At a time when affordability and the cost of living are top of mind for many families in Canada, it’s important to look at which household expenses are costing Canadian families the most. According to a recent study, taxes are the largest single expenditure for the average family, even bigger than expenditures on basic necessities. According to almost every indicator including economic growth, business investment, entrepreneurship, and the employment and unemployment rates, Canada’s private sector is struggling, negatively impacting the economic wellbeing all families.

In these more complicated times of red tape and bureaucracy, business in Canada is finding it more and more difficult to focus on what’s important, mainly providing goods and service to the Canadian consumer at a reasonable price.
One of the main stress points in any business today can be a letter, email, or phone call from CRA regarding an issue with one of their tax returns. Many can relate to how CRA will want to review and discuss a return from many years ago.
This policy resolution is intended to address areas where process costs and expenses may be managed more cost-effectively and efficiently.

To encourage small businesses to invest in residential real estate and to increase the available housing supply in Canada, income earned by a Canadian-Controlled Private Corporation (CPCC) for rental income should be taxed at the active business rate instead of the high investment tax rate.

The Carter Commission recognized long ago that the appropriate unit of taxation is the “family unit” rather than the individual. Recent changes to the taxation of spouses within a family unit has highlighted the inequality of the tax burden realized by the family unit. In particular, shareholders of Canadian businesses are most affected by the changes, and it is now necessary to reverse them through the introduction of amendments to the Income Tax Act that will provide for the filing of Joint Spousal income tax returns.

The current approach to taxation of corporate groups in Canada ignores the commonality of ownership principles and requires that owners undertake costly and complicated planning to allow for consolidation or transfers of losses and/or credits between members of a common corporate group. Several countries in the Organization for Economic Co-operation and Development (OECD) allow for taxation of corporate groups on a consolidated basis and it is past time for Canada to join its peers in this practice.

It has been nearly 60 years since the last thorough review was undertaken of Canada’s tax code, which now encompasses several thousand pages. Since that review, it has become complex, bloated, and inefficient while continually being inflated by a patchwork of incentives and amendments that have made it burdensome, especially for businesses. It is time reinforce the Canadian Chamber of Commerce’s ongoing agenda of having our tax system reviewed by beginning with a federally appointed Royal Commission to examine the tax code in effort to simplify and create a more equitable and balanced document that encourages, not discourages, economic growth.

The increase to capital gains set to be enforced as of June 25th, 2024, will have profound, long lasting and potentially irreversible repercussions detrimental to Canadian businesses.

While most healthcare professionals are exempt from charging clients Harmonized Sales Tax, there are still some left out of this exemption, including Registered Massage Therapists. All healthcare service providers should enjoy the same sales tax exemptions.

Public debt as a ratio to GDP soared in Canada and across the world during COVID-19 and is expected to remain elevated, posing a growing challenge for policymakers.

The latest federal budget forecasts persistent deficit spending and increasing public debt without a clear plan for fiscal balance. With projections showing a continued rise in debt and interest payments consuming a significant portion of the budget, concerns arise about the sustainability of this approach. Moreover, the reliance on taxation to address the debt issue poses potential consequences for economic growth and competitiveness, particularly through discouraging business investment.

The current regulatory landscape in British Columbia poses a significant challenge for companies due to the disparate disclosure requirements related to Transparency Registers, Speculation and Vacancy Tax, and Canada’s enhanced mandatory disclosure rules. The lack of harmonization in reporting criteria, filing timelines, and data elements creates an administrative burden for businesses, leading to potential errors, non-compliance risks, and increased resource demands. Addressing this issue is crucial to streamline the disclosure process, reduce complexities, and foster better compliance with both provincial and federal regulations.