Businesses hoping for less complexity, more certainty on Budget Day
As Minister of Finance Bill Morneau prepares to table an Election Year Budget on March 19, RSM Canada, the leading global provider of audit, tax and consulting services focused on middle market businesses, has announced three areas Canadian middle market companies are hoping are addressed in the upcoming Federal Budget.
- Urgently address competitiveness with global markets: While the implications of tax reform in the United States were still relatively unknown leading up to last year’s Federal Budget, Canada’s middle market companies now have a clearer picture. External market pressures combined with economists predicting an economic downturn in the year ahead have middle market companies feeling squeezed.
- Reduced complexity to foster innovation: Canada – especially Ontario – is increasingly becoming a hub for digital and eCommerce companies, but Canada’s tax system maintains a heavier focus on traditional brick and mortar companies. Homegrown digital companies are hoping to see this year’s Budget reduce complexity in the Canadian tax legislation to help their businesses grow, while allowing for greater innovation and economic growth across the country.
- Fiscal responsibility: Canada’s middle market businesses would like to see fiscal responsibility and a proper mix of income tax and consumption taxes to prevent further burden on individuals and companies that are already paying higher taxes to cover deficits and spending. While a balanced Budget is not realistic in the near future, middle market companies are hoping for a more focused timeline from the government than the current one, which has the Budget balanced by roughly the year 2040.
“With rising interest rates and the overall slowing of the economy, Canada’s middle market businesses are concerned about growth prospects in 2019. More specifically, the impact of the U.S. tax reform is being felt by Canadian enterprises, while complex tax legislation is making it hard for innovators to thrive and grow here at home. On top of that, it now looks like Canada’s Budget won’t be balanced for at least a couple decades, so we’re really hoping the Finance Minister will address some of these issues in the Budget,” said Maria Severino, National Tax Leader, RSM Canada.
RSM’s purpose is to deliver the power of being understood to our clients, colleagues and communities through world-class audit, tax and consulting services focused on middle market businesses. The clients we serve are the engine of global commerce and economic growth, and we are focused on developing leading professionals and services to meet their evolving needs in today’s ever-changing business environment.
RSM Canada LLP provides public accounting services and is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms with more than 41,000 people in 116countries. RSM Alberta LLP is a limited liability partnership and independent legal entity that provides public accounting services. RSM Canada Consulting LP provides consulting services and is an affiliate of RSM US LLP, a member firm of RSM International. For more information visit rsmcanada.com, like us on Facebook, follow us on Twitter and/or connect with us on LinkedIn.