(OTTAWA) – Wednesday, April 10 – From individual Canadians or small businesses, to Bay Street’s biggest firms, no one thinks Canada’s tax system is in working order. Canada’s tax system is outdated, complex, inefficient and it imposes significant compliance costs on taxpayers.
The Canadian tax system is such a royal pain that only a Royal Commission can address the issues our outdated system has created. To help make the case for the first review of Canada’s tax system in almost 50 years, the Canadian Chamber is launching A Taxing Issue, a website dedicated to arguing the case for a review.
“By any measure, Canada’s tax system is failing Canadians and the businesses that employ them, deterring investment and the attraction of top talent. Our message to politicians is clear: we need a Royal Commission on tax, with everything on the table, so that every Canadian and business can catch up to the rest of the world,” said Dr. Trevin Stratton, Chief Economist, Canadian Camber of Commerce.
Successive governments have avoided tackling this critical issue because they believe that comprehensive reform is too complicated, would take too long or is too expensive. However, countries like the U.K. and New Zealand have overhauled their tax systems using a variety of models that we can learn from. Not only is tax reform possible, but Canada is late to the game.
“Canadian businesses will be looking for parties to develop solid plans to carry out a royal commission on tax reform as part of their election platforms. The hard working Canadians that start and grow businesses want to see the same effort from their elected officials to address this taxing issue,” added Stratton.
The website and call for a royal commission builds upon the work of the recent report, 50 Years of Cutting and Pasting: Modernizing Canada’s Tax System. The report was based on consultations, interviews and roundtables with business leaders and senior tax practitioners, in addition to the tax policy resolutions from Canada’s chamber of commerce network representing over 200,000 businesses.
The Canadian Chamber’s members believe that a Royal Commission should be a whole-of-system review, guided by the principles of tax competitiveness, simplicity, fairness, and neutrality.
Any review should explore the most effective tax policy solutions, such as adjusting the tax mix to better promote investment and growth, bridging the digital tax divide to ensure a fair and equitable tax system, and providing a representative for small business to resolve conflicts with the Canada Revenue Agency.
For more information about tax reform, visit A Taxing Issue or download the Canadian Chamber Report 50 Years of Cutting and Pasting: Modernizing Canada’s Tax System.
The Canadian Chamber of Commerce is the vital connection between business and the federal government. It helps shape public policy and decision-making to the benefit of businesses, communities and families across Canada with a network of over 450 chambers of commerce and boards of trade, representing 200,000 businesses of all sizes in all sectors of the economy and in all regions. News and information are available at Chamber.ca or follow us on Twitter @CdnChamberofCom.
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