Related News: "Fiscal and Tax Policy"
The 2009 federal budget relies on borrowed money to pay for a wide variety of spending and tax measures to provide short-term economic stimulus, but its most important provisions will not affect the budget balance, says the Canadian Council of Chief Executives (CCCE).
“The $200 billion Extraordinary Financing Framework announced in the budget will enable easier and cheaper access to loans for families and enterprises alike,” said CCCE Chief Executive and President Thomas d’Aquino. “This will boost confidence, encourage consumption and stimulate business investment without adding a penny to the deficit.”
In a December 2008 statement, What Canada Needs Now to Respond to the Economic Crisis, the CCCE said keeping credit flowing to consumers and businesses should be the government’s top priority. The financing framework announced in the budget enables the government to buy $12 billion in securities backed by assets such as car loans as well as another $50 billion in mortgages, adds capital to Export Development Corporation and the Business Development Bank of Canada, extends guarantees for wholesale term borrowing to include life insurers as well as banks and increases the ability of the Bank of Canada to provide additional liquidity in extraordinary circumstances.
The CCCE, which … Read more »
Addressing the New Year Members’ Meeting of the Canadian Council of Chief Executives (CCCE) in Toronto, Council Chief Executive and President Thomas d’Aquino outlined top priorities that he said should be front of mind for government and business leaders alike as Canadians confront the difficult and uncertain year ahead.
“Countering the recession is our number one priority,” Mr. d’Aquino said. “Events beyond our country’s control have rocked global financial markets, damaging consumer and business confidence around the world. Canada cannot escape the consequences: our economy must deal with the daunting challenges as our families and communities face real pain. No matter what we do, the economic situation will get worse before it gets better. Accurate predictions about the timing of the recovery are impossible to make. Canada is part of an economic universe that for the time being is without a compass.”
Given the sober economic realities, Mr. d’Aquino said Canada more than ever needs an effective counter-crisis strategy. “On the positive side, Canada is entering this period of economic turmoil from a position of relative strength. Our governments have been running budget surpluses and paying down debt. Our national pension system is well-financed and solvent. We continue to … Read more »
Today’s recommendations by the Advisory Panel on Canada’s System of International Taxation would simplify Canadian tax rules and make the country a more attractive base for global enterprises, says the Canadian Council of Chief Executives (CCCE).
“The Panel has offered a thoughtful package of pragmatic and balanced recommendations that would help Canadian enterprises to grow globally without any net cost to taxpayers,” said CCCE Chief Executive and President Thomas d’Aquino. “Improving our international tax system is essential to move Canada successfully through the current economic crisis, and should be addressed in the next federal budget.”
Mr. d’Aquino welcomed in particular the recommendations to broaden the current exemption approach to cover all foreign active business income and to repeal the provision introduced in 2007 that eliminated the deductibility of interest on money borrowed in Canada for investment in foreign affiliates.
“The global crisis in financial markets has made it harder for companies everywhere to raise money,” Mr. d’Aquino said. “As the Panel points out, this is the wrong time for rules that restrict the ability of Canadian companies to raise capital, especially when the tax rules in competing countries support the deductibility of interest for investments abroad.”
The CCCE is an … Read more »
Canada is relatively well positioned to deal with the global economic crisis, but today’s federal Economic and Fiscal Statement shows that the government must use its available resources wisely, says the Canadian Council of Chief Executives (CCCE).
“We are encouraged that the federal government is doing its best to avoid going into deficit. However, it will be able, if necessary, to open the spending taps to blunt the impact of the current global crisis precisely because it ran surpluses and paid down debt for so many years,” said CCCE Chief Executive and President Thomas d’Aquino.
“The government must not waste its hard-won fiscal capacity. It must rebuild confidence by looking after Canadians who need help in the short term, but it should focus on measures that will put Canada quickly back on track toward robust and sustainable economic growth,” he added.
“The unexpected severity of a crisis beyond Canada’s control means that families, enterprises and communities are facing real pain. We applaud in particular the immediate measures being taken with respect to pensions, credit and the financial sector, as well as the government’s recommitment to the rigorous review of all federal spending,” Mr. d’Aquino said.
The CCCE is Canada’s senior … Read more »
Top business leaders from across the country today pledged to work with all levels of government to help Canada weather the current economic storm and build a more secure future for all Canadians.
“We have confidence in Canada’s strengths,” the Canadian Council of Chief Executives (CCCE) said in a statement released after the organization’s Autumn Members’ Meeting in Montreal.
“Events beyond our country’s control have rocked global financial markets, sapping consumer and business confidence around the world. Canada cannot escape the consequences: our economy must deal with daunting challenges and our families and communities face real pain. No matter what we do, the economic situation is likely to get worse before it gets better, but governments and business can take action now to minimize the damage and lay the groundwork for early and sustained recovery.”
The full text of the Council’s statement can be downloaded from the CCCE website, at www.ceocouncil.ca.
The CCCE is Canada’s senior business association, composed of 150 chief executive officers and leading entrepreneurs from all major sectors and regions of the country. Its members met on October 27 and 28 in the presence of Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney … Read more »
Companies Pay Or Collect 49 Different Taxes, More Than Twice As Many As In The U.K.
