TORONTO, Feb. 11, 2014 /CNW/ - The latest federal budget earned a silver medal from the Chartered Professional Accountants of Canada (CPA Canada) with the organization adopting a rating system appropriate for an Olympic year.
The government continues to employ fiscal restraint and remains on target to achieve a balanced budget by 2015-16.
"The desired balanced budget serves as a beacon guiding the government in its financial planning," says Gabe Hayos, vice-president, taxation, with CPA Canada. "The finish line is in sight and the government must stay committed to achieving its goal. Strengthening its own finances better positions the government to help grow the Canadian economy."
Because of lingering economic uncertainty, the government's focus has been a multi-year incremental approach to balancing its books.
"Spending shouldn't pick up until it is clear that the budget is balanced and additional money is available," says Hayos. "Canada's economy remains unsettled and may still experience a few bumps and bruises along the way."
CPA Canada is referenced in the budget for its recommendation calling on the government to simplify the Income Tax Act by replacing the eligible capital property rules with a new class of depreciable property. The government is listening and promising consultation on a measure that would accomplish what is being recommended. In particular, the government wants to hear from small businesses.
Additional items of particular note in the budget:
- No new taxes on Canadian families or businesses.
- Promised legislation requiring the Minister of Finance to table in Parliament annually a list of the government's outstanding tax measures.
- The government is signalling its intention to review whether the income tax exemption for non-profit organizations remains properly targeted and whether sufficient transparency and accountability provisions are in place.
- The introduction of measures to encourage charitable giving.
- The government's continued commitment to combat international tax evasion, as well as protecting the tax base from abusive domestic transactions. The government is encouraging stakeholder consultation to address these matters.
Gaining a higher podium finish:
Going forward, CPA Canada will be looking for more than just a balanced budget. For our economy and Canadians to truly prosper, fiscal management should come alongside measures aimed at improving productivity, stimulating innovation and creating jobs.
"We will continue to make recommendations focusing on matters such as taxation, business filing and having Canadian companies to develop and commercialize their innovations in Canada," says Hayos.
CPA Canada and the Certified General Accountants Association of Canada made a co-branded pre-budget submission to the House of Commons Standing Committee on Finance in 2013 (www.cpacanada.ca/2013Pre-Budget).
About CPA Canada
CPA Canada is the national organization established to support unification of the Canadian accounting profession under the Chartered Professional Accountant (CPA) designation. It was created by the Canadian Institute of Chartered Accountants (CICA) and The Society of Management Accountants of Canada (CMA Canada) to provide services to all CPA, CA, CMA and CGA accounting bodies that have unified or are committed to unification. As part of the unification effort, CPA Canada and the Certified General Accountants Association of Canada (CGA-Canada) are working toward integrating their operations. Unification will enhance the influence, relevance and contribution of the Canadian accounting profession both at home and internationally.
SOURCE CPA Canada