June 10, 2018

Version 4

 Century Tax Regime

 Advancing the development and adoption of tax reforms will spur the growth of innovative firms and boost Canada’s ROI (Return on Investment) on our investments in Research and Development. ” (CATAAlliance)

Ottawa, ON…CATAAlliance (www.cata.ca), Canada’s One Voice for Innovation Lobby Group, is calling for the creation of a 21st Century Tax Commission, with a non-partisan mandate to consult on and identify measures that can make the federal tax system fairer; better balanced; simpler; and much more supportive to the growth of Canada’s investments in innovation.  

There is concern today that the current regime can be counterproductive to these core objectives for a national tax regime.

CATA argues that it is imperative for Canada’s future economic and social prosperity that a public discussion take place about the benefits of change within the context of these objectives.

The New Commission will bridge a 55 year gap since Prime Minister Diefenbaker took the same step with the appointment of the Carter Tax Commission.

The top recommendation of the Carter Tax Commission was that fairness should be the objective of the taxation system and that goal remains a top target today.

According to CATA spokesperson, and global entrepreneur, Terry Matthews,   ” We continue to face massive transformational changes to Canada’s economy, in part driven by new technologies, such as blockchain, AI (Artificial Intelligence) and digital commerce.  We must get ahead of the curve and have an open, targeted debate on how to create a tax regime for the 21st century that effectively supports the growth of all Canadians’ investments in the country.”

CATA CEO, John Reid, added, ”Aside from changing technologies, and the impact of how other countries have updated their tax systems, some recent reasons for the proposed Tax Commission include: the observation that too much of our R&D knowledge and creativity is being lost offshore; the Paradise Papers, which demonstrated the misuse of offshore tax havens; last summer’s federal Finance Minister’s small business tax reform consultative debacle; and the shared view of many that one needs a degree in tax law to understand and cope with the complicated legislation and ill defined and often capricious rules and compliance procedures of the Tax Administrator.”  

A 21st Century Tax Commission with a mandate targeted to these objectives would be a powerful tool to investigate how to provide a path forward to a fairer; more balanced; and simpler tax regime in which innovative businesses can grow, increase productivity, and better contribute to a prosperous and dynamic Canadian economy and society.    

The aim would be that Canadians would see the benefits of concrete, workable change through recommendations for one of the most important things any government does – collect taxes from all of us to pay for the public services such as security, health care, education, public safety, and infrastructure that underlie a strong and durable economy and society that, in turn, support and sustain us.

Mandate  & Terms of Reference 

The new Commission would look at all taxes and fees paid by both small and large corporations and develop a comprehensive plan for a 21 Century tax system that benefits all Canadians. 

Led by subject area experts, the proposed Tax Commission would deliver its reports within one year for both short-term and long-term measures, requiring further evaluation and consensus building.

Some specific terms of reference:

  • comparing the Canadian tax regime with those of other jurisdictions, including research on administrative models and new models of innovation support and the treatment of IP being developed by competitor nations;
  • determining what current tax approaches and administrative models successfully support competitiveness, and how these tax regimes and models can be used and improved to support a 21st Century economy.  Particular attention needs to be given to US tax regime and its evolution; and,
  • recommending on the need for targeted and general tax cuts impacting the business environment and the redeployment of tax incentives to support the transition of the economy to industries of the future.

Video commentary by John Reid (click here to view, Facebook Live)

Matthews concluded, “Part of tax fairness is using understandable language — what taxes you have to pay and why. There has to be a simpler way for all of us to pay our fair share of taxes and a better 21st Century public policy model for value creation. 55 years is too long to wait for such an examination.”

Call to Action: Engage!

Please contact Russ Roberts, Sr. VP, Tax, Finance & Advocacy, CATAAlliance (email: ruroberts@cata.ca, coped to jreid@cata.ca) to advance nominees for the Commission and/or provide guidance on the advancement of this advocacy. We are also interested in confirming your interest in a video interview and/or a quote where you speak to the importance of creating a 21st Century Tax Commission.

Now using the URL of this release, please contact your peers and post to social media our call to action to advance this advocacy Campaign.

About CATAAlliance
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The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. (No Tech Firm Left Behind)

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Contact: CATAAlliance at info@cata.ca, tel: 613-236-6550, website: cata.ca, tags: Innovation, Leadership, Entrepreneurship, Advocacy