Canada’s business tax system is complex and costly, challenging the country’s ability to compete internationally, a new study by PricewaterhouseCoopers (PwC) shows.
The 2007 Total Tax Contribution survey is based on a framework developed by PwC in the United Kingdom and encompasses all taxes paid by a company as well as all taxes collected by the company from its employees and customers on behalf of governments. A company’s total tax contribution is therefore a measure of its total impact on government revenues.
The survey found that companies in Canada are subject to 49 different taxes and 18 other payments to governments at the federal, provincial and municipal level. Adding to the complexity of Canada’s tax system, companies are subject to more than 200 possible “taxing points” — the number of tax obligations a business would be required to fulfill if it were subject to all taxes in all jurisdictions.
On average, the companies that took part in the survey spent $2.1 million a year to comply with these taxes. The average time spent on compliance was 19,863 hours, which translates to … Read more »
The 2008 federal budget takes modest but important steps to reinforce the competitiveness of the Canadian economy and highlights the need for prudent fiscal management at a time of growing global uncertainty, says the Canadian Council of Chief Executives (CCCE).
The projected budget surplus drops from a robust $10.2 billion in the current fiscal year to just $2.3 billion next year and $1.3 billion in 2009/10. “There is now very little room for error,” said CCCE Executive Vice President David Stewart-Patterson. “The forecast for economic growth in 2008 has fallen by 1.3 percentage points since the government’s October 2007 Economic Statement. A further drop of even half a percentage point over the course of a full year might be enough to tip the government into deficit.”
Federal spending growth is beginning to slow, but total program spending will reach $218 billion by 2009/10, an increase of $30 billion or 16 percent from 2006/07. “The government launched a new expenditure management system last year, and a continuing focus on the rigorous review and reallocation of existing spending is essential,” Mr. Stewart-Patterson said.
Given its tight fiscal constraints, the budget concentrates on measures that will produce real benefits at low cost. The … Read more »
Canadians Must Look Outward with Confidence, not Inward with Fear, CCCE says in Submission to the Federal Competition Policy Review Panel
Canada suffers from a culture of complacency and must revamp its public policies and intensify its corporate ambitions to be a leading global player, said Thomas d’Aquino, Chief Executive and President of the Canadian Council of Chief Executives (CCCE).
“In a world in which people, ideas and money move with incredible speed, Canadians must look outward with confidence rather than inward with fear,” Mr. d’Aquino said in a speech to the Economic Club of Canada. His remarks coincided with the release of the CCCE’s submission to the federal Competition Policy Review Panel, which is considering Canada’s foreign investment and competition policies in light of several recent foreign takeovers of major Canadian companies.
Mr. d’Aquino noted that the recent wave of international mergers and acquisitions had stoked fears about the potential “hollowing out” of corporate Canada, including a loss of head offices and an erosion of economic sovereignty. Those concerns are understandable, yet the most effective way to handle the challenges of globalization is not to hide behind national borders but to seize the opportunities created by an open global economy. “Put simply,” Mr. d’Aquino said, “the best defence against any potential loss of economic sovereignty is … Read more »
Comments by Thomas d’Aquino, Chief Executive and President of the Canadian Council of Chief Executives (CCCE), on today’s federal Economic Statement:
“The significant corporate income tax cuts announced today by federal Finance Minister Jim Flaherty will provide a powerful boost to Canada’s ability to compete for investment and jobs in the global economy.
“By giving Canada the lowest corporate tax rate among major industrialized countries and an advantage of more than 12 percentage points over the United States, this tax-cut plan will help companies to continue to invest and grow in Canadian communities despite the rapid rise of the Canadian dollar and intense global competition.
“The Canadian Council of Chief Executives agrees that the next step is for comparable action by provincial governments, and we strongly support the goal set by Minister Flaherty of a combined federal-provincial corporate income tax rate of 25 percent.
“We support the federal government’s intention to work with provinces that still have retail sales taxes to adopt instead value-added taxes harmonized with the Goods and Services Tax. As Minister Flaherty noted, this would be the single most important action that these provinces could take to improve their ability, and that of Canada as a … Read more »
Broadly based tax cuts, improved border infrastructure and increased support for innovation are among the keys to securing Canada’s economic prosperity and fostering more and better jobs for Canadians, says the Canadian Council of Chief Executives (CCCE).
“The federal government addressed these issues squarely in last night’s Speech from the Throne,” said Thomas d’Aquino, Chief Executive and President of the CCCE. “At a time when many Canadian companies are being challenged by a high dollar, a weakening United States economy, high energy prices and intense competition from emerging economies such as China and India, the future prosperity of all Canadians is at stake. We urge parliamentarians from all parties to work together to make Canadian communities better places to invest and to create well-paying jobs.”
In particular, Mr. d’Aquino applauded the government’s commitment in the Throne Speech to bringing forward, as early as this autumn, a long-term plan of broadly based reductions in personal and corporate income tax rates. At the same time, he noted the important speech made last week by Liberal Party Leader Stéphane Dion calling for significant new corporate tax cuts.
“As Mr. Dion pointed out, corporate tax cuts are the best way to drive investment and … Read more »