TORONTO, Dec. 12, 2014 /CNW/ - A number of recommendations made by Chartered Professional Accountants of Canada (CPA Canada) are captured in the pre-budget report tabled by the House of Commons Standing Committee on Finance.
In particular, CPA Canada is pleased that its recommendations relating to prudent fiscal management, improving Canada's tax system and advancing innovation were echoed by the finance committee.
Among its several recommendations, the committee calls on the federal government to:
- Continue to scrutinize and review the spending of taxpayers' dollars in order to eliminate waste and inefficiencies
- Explore new ways to simplify the Income Tax Act
- Continue to ensure the existence of a competitive tax system in order to promote job creation and attract new investment
- Encourage and support Canadian businesses to develop made-in-Canada solutions when it comes to research, development, innovation and commercialization – including exploring the feasibility of a "patent box"
CPA Canada's proposed "patent box" is aimed at encouraging businesses to commercialize and retain patents in this country. Innovative companies would be rewarded through a lower tax rate on profits earned from the commercialization of patents in Canada.
"We applaud the committee for listening and reinforcing its support for key measures required to help grow the Canadian economy," says Kevin Dancey, president and CEO, CPA Canada.
In fact, CPA Canada is not alone in its call for tax simplification and reform.
The committee report notes: "The Canadian Council of Chief Executives, the Conference Board of Canada and the Canadian Taxpayers Federation called for a comprehensive review of the tax system with a view to simplifying it and supporting economic growth."
"This demonstrates the growing consensus for tax reform," stresses Gabe Hayos, vice-president, taxation, CPA Canada. "It's time for a thorough review of Canada's tax system. A lot has changed since this was last done with Royal Commission on Taxation in the 60s."
CPA Canada also welcomes the committee's support of financial literacy and its call for the government to pursue an aggressive trade agenda.
While the committee report referenced CPA Canada's request that business data be standardized for electronic filing, it was not directly mentioned among the recommendations. "We will continue to push for standardized business reporting, namely XBRL, because this would help reduce compliance costs for business and improve the government's data collection," says Dancey.
CPA Canada's pre-budget submission to the finance committee is available online at www.cpacanada.ca/prebudget2014.
About CPA Canada
Canada's accounting profession is uniting under a new single designation, Chartered Professional Accountant (CPA). The profession's national body, Chartered Professional Accountants of Canada (CPA Canada), represents and supports more than 190,000 members across the country. CPAs are valued for their financial and tax expertise, strategic thinking, business insight, management skills and leadership. CPA Canada has consolidated the operations of three national accounting bodies: The Canadian Institute of Chartered Accountants, the Certified General Accountants of Canada and The Society of Management Accountants of Canada. CPA Canada conducts research into current and emerging business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It also issues guidance on control and governance, publishes professional literature and develops certification and continuing education programs.
SOURCE: CPA Canada
For further information: Justine Toqué, Communications Advisor, CPA Canada, (604) 694-6700, [email protected], www.cpacanada.ca