Tax review a missed opportunity to tweak gst tax regime
On Friday, the federal minister responsible for the GST announced that the budget would include a review of the tax legislation’s curre우리카지노nt rules to tweak the tax regime.
In May, the federal government announce우리카지노d the formation of a commission to examine whether there should be changes to GST reform in response to the Parliamentary Budget Office’s report earlier this year that the GST is an outdated tax with a negative revenue impact.
A number of reports have since been issued recommending improvements to the GST that would affect businesses and other segments of the economy, ranging from an elimination of the surcharge on income from offshore companies to a reduction in the GST rate to $9.60 per dollar earned outside the country.
The Finance Department’s announcement comes as some business groups have called on Mr. Mulroney to remove the surcharge on offshore profits from the GST framework. The surcharge is set to be increased in coming weeks by the finance minister in consultation with the provinces, which is expected to cut the tax revenue of businesses from $100 billion a year to $70 billion.
An April report from the Conference Board of Canada and t우리카지노he University of British Columbia called on the government to cut the tax on income from foreign tax havens. It noted the tax increases will not have a significant impact on revenues, saying the existing system is sufficient to deal with major changes in business trends.
But with both Canada Revenue Agency and Finance Canada in the middle of implementing an overhaul of the way the tax has been structured, one industry group said Thursday that the move by Mr. Mulroney might not be enough.
“Given the changes he is making to the tax structure, the tax has to change,” said Andrew MacDougall, president of the Canadian Chamber of Commerce and Industry. “I expect it to require more change by the Liberal government.”
Mr. MacDougall said the CCCI’s analysis shows there are still significant opportunities for changes to the GST framework should it be brought forward, but only “when the government is confident in its ability to enact these changes.”