Canada's CAs encourage federal government to focus on tax system and prudent
fiscal management

TORONTO, Sept. 16 /CNW/ - A simpler and more competitive tax system combined with prudent fiscal management by the federal government is needed if the country is to better compete globally, according to Canada's Chartered Accountants.

The recommendations are outlined in a submission to the House of Commons Standing Committee on Finance for its pre-budget deliberations.

"Businesses are increasingly making decisions in a global economy, so it is crucial that the federal government remain visibly committed to reducing corporate tax rates," said Kevin Dancey, FCA, president and CEO, Canadian Institute of Chartered Accountants (CICA). "Staying the course on reducing the corporate income tax rate is essential to attracting investment, enhancing Canada's competitiveness and creating prosperity. Measures aimed at simplifying our tax system will lessen the burden of compliance and reduce complexity."

The submission also notes that in order to stay competitive and attract and retain human capital, Canada must stay attuned to the personal income tax burden placed on Canadians. Other recommendations include calling on the government to continually adjust capital cost allowance rates so that they correspond to the true economic life of an asset and to consider further incentives for retirement savings.

The CICA also recognizes that the 2010 federal budget reflects a transition year in which the government is moving away from stimulus spending to restraint.

"The government must demonstrate the ability to rein in costs and prudently manage its finances going forward," said Dancey. "This is essential to meeting the fiscal commitments outlined in the 2010 budget and those made on the international stage."

Dancey added: "Following the recommended dual track of focusing on taxes and prudent fiscal management will help set the stage for sustainable recovery and economic growth. The budget should be brought back into balance through expenditure controls, not through an increase in the overall tax burden on Canadians."

The submission is titled "Enhancing Canada's Competitiveness" and is available online (www.cica.ca/prebudget2010).

The Canadian Institute of Chartered Accountants (CICA), together with the provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants, represents a membership of approximately 77,000 CAs and 12,000 students in Canada and Bermuda. The CICA conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).

For further information: or to arrange an interview, contact Tobin Lambie, Manager, Media, CICA, [phone], [email protected], www.cica.ca