RICHMOND, BRITISH COLUMBIA -- (Marketwired) -- 05/21/15 -- Canada Revenue Agency
The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, hosted a roundtable today with Chinese small business owners and tax preparers in Richmond, BC on the Government of Canada's red tape reduction efforts and new measures proposed in Economic Action Plan (EAP) 2015 to support small and medium-sized businesses.
Economic Action Plan 2015 proposes to:
-- reduce the small business income tax rate from 11% to 9% by 2019;
-- establish the Small Business Consultation Forum, in collaboration with
the Canadian Federation of Independent Business (CFIB);
-- reduce the frequency of payroll remittances (for example: CPP and EI
contributions) to the CRA, from monthly to quarterly, for new employers
with monthly withholdings of less than $1,000, starting in 2016; and
-- ensure that business owners and other filers are not being unfairly
penalized by making sure penalties for repeated failure to file don't
exceed the amount a filer would pay if gross negligence penalties were
applied.
In September 2014, the Government of Canada also introduced the Small Business Job Credit, a two-year measure that effectively lowers the Employment Insurance premiums for small businesses for two years. The savings will help small businesses create jobs and support Canada's economic growth.
The Government is working closely with small and medium-sized business owners and their stakeholders to reduce red tape and help these businesses thrive. The Government has already significantly reduced the red tape burden by:
- eliminating more than 800,000 remittances for over 50,000 businesses;
- improving and simplifying its communications to businesses;
- launching its first tax-related mobile app for businesses;
- expanding online payment options with the launch of pre-authorized debits;
- requiring all business phone enquiries agents to use a standard Agent ID when dealing with a business; and
- introducing the Liaison Officer Initiative to help businesses get their tax affairs right from the start. Economic Action Plan 2015 proposes to make this initiative a permanent program of the Canada Revenue Agency.
Quick Facts
- For a small business with taxable income of $500,000, the reduction in the small business income tax rate and other tax relief measures introduced since 2006 will result in a federal tax reduction of 46% by 2019. (Source: Finance Canada, Strong Leadership: A Balanced-Budget, Low-Tax Plan For Jobs, Growth and Security, p.121.)
- The CRA consults regularly with the business community. Last fall, the Agency held more than 45 sessions with business owners, their bookkeepers, accountants, and stakeholder associations in more than 20 cities across Canada to further reduce red tape. A report on these consultations is expected in the spring of 2015.
- In January 2015, Minister Findlay received the CFIB's Golden Scissors Award, which honours elected officials and others in government who have shown leadership in cutting red tape.
Quotes
"Through tax relief and by cutting red tape Our Government is providing real support for small and medium-sized businesses in British Columbia and across the country. Economic Action Plan 2015 builds on our record of introducing new tax benefit measures that help Canadian entrepreneurs grow, create jobs, and generate economic prosperity in their communities."The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue
"Cutting red tape and keeping taxes low are important for small businesses to remain competitive here at home and in an increasingly globalized market. I'm glad for opportunities like this roundtable that allow entrepreneurs and tax professionals to share their concerns and their ideas with the Government." The Honourable Alice Wong, Minister of State (Seniors) and Member of Parliament for Richmond
Associated Links
www.cra-arc.gc.ca/business
www.cra-arc.gc.ca/redtapereduction
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Contacts:
Carter Mann
Press Secretary
Office of the Minister of National Revenue
613-995-2960
Philippe Brideau
Media Relations
Canada Revenue Agency
613-941-6269
