TORONTO, Dec. 14, 2012 /CNW/ - The Canadian Institute of Chartered Accountants (CICA) is calling on the federal government to listen to recommendations pertaining to tax complexity emerging from pre-budget consultation efforts.
The House of Commons Standing Committee on Finance is recommending the government explore ways to simplify the Income Tax Act, including the establishment of a royal commission to undertake a comprehensive review.
"We applaud the committee for the recommendation," says Gabe Hayos, the CICA's vice-president of taxation. "We have been calling for the creation of a national consultation process to examine tax simplification measures. There must be a real commitment from the federal government if change is going to occur and this would be best addressed by a comprehensive review of the tax system."
The CICA also welcomes additional recommendations calling for tax rates that will help keep Canada competitive and the closing of loopholes in an effort to ensure fairness within the system.
The committee recommendations focus on a variety of areas including the need for the government to continually review spending of taxpayers' money to eliminate waste and inefficiencies. "Prudent fiscal management by the federal government combined with an emphasis on greater tax simplicity are crucial aspects to enhancing economic growth," says Hayos.
Another recommendation that was included in the CICA's pre-budget submission is having the government explore the possibility of standardizing business reporting using eXtensible Business Reporting Language or XBRL. It is a data tagging mechanism that could be used with government filings to reduce both compliance costs and heighten the efficiency and accuracy of information collected.
The committee recommendations also touch on a number of other issues raised by the CICA. These include: financial literacy, expanding international trade agreements and helping internationally trained professionals succeed in their chosen fields.
The CICA's pre-budget submission is available online (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
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