Financial Executives International Canada (FEI Canada)

Financial Executives International Canada (FEI Canada)

October 05, 2010 10:30 ET

FEI Canada Calls on the Federal Government to Simplify the Tax System

OTTAWA, ONTARIO--(Marketwire - Oct. 5, 2010) - The leading association representing Canada's senior financial executives called on the federal government today to reduce the complexity of the taxation system and its compliance requirements in future budget proposals. Financial Executives International Canada (FEI Canada) said simplification – rather than the addition of more complexity – should be the goal.

Simplifying the cumbersome tax act is critical to helping Canada's businesses stay competitive on the global playing field, and should be a key priority as the federal government prepares its next budget, according to Michael Conway, Chief Executive and National President of FEI Canada, which represents more than 2,000 chief financial officers and other finance executives across the country.

"If you look at it from a macro viewpoint, companies are a large source of tax revenue for the government, and these same companies are devoting an inordinate amount of time and money on compliance, when their managers could be spending more time advancing corporate growth and profitability," Conway said at a presentation at a meeting of the House of Commons standing committee on finance. "Simplifying the tax act would help make companies – and the government – more efficient, and thus, more competitive."

Conway pointed to the results of a recent study by the Canadian Financial Executives Research Foundation (CFERF), which explored the compliance burden weighing on companies. For a copy of this study, please click here.

Improvements to the tax system that would help Canadian businesses thrive include some form of group tax reporting for companies, such as the implementation of a loss transfer system, Conway said. These measures would help Canadian companies increase their productivity, a critical issue made even more urgent by the rise of the Canadian dollar, he said.

Other issues raised in the submission include: productivity; deficit reduction; economic renewal and retirement planning.

"Budget initiatives should protect and speed-up Canada's progress through economic recovery. Our proposed tax measures conform to these objectives," Conway said. "We strongly urge the government to consider these measures and implement them in budget 2011."

To see the full text of FEI Canada's remarks, please click here or look for FEI Canada's 2011 Pre-Budget Submission here.

About Financial Executives International Canada (FEI Canada)

FEI Canada is the all-industry professional membership association for senior financial executives. With eleven chapters across Canada and more than 2,000 members, FEI Canada provides professional development, thought leadership and advocacy services to its members. The association membership, which consists of Chief Financial Officers, Audit Committee Directors and senior executives in the Finance, Controller, Treasury and Taxation functions, represents a significant number of Canada's leading and most influential corporations. Visit www.feicanada.org.

Contact Information

  • Media Contact:
    FEI Canada
    Christian Bellavance
    Vice President, Research and Communications
    416.366.3007 Ext. 5114
    cbellavance@feicanada.org