Federal government red tape reduction applauded: CPA Canada

CPA Canada responds to the release of the government’s second Annual Scorecard Report which outlines the reforms taken to confront red tape.

TORONTO, January 21, 2015 – Chartered Professional Accountants of Canada (CPA Canada) is encouraged by the federal government’s latest update showing continued progress in the effort to reduce the red tape burden faced by Canadian business owners.

The government’s second Annual Scorecard Report, released today, outlines the reforms taken to confront red tape and allow business owners to spend more time focusing on strengthening and growing their operations.

For example, in the 2013-14 fiscal year, there was an estimated savings of $75 million in compliance and administrative costs for small business as a result of the Small Business Lens. Other measurable results show fewer regulations overall and businesses spending less time dealing with frustrating and costly red tape.

“In today’s unsettled economy, Canadian businesses face enough challenges without unnecessary compliance burdens and the associated costs,” says Gabe Hayos, vice-president, taxation, CPA Canada. “While the government is making progress in cutting red tape, a diligent approach must be sustained. The government is off to a good start with its Red Tape Reduction Action Plan and the Annual Scorecard, but it can go further.”

CPA Canada continues to push for standardized business reporting, namely XBRL, because it would help reduce compliance costs for business and improve the government’s data collection. The national accounting body also says further action can be taken to ease the compliance burden in the area of taxation.

The Canada Revenue Agency and CPA Canada have a framework agreement in place. Both organizations are working collectively on issues of mutual interest, including red tape reduction.

CPA Canada’s views were sought in a stakeholder consultation session held by the external Regulatory Advisory Committee tasked with reviewing the Scorecard to ensure it is a reliable account of the progress being made.

“There is momentum in the effort to reduce red tape,” says Hayos. “For continued success, maintaining transparency and accountability is essential.”

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.

For more information, contact:

Diana Sorace
Media Relations
CPA Canada
(604) 694-6700