Financial Executives International Canada (FEI Canada)

Financial Executives International Canada (FEI Canada)

March 30, 2012 16:38 ET

FEI Canada Supports Move Towards Balanced Budget

TORONTO, ONTARIO--(Marketwire - March 30, 2012) - FEI Canada is pleased with the federal government's actions to eliminate the deficit by 2015-16 by managing its spending and without raising taxes.

"Returning to a balanced budget will provide a sound fiscal platform for the Canadian economy and Canadians to prosper," says Michael Conway, Chief Executive and National President of Financial Executives International Canada. "Solid fiscal management positions Canada well to address ongoing challenges such as world economic uncertainty and the costs of an aging population."

FEI Canada was one of the first organizations to recommend to the federal government the merits of simplifying the Canadian taxation system. FEI Canada again urges the government to establish a task force to review the Federal Income Tax Act and propose recommendations to simplify the burdensome task of tax reporting in this country for both taxpayers and the government. FEI Canada continues to believe that a consolidated tax reporting system, for both income tax and GST/HST reporting, should be an objective of this government early in its mandate. FEI Canada also believes that a mandatory settlement process during tax audits is the most cost effective manner for both taxpayers and the government to reduce ongoing tax disputes. Such a process should be implemented as soon as possible.

"Innovation plays a significant role in achieving a strong and sustainable economy," says Mr. Conway. In this regard, FEI Canada is encouraged by the government's support of innovation in the start-up phase, but believes that such funding should cover costs from the onset of the innovation idea to its commercialization to foster organic growth in Canada. However, FEI Canada is concerned that proposals to eliminate eligibility of capital expenditures may discriminate against companies that perform capital intensive research and development projects, which could result in these projects leaving the country. FEI Canada also strongly believes that the scientific research and development tax credit should be the same for both private and public companies since the current system provides a disincentive for small growing private companies to seek public financing.

A solid economy is built on domestic growth, which is driven by the free flow of capital both within Canada and with key international trading partners such as the United States. As part of the government's stated objective to expand trade and open new markets for Canadian businesses, FEI Canada recommends the federal government eliminate withholding taxes on dividends paid to the United States and other major trading and investing partners.

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 1800 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. For further information, please visit www.feicanada.org.

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