Tax system requires review: CPA survey

It’s time for a review of Canada’s tax system, says a survey of chartered professional accountants (CPAs).

The latest CPA Canada business monitor (Q4 2017) shows that a majority (71%) agrees Canada needs a comprehensive review of its tax system.

CPA Canada has been a proponent of a tax system review to reduce complexity, ensure economic competitiveness and increase system fairness.

U.S. protectionism and other concerns

For the fourth-straight quarter, U.S. protectionist trade sentiment is viewed as the top challenge to Canadian economic growth, cited by 29% of respondents. Next was economic uncertainty (12%) followed by the state of the U.S. economy (11%).

When it comes to Canada’s economic growth, only 3% of those surveyed said U.S. tax reform is a top challenge. (The survey was conducted from Nov. 29 to Dec. 18, 2o17, before U.S. tax reform passed.)

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Balanced budgets were also top of mind. Three-quarters of those surveyed agreed that the federal government should set a target date to return to a balanced budget.

“Establishing a target date would guide the government’s fiscal and economic planning, instil greater confidence among consumers and investors, create opportunities for growth and enhance Canada’s competitiveness,” says Joy Thomas, president and CEO of CPA Canada, in a release.

Read the full survey.

About the CPA Canada business monitor: Results are based on a Nielsen survey of professional accountants in leadership positions. Emailed surveys were completed by 377 of 4,676 candidates identified by CPA Canada as holding senior industry positions (CFOs, CEOs, COOs and other leadership roles). The response rate was 10%, with a margin of error associated with this type of study of ±5.0%.

Also read:

How CRA spends your tax dollars