Canada Needs Tax Changes to Remain Competitive

November 30, 2016 Taxation in Canada

Taxes in CanadaOTTAWA – Canada needs to consider significant changes to its tax system, if it wants to remain competitive against major economies such as UK and USA.

In a new report, researchers from the Canadian School of Public Policy claimed that Canada may be losing out on international business and investment due to a local trend of raising the rate of taxes faced by businesses.

It was noted that in the report that the climate, vastness, and cost of doing business in Canada has been a detraction for international businesses looking at the country, although, in recent times Canada has been increasing its attractiveness as a business destination through a concentration on tax competitiveness.

However, recently the federal and provincial governments of Canada have opted to raise the taxes on businesses and cut back tax incentives which may have drawn in business and economic activity.

The report further claims that other major economies with which Canada competes, such as the UK and the USA, are now becoming increasingly vocal about their intentions to not only drop their own corporate tax rates, but also about their intentions to increase tax incentives.

In order for Canada to remain competitive on a global scale, the country must now improve tax neutrality among different economic sectors, review and re-target tax subsidise and incentives, and re-shuffle the national budget to allow room for targeted tax cuts to encourage investment and business activity.