TORONTO, Nov. 5, 2013 /CNW/ - A simpler tax system, making it easier for companies to file government required information and an incentive for greater innovation are recommendations by the Chartered Professional Accountants of Canada (CPA Canada) to help the country achieve economic sustainability.
CPA Canada's appearance today in Ottawa before the House of Commons Standing Committee on Finance came as the country's accounting landscape is undergoing change. All of the country's accounting bodies have either merged under the Chartered Professional Accountant (CPA) banner or are in unification discussions. CPA Canada and the Certified General Accountants Association of Canada (CGA-Canada) had earlier provided a co-branded pre-budget submission to the finance committee.
The three key recommendations from the earlier written submission were highlighted: Tax Simplification, Standard Business Reporting and a Patent Box.
"If acted upon, the recommendations would encourage economic growth, promote job creation and help improve Canada's productivity record," said Gabe Hayos, FCPA, FCA, vice-president, taxation, CPA Canada.
The federal government is being urged to undertake a comprehensive review of Canada's tax system to reduce complexities and inefficiencies.
"Tax simplification would increase productivity, improve Canada's competitiveness, and eliminate barriers to jobs, growth and long-term prosperity," explained Hayos. "Spending less time on tax compliance allows companies to focus more on their operations which can help create jobs and grow the Canadian economy."
Still on the topic of devoting more time to productive endeavours, the federal government is being encouraged to consider adoption of Standardized Business Reporting, more specifically, eXtensible Business Reporting Language or XBRL. It is a data tagging mechanism that could be used with government filings to reduce both business compliance costs and heighten the efficiency and accuracy of information collected.
The finance committee has included tax simplification and the use of XBRL among its recommendations forwarded to the federal government in the past.
Another suggestion raised by CPA Canada calls for the federal government to implement a "patent box" to incent Canadian companies to develop and commercialize their innovations in Canada.
"Canadian businesses would benefit by paying a lower rate of tax on profits earned from commercializing innovations," said Hayos.
The CPA Canada presentation also reiterated the organization's commitment to financial literacy and to foreign credential assessment initiatives to help internationally trained accounting professionals.
The pre-budget submission is available online at www.cpacanada.ca/2013Pre-Budget.
Note: The CPA Canada presentation to the House of Commons Standing Committee on Finance was made by Richard Monk, FCMA, an advisor to CPA Canada and past chair of CMA Canada.
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