March 01, 2010 09:01 ET

Deloitte Tax Specialists Available for Federal Budget Commentary

TORONTO, ONTARIO--(Marketwire - March 1, 2010) - Senior leaders from Deloitte's tax practice are available to discuss what the 2010 Canadian federal budget means for both Canadian business and individuals — from a tax and general business perspective. Both national and regional specialists are available to provide insight on a wide variety of tax and federal budget-related issues. They are also able to comment on how businesses can make the most of the current situation.

For a forward-looking analysis on creating a business climate that propels corporate growth and furthers Canada's international competitiveness, Deloitte leaders are available to discuss:

1. Removing tax barriers that prevent badly needed foreign investment in Canada

Specific changes must be made to Canada's cross-border tax policies, or foreign venture capitalists (VCs) will continue to take their money elsewhere, resulting in the loss of future jobs and tax revenue. The overwhelming majority of foreign VCs are not subject to Canadian tax when they sell an investment, but face a delay of many months to work through the tax clearance process until funds can freely flow to them. Many foreign VCs are structured such that each of the investors in the VC — sometimes hundreds or even thousands — is subject to this clearance process as if they held the investment directly. As well, these investors are obligated to file annual Canadian income tax returns even where they are not liable for Canadian income tax.

2. Stimulating business investment in Canada by introducing SR&ED tax credit refunds

With many countries improving their scientific research and experimental development (SR&ED) tax incentive regimes, global competition for R&D using tax incentives has increased dramatically over the last few years. Canada has yet to introduce SR&ED tax credit refundability to all businesses. This move would help align the risk involved in R&D investment with the incentive provided by the immediate cash benefit. Introducing tax credit refundability will have the added benefit of addressing the foreign tax credit issue encountered by Canadian subsidiaries of U.S. companies. If Canada is to compete in attracting more innovation investment by multinationals, it must launch a SR&ED tax credit refund program for all companies.

3. Enhancing Canada's international tax advantage by reducing corporate tax burdens

Many Canadian companies are forced into the international arena earlier in their life cycle than many foreign competitors based in countries with larger domestic markets. As a result, they face greater operational and tax risks, challenges, and costs than these competitors. Changes can be made to reduce the administrative and financial burden on Canadian companies that operate internationally and on foreign companies with Canadian operations.

About Deloitte Canada's tax practice

With the largest tax practice in the country (over 1,500 professionals in 44 offices), Deloitte offers a full suite of tax services to clients in all industries across the country. The market leader in shaping the "future of tax", Deloitte influences Canadian tax policy with the goal of creating a business climate which propels corporate growth and furthers Canada's international competitiveness. Known for its industry-leading expertise, Deloitte's tax practice sets the standard of excellence in Canada and is the only Big Four professional services firm in the country to receive a Tier 1 ranking in the prestigious International Tax Review (ITR)'s "World Tax 2010" report. For further information on Deloitte's tax practice, visit and for further information on the "future of tax", visit

About Deloitte

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,700 people in 58 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu.

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms.

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