporate tax rates (26 per cent). Furthermore, 29 per cent of respondents identified taxation and regulatory requirements as a key challenge for the economy, while household debt levels (40 per cent) were considered the most significant issue for Canadian consumers.
In 2018, the U.S. government reduced the corporate federal tax rate from 35 per cent to 21 per cent. The representative U.S. corporate tax rate (combined federal and state tax rate) is approximately 27 per cent. Currently, Canada's representative corporate tax rate is 26.5 per cent, based on federal and Ontario rates. Some provincial and state corporate tax rates are higher or lower than the representative rates. The highest personal tax rate in Canada now exceeds 50 per cent in most provinces, significantly higher than in the U.S.
KPMG's professionals are available to provide insight and commentary on the impact of the 2019 budget on businesses in Canada.
Carmela Pallotto, a partner in our tax practice, will be in the budget media lock up and available to provide analysis and insight. To book an interview with Carmela or any of our spokespeople, please contact Nancy White at 416.777.3306 or [email protected].
See KPMG's full list of national and regional spokespeople here.
Learn more from our professionals about what could be in store for business and Canadians by contacting us or by visiting our Federal Budget homepage.
KPMG will be hosting its Federal Budget 2019 webcast on March 19, 2019 at 5pm EDT, right after the budget is tabled. Budget highlights will also be available late in the afternoon on budget day at kpmg.ca.
About KPMG in Canada
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG member firms around the world have 207,000 professionals, in 153 countries and territories. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.
SOURCE KPMG LLP
For further information: Nancy White, National Communications, KPMG in Canada, 416.777.3306 (T), 416.876.1400 (C), [email protected]