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Canadian Accountants Welcome Corporate Tax Cut Announcement,
by Carla Johnson, Investors Offshore.com, London
Friday, November 02, 2007
Canada's Chartered Accountants have been encouraged by the federal government's
plan to accelerate tax relief for individuals, families and businesses, according
to a statement issued on Tuesday.
Kevin Dancey, FCA, President and CEO of the Canadian Institute of Chartered
Accountants (CICA) announced that: "The government's commitment to reduce
the general corporate tax to a rate of 15% by 2012 is a positive step toward
making Canadian companies more competitive."
While Dancey welcomed the government's decision to reduce overall taxes and
to commit an additional $10 billion for debt reduction this year, he said corporate
taxes need to be reduced further and faster than currently planned.
CICA has been calling on the government to reduce corporate taxes, which it
believes are hampering the competitiveness of Canadian businesses.
The Institute first raised the issue in its submission to the House of Commons
Standing Committee on Finance in September, 2006, when it urged the government
to drive the general corporate tax rate down to the small business level.
"The additional percentage point reduction in the general corporate rate
in 2008, together with the plan to reduce the small business tax rate to 11%
next year, will help stimulate business growth and job creation," Dancey
observed.
However, he added that: "We'd like to see the government go faster and
even further, by reducing the corporate tax rate so that it matches the small
business rate, a move that would simplify the tax structure and enhance the
prosperity of all Canadian businesses."
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