Much needed business tax cuts a critical piece of Throne Speech, say Canada's Chartered Accountants

    TORONTO, Oct. 16 /CNW/ - Canada's Chartered Accountants applaud the
general direction outlined for the country in today's Throne Speech,
especially the commitment to broad-based tax relief, including business taxes.
    "Countries around the world are reducing corporate taxes," said Kevin
Dancey, FCA, President and CEO of the Canadian Institute of Chartered
Accountants (CICA). "Significant Canadian corporate tax reductions are needed
to enhance the productivity, competitiveness and overall growth of our
business sector, which creates wealth and provides millions of jobs for
    "We cannot lose sight of the fact that it is Canadian businesses that
create wealth and jobs," said Dancey. "Canada's CAs continue to urge the
federal government to bring corporate tax rates down to the small business
level as quickly as possible. We look forward to seeing the details of the
government's plans in the fall economic update."
    The CICA notes that businesses deal with taxes like any other cost: they
either result in higher prices, reduced wages for employees or lower returns
for owners and shareholders. Studies suggest that in small open economies like
Canada, it is labour that bears the biggest burden of high taxes. Those higher
taxes lead to lower wages. Moving to a single corporate tax rate has
additional benefits since it would reduce the complexity of the tax system and
lower compliance costs.
    The CICA supports the government's commitment to strengthening the
federation by enhancing the efficiency of internal trade and labour mobility
as a means to increase competitiveness and long-term productivity.
    "The CA profession has created a uniform system of professional
qualification and conduct standards that enable all CAs to work in all
Canadian provinces and abroad, as well as facilitating mobility for
internationally trained professionals who seek to practice in Canada," said
Dancey. "Having internationally recognized, high, nationally consistent
standards of qualification and conduct for public accounting professionals is
the best way to enhance mobility and protect the Canadian public, business and
our economy, as well as to maintain our international trading partner
    The CICA also is encouraged that the federal government intends to
deliver additional broad-based personal income tax reductions. In addition,
the Institute has called on the federal government to ensure capital cost
allowance rates keep up with economic depreciation, aggressively pursue sales
tax harmonization with the provinces and accelerate the implementation
deadline for eliminating provincial capital taxes.
    The CICA also believes the government should maintain its commitment to
further debt reduction.
    "The recent announcement that the national debt has been reduced by
$14.2 billion means that the government continues to make real progress in
improving its fiscal health," said Dancey. "However, debt charges are a
significant drain on the government's finances, which remain vulnerable to
rising interest rates. The CICA believes the federal government must
accelerate the pace of debt reduction, calling for minimum debt payments of
$5 billion per year and a debt-to-GDP ratio of 20 per cent by 2013/2014."

    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: or to arrange an interview, contact: Tobin
Lambie, Media Manager, CICA, (416) 204-3228,

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Canadian Institute of Chartered Accountants

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