Canadian business concerned about U.S. trade, tax plan

U.S. trade policy and the tax plan before Congress are paramount concerns for Canadian business leaders, according to a survey conducted for Chartered Professional Accountants of Canada (CPA Canada).

The latest CPA Canada Business Monitor (Q3 2017) finds almost three-quarters of respondents (74%) agree that U.S. corporate tax cuts will pose a competitive challenge for Canadian businesses, but more than half (58%) say the proposed cuts will not impact their company’s planning over the next year.

“There is a wait-and-see approach right now, but the competitive landscape is changing,” said Joy Thomas, president and CEO of CPA Canada, in a release. Further, she says, “We have an opportunity to strengthen Canada’s position through a comprehensive review of our tax system, one that promotes fairness, simplicity, and efficiency.”

Read: How U.S. tax reforms affect cross-border clients

Protectionist trade sentiment in the U.S. is the top challenge for the Canadian economy, say 29% of respondents.

Still, 47% of those surveyed are optimistic about the Canadian economy’s prospects over the next 12 months, down slightly from 50% in Q2 2017. In the third quarter last year, optimism stood at 21%.

Forty percent report feeling neutral about Canada’s economic outlook, while 13% say they are pessimistic.

Sustainability and long-term value

Sustainability issues, defined in the survey as embedding the management of environmental and social issues into strategy and business processes, will impact long-term value creation, say 61% of respondents.

Another 46% say they’re already incorporating sustainability into their overall business strategy, while 17% say they intend to. More than one-quarter of respondents (28%) have no plans to embed sustainability into strategy.

Read: U.S. expats might get lower tax bills

About the survey: The Q3 2017 CPA Canada Business Monitor was conducted by Nielson between Sept. 29 and Oct. 15, 2017. Emailed surveys were completed by 493 of 5,036 respondents identified by CPA Canada as holding senior positions in industry (CFOs, CEOs, COOs and other leadership roles).

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