The AQT focuses its recommendations on increased foreign trade marketing to grow Quebec's collective wealth
MONTRÉAL, Oct. 29, 2014 /CNW Telbec/ - Tomorrow the Quebec Technology Association (AQT), which operates at the provincial level and represents more than 500 companies in the information and communications technology (ICT) sector, will submit its recommendations to the Commission d'examen sur la fiscalité [Quebec's taxation review board]. AQT will address the issue of tax cuts by proposing solutions that will propel the industry forward and raise the profile of ICT firms beyond the province's borders.
The results of AQT's survey carried out in September, just three months after Minister Leitão tabled his budget, give a clear picture of the state of the ICT industry. The association also enlisted the services of an economist to analyze the benefits of tax credits for companies. The impact assessment found a strong statistical relationship between R&D credits and exports, that is, each dollar invested in research and development is associated with $0.88 in new export revenue in the same year, and thereby contributes to the wealth of Quebec as a whole.
This finding takes on even more significance given the fact that 76% of SMEs among the ICT firms surveyed already do business outside the province of Quebec, compared to just 21% of all Quebec SMEs. Out-of-province sales account for 37% of their total sales, representing a major source of income for Quebec's public purse. This income stream benefits the population directly by growing our collective wealth in the immediate term and creating further spinoffs, such as tax benefits associated with quality jobs.
"It has become very clear that the key lies in exports. We must therefore eliminate, insofar as possible, the obstacles to commercialization outside Quebec," AQT President and CEO Nicole Martel said. Accordingly, the association is making several recommendations regarding possible savings that wouldn't affect existing tax credits.
Recommendations related to the industry's economic performance
The AQT is making a number of recommendations aimed at positioning the ICT industry to become a major contributor to Quebec's collective wealth, as part of a brief submitted to the Commission de révision permanente des programmes [permanent program review board] and the Commission d'examen sur la fiscalité [taxation review board]. Two recommendations are being made to the latter:
- Creation of a competitive fiscal environment aimed at stimulating the growth of existing businesses. In so doing, the tax measures would be modularized based on certain criteria, including company size, expenses associated with marketing outside Quebec, and the results achieved in this regard.
- Commercialization and exportation, by proposing practical tools for out-of-province marketing and suggesting the creation of a fund for this purpose, as well as changes to existing marketing assistance programs.
To view the brief (in French only): http://www.aqt.ca/sites/default/files/memoire_aqt_automne_2014.pdf
About the Quebec Technology Association (AQT)
The Quebec Technology Association (AQT) promotes the visibility of innovative SMEs in the ICT industry at a provincial scale, while acting as a sector representative. The AQT supports CEOs and their executive teams in their business growth and development, by providing them a real toolbox. Now the largest ICT business network in Quebec, the AQT is a non-profit and self-funded organization representing more than 500 corporate members and members by affiliation. The association provides local and international networking opportunities, improvement tools and benchmarking. The building blocks of success! For more information, visit http://www.aqt.ca/en.
SOURCE: Quebec Technology Association (AQT)