Ministers’ Regional Office, Vancouver, B.C.
January 23, 2015
Check against delivery
Good afternoon. Thank you for that kind introduction. I am very happy to be here today and truly honoured to be awarded CFIB's 2015 Golden Scissors award.
The Canadian Federation of Independent Business (CFIB) is a strong and influential voice for small and medium businesses (SMEs) in Canada, and an important partner in our Government's efforts to support entrepreneurs.
Hearing directly from SMEs is the most valuable input we have when setting our red tape reduction priorities.
I am so pleased to have received two nominations for "leadership in freeing entrepreneurs from the burden of red tape". In fact, it was through meetings like today with small business owners and CFIB members like yourselves where the ideas that generated these nominations gained momentum. My role is to turn the suggestions I hear from you into actions that have a tangible benefit for all parties.
The first Golden Scissors nomination is for our Liaison Officer Initiative, which has been piloted in Ontario and Quebec, and, due to the success of the pilot, is turning into an ongoing service, soon to be available across the country.
The Liaison Officer Initiative is built on the desire to help businesses "get it right from the start". There are approximately 5 million business tax returns filed each year. About one third of these contain minor errors.
With the Liaison Officer Initiative, we are providing business owners with personal assistance in order to ensure accurate information is available at key points in their business' life cycle.
By identifying emerging issues and addressing questions early on, the CRA can stop them from developing into more serious problems that are difficult and expensive for taxpayers and the CRA to resolve.
The Liaison Officer Initiative is a unique opportunity for CRA to better understand the needs of small and medium businesses. I will lead the CRA in using these insights to improve the services and information we provide.
This proactive approach is not part of the traditional audit program. So these visits, reviews, and support arrangements will not result in any CRA-driven adjustments or changes to previously-filed income tax returns.
The second nomination I received, and the basis for the Golden Scissors award today, is our initiative to change tax threshold rules so 50,000 businesses can remit their taxes less frequently.
Again, it was in meetings like today where CFIB members from across the country told me that you needed simplified reporting obligations, and that most remittance thresholds were not current. Laura and her CFIB counterparts continued this discussion on your behalf, and in Economic Action Plan 2014, our Government took action and revised the remittance thresholds for employer source deductions.
The real impact of that change is that over 50,000 small and medium-sized employers will see the maximum number of required payments on account of source deductions cut in half. This eliminates the requirement for more than 800,000 payments.
That's 50,000 businesses that now have less frequent reporting to government, and therefore less red tape. That's 50,000 entrepreneurs who now have more time to focus on growing their business, creating jobs for Canadians, and supporting our economy.
As you know, our Government, under the leadership of Prime Minister Harper, is committed to our low-tax plan for jobs and growth. We are committed to keeping taxes low, helping businesses and entrepreneurs succeed, and making sure that Canada remains one of the best places in the world to invest.
Today, the overall federal tax burden is at its lowest level in over 50 years. This is an unprecedented achievement.
But we won't stop there.
We remain focused on helping hard-working Canadians prosper.
Every Canadian family with children will benefit from our new tax relief and benefit package - the Family Tax Plan.
On average, $1,140 will return to the pockets of families with children through this initiative. Let me take a minute to explain.
The family tax cut will provide tax relief of up to $2,000 for couples with children under the age of 18, starting with the 2014 tax year.
We are increasing the Universal Child Care Benefit (UCCB) from $100 to $160 per month for children under the age of 6 … and providing $60 a month for each child between the ages of 6 and 17. Both of these measures are effective as of January 1, 2015.
We are also increasing the maximum child care expense deduction amount by $1,000.
Beginning in the 2015 tax year, the maximum deduction amount will increase from $7,000 to $8,000, for children under age seven; from $4,000 to $5,000 for children aged seven through 16; and from $10,000 to $11,000 for children who are eligible for the disability tax credit.
Families and communities are the foundation of our society.
In addition to introducing numerous tax relief measures to support Canadian families, we continue to make unprecedented investments in infrastructure projects that will contribute to economic growth, job creation, and productivity in Canadian communities for years to come.
Our New Building Canada Plan will see federal investments of over $53 billion in infrastructure across the country over 10 years, from 2014 to 2024.
For British Columbia, this represents almost $3.9 billion in dedicated federal funding for infrastructure.
Tax cuts and quality infrastructure promote economic growth, job creation, and long term prosperity.
To maintain sustainable economic growth, our Government is tireless in our pursuit of those who cheat the tax system. We are ensuring fairness for those who play by the rules.
We target people "working for cash" … those who participate in the underground economy by failing to report or underreporting income.
An underground economy of any size is unacceptable. In fact, the very existence of a black market flies in the face of core Canadian values of fairness, honesty, and integrity.
I have invited key business associations whose members compete against the underground economy to be part of my newly formed Advisory Committee on the Underground Economy. Members include: CFIB, Canadian Home Builders Association, Canadian Retail Council, and Restaurants Canada, among others.
Our Committee:
- advises me and the CRA on current trends
- helps to identify emerging risks
- provides a deeper understanding of taxpayer compliance behaviour, and
- contributes to the development of innovative compliance tools.
Most importantly, through the Committee's reach, we are reducing the social acceptability of participating in the underground economy.
In supporting businesses and fairness, we are making it easier for taxpayers who play by the rules to be compliant.
On our last day of Red Tape Awareness Week, I want to present to you the Top 10 ways our Government is reducing red tape at the CRA for businesses.
- We have simplified payroll remittances! As you know, over 800,000 remittances for over 50,000 small and medium-sized businesses were eliminated after the CRA revised the remittance thresholds for employer source deductions.
- The mobile Business Tax Reminders app, allows businesses to create custom reminders and alerts for dates related to instalment payments, returns, and remittances.
- My Business Account lets businesses interact online with the CRA like never before! Through this self-serve tool, businesses can receive certain correspondence and submit documents to the CRA online.
- Businesses now have more freedom to manage their affairs online: such as updating banking and direct deposit information through My Business Account. All told, businesses can now complete 50 different kinds of simplified transactions online with the CRA.
- Advanced learning tools for auditors were developed, and the CRA created a dedicated team to address the needs of businesses. This is to ensure that the CRA considers the small and medium business perspective before making changes to programs and policies.
- It's now easier for businesses to find clear and understandable information—My Business Account Enquiries Service allows businesses to ask tax questions related to their account online, and receive information they can rely on, in writing.
- Business enquiries telephone service agents are now required to provide an AgentID. This AgentID increases accountability by ensuring a consistent and user-friendly experience for callers and making it easier for business owners to give feedback on CRA services.
- The Business Number (BN) allows businesses to be identified by one number while working with federal, provincial, and municipal governments. With one number, a business can work with six provinces and a number of programs with the CRA, Public Works and Government Services, Industry Canada, and Canada Border Services Agency. The CRA continues to seek opportunities to expand the use of the BN across government.
- The recently introduced Liaison Officer Initiative reduces the administrative burden by helping businesses to meet their tax obligations and "get it right from the start". The Liaison Officer Initiative provides in-person support to businesses when they need it most at key points of their business cycle.
- I have directed the CRA to consult with businesses every two years to ensure government action plans align with the priorities of small and medium businesses. These ongoing nationwide discussions provide a positive opportunity for small businesses to share their thoughts and ideas.
Okay maybe it should be a top 11 list…
….I have also championed a plain language initiative within the CRA to ensure taxpayers get clear, concise information that they can understand and act upon independently.
Too much red tape restricts innovation, productivity, and competitiveness. It's bad for business and bad for the economy.
Red tape affects businesses of all sizes, but the small and medium business sector is particularly hard hit. Put simply, the smaller the business, the greater the impact.
In a country like ours, where 98% of companies have fewer than 100 employees, the effect of red tape on the economy is significant.
With your help, we are finding effective and meaningful ways to cut red tape so that Canada's SMEs can more easily meet their tax obligations, saving time and money in the process.
Prime Minister Harper, a champion of the cause since creating the Red Tape Reduction Commission in 2011, calls red tape "the silent killer of jobs".
Before I close, I want to express my appreciation to the CFIB for their ongoing, honest and constructive feedback. I can assure you we are not only listening as you voice your members' concerns, issues, and ideas — more importantly, we are acting on them.
Thank you again. I promise to use these scissors to keep cutting!
