Red Tape Reduced in Ontario: Businesses Stand to Save $136 Million Annually
FOR: CANADA REVENUE AGENCY
MAR 23, 2012 - 11:00 ET
OTTAWA, ONTARIO--(Marketwire - March 23, 2012) - The Honourable Gail Shea, Minister of National Revenue, and the Honourable Dwight Duncan, Ontario Minister of Finance, highlighted today the results of a study that estimates that Ontario businesses will save $136.7 million a year as the result of the single administration of Ontario's corporate tax.
The report was prepared by PricewaterhouseCoopers LLP after it conducted a large-scale survey of businesses in Ontario. The survey results showed that single administration will save businesses an estimated $136.7 million annually and that 90% of the total savings will be realized by small businesses.
"Our Government recognizes the importance of small and medium businesses to the Canadian economy. The last thing small business owners need is to be bogged down with needlessly redundant paperwork. Single administration of corporate tax leads to tax simplification - one set of rules, one tax return, one audit, one appeal process. It means less red tape, reduced costs, and a more efficient system, and it builds on our low-tax plan for jobs and growth across Canada," said Minister Shea.
"By working together, we have modernized an outdated tax system and are making businesses more competitive and creating the right climate for job creation," said Minister Duncan. "In addition to the $136.7 million identified in this report, the harmonization of the provincial sales tax through the HST has further reduced the cost of paperwork on businesses in Ontario. Our government remains committed to working with our federal partners to remove overlap and duplication, bring efficiency to the Ontario public sector and create prosperity for our families and communities."
The administration of Ontario's corporate tax was transferred from the Ontario Ministry of Revenue to the Canada Revenue Agency (CRA) for tax years ending after December 31, 2008. Before single administration, businesses had to deal with both the Ontario Ministry of Revenue and the CRA to meet their corporate tax obligations. Under single administration, businesses file only one tax return and deal with only the CRA for all matters related to corporate tax.
The PricewaterhouseCoopers LLP report is posted on the CRA web site at: http://www.cra-arc.gc.ca/whtsnw/tms/ctao-airso-eng.html
FOR BROADCAST USE:
The Honourable Gail Shea, Minister of National Revenue, and the Honourable Dwight Duncan, Ontario Minister of Finance, highlighted today the results of a study that estimates that Ontario businesses will save $136.7 million a year as the result of the single administration of Ontario's corporate tax by the Canada Revenue Agency.
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