The Canadian Chamber of Commerce is launching an independent review of the Canadian tax system. (ID 110889073 © Nuthawut Somsuk | Dreamstime.com)

By Josh Ryan

Reducing complexity

National Chamber launching review of Canadian tax system

Aug 5, 2020 | 2:10 PM

Canada’s taxation system is going to come under the microscope from an independent source.

The Canadian Chamber of Commerce has launched a tax review, overseen by eight special commissioners that will engage business owners and tax experts over the next two months. The goal of the Chamber’s review is to find a more competitive, simpler and fair tax system for Canadians in the wake of the COVID-19 pandemic.

“Canada will have to walk a fiscal tightrope between the need to reduce debt and deficits and supporting economic growth. The fastest and least painful path to recovery is by encouraging business investment and job creation. Reconceiving our tax system to rebuild our economy will be critical to Canada’s ability to recover from COVID-19’s impact,” President and CEO Perrin Beatty said.

The Canadian Chamber’s Chief Economist, Dr. Trevin Stratton, said everyone must mobilize private capital, not just public money.

“An independent tax review will help identify what needs to happen to grow our economy out of this crisis and generate the revenue needed to pay for pandemic spending,” Stratton said.

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The news is being warmly received from chambers in Saskatchewan. Linda Machniak, chief operating officer for the Battlefords Chamber, said this is an important step for the future.

“They’re hoping to bring changes that can help foster growth in Canada and that’s really important,” Machniak said. “This is very good news.”

When the idea was tabled in 2019, the Battlefords Chamber was a staunch supporter.

“We were one of the chamber’s that put forward that motion last year at the Canadian chamber to say, we need a review of the Canadian tax system,” Machniak said.

One of the primary reasons chamber networks have asked for this review over the years is how increasingly difficult the tax system is to navigate. Machniak said successive governments over the past decade have continued to add layers and layers that have made it almost painfully complex, resulting in each government choosing not to look at potential fixes.

“More requirements, more complexity, more submissions paperwork, those kinds of things,” she said.

The review will follow a similar model to independent approaches in the UK and Australia, both of which resulted in changes that were eventually adopted by public officials. Business leaders are encouraged to join the movement by contributing ideas to help make the tax system simpler and more transparent.

“It doesn’t have to be so complex that only a handful of people can understand it,” Machniak said.

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josh.ryan@jpbg.ca

On Twitter: @JoshRyanSports