One of the biggest complaints that small business owners across Canada have is the complexity of the tax system and the red tape they have to endure when