Weighing in on Budget 2012 and gearing up for Budget 2013

CICA is working on behalf of members to simplify Canada’s tax system, for the benefit of Canadians and the Canadian economy.

When the 2012 federal budget was delivered on March 29, 2012, CICA gave it a B Plus rating, saying it positions Canada well for the future while providing prudent fiscal management.

CICA is encouraged to see the government’s plan to balance its books through expenditure controls rather than tax increases or provincial off-loading. While there were no tax increases in the budget, CICA hoped for stronger action to address the complexity of Canada’s tax system and its undue reliance on personal taxes.

CICA believes tax complexity is an issue that must be addressed if Canada is going to establish a competitive environment that sets the stage for sustainable recovery and economic growth. Canada’s tax system must become more competitive, simpler and efficient.

Our 2012 budget commentary team included Kevin Dancey, CICA President and CEO; Gabe Hayos; Vivian Leung; CICA Tax Policy Committee member Bruce Ball (BDO Dunwoody); Don Carson (Meyers Norris Penny LLP); Luc Lacombe (Pratt, Bélanger) and Jim McConnery (Welch LLP).

On the day of the budget, CICA set out its budget scorecard in a media release and presented a more detailed analysis in a 2012 Budget Brief. The next morning saw the release of CICA's comprehensive Federal Budget Commentary, produced in cooperation with the provincial CA institutes, which provided just-in-time guidance that CAs and CA firms could distribute their to clients.

Budget 2013: Time to get serious about tax simplification

CICA is working on behalf of Canada's CAs to alert the federal government to the importance of a simpler, more efficient tax system to Canadians and the Canadian economy.

In May 2012, the CICA Tax Policy Committee held a full day of meetings with Canada Revenue Agency (CRA) and Department of Finance officials to share views and potential solutions to tax policy and administrative issues. Among other things, Committee members discussed the importance of:

  • preserving and enhancing Canada’s tax incentives for Scientific Research and Experimental Development
  • addressing personal tax complexity (e.g., T3 reporting and compliance, application of penalties)
  • simplifying the taxation of foreign affiliates, for example, by easing the tax rules that apply on the repatriation of active business income and eliminating withholding tax on interest and dividends
  • pursuing greater federal-provincial tax harmonization across all tax systems while seeking to minimize differences between harmonized sales tax rules among the provinces
This document was originally prepared by a legacy CPA organization.