by Mike Godfrey, Tax-news.com, Washington
17 May 2017
Canadian business leaders regard protectionist trade sentiments in the US as the biggest challenge to the Canadian economy, according to a survey published by Chartered Professional Accountants Canada (CPA Canada).
CPA Canada has released its Business Monitor for the first quarter of 2017. It said that there has been an increase in business optimism, with 38 percent of the business leaders surveyed optimistic about the prospects for the Canadian economy over the next 12 months, up from 32 percent in the previous quarter. This figure was also up year-on-year, compared to the 22 percent recorded in the same quarter in 2016.
However, when asked to identify the main challenge to the growth of the Canadian economy, 23 percent cited protectionist sentiments in the US. This was followed by oil prices (17 percent), uncertainty surrounding the Canadian economy (14 percent), and the state of the US economy (14 percent).
Joy Thomas, President and CEO of CPA Canada, commented: “Uncertainty remains a constant shadow over the country’s growth prospects because of trade and oil prices but the business leaders are not allowing themselves to be paralyzed by it as demonstrated by the climb in optimism.”
72 percent of respondents believe that a comprehensive review of the country’s tax system is necessary. Respondents said this should involve the introduction of competitive personal and corporate tax rates, a reduction in complexity, and modernization of the system.
Thomas said: “There has not been a thorough review of the country’s tax system since the mid-1960s, and over that time incremental, ad hoc changes have obscured the underlying tax framework and its integrity. There is a pressing need to strip away those accumulated layers and re-calibrate our tax system to improve Canada’s productivity, economic growth, and international competitiveness.”
Published at Tue, 16 May 2017 19:00:00 -0500