The St. John’s Board of Trade believes the proposed changes (The Proposals) will have significant negative impacts on Canadian businesses, the middle class and women:
- Higher taxes;
- Increased administrative burden on small & medium sized enterprises;
- Financial impact on family-run businesses; and
- Reversing gender parity gains.
We believe the impact of these changes are not yet fully understood by tax professionals, taxpayers or the Department of Finance, and that a significantly longer consultation period is required.
- Stop The Proposals until the impacts can be fully understood.
- Extend the consultation period. The length of consultation should be commensurate with the degree of wholesale changes proposed. A 12 to 18 month consultation period would be consistent with the significance of the changes being proposed, and would allow for meaningful consultation.
- Establish a royal commission on taxation to undertake a comprehensive review of the taxing statues guided by the principles of simplification and modernization, with a goal of reducing compliance costs to enhances Canada’s competitiveness.
- Establish a standing committee with active representation from the SME community to support the commission by continuously monitoring changes and publicly reporting progress at least annually.
- Consider proper grandfathering and phasing-in of changes in the taxation system of small businesses.
- The Proposals must undergo a gender-based analysis.
- The Proposals must recognize and reflect the importance of small business to the economic engine of the country.
- The Proposals, particularly in the area of succession planning must take into consideration the real restrictions present in rural areas of the country.
Click to read the full submission, Taxing Planning Using Private Corporations.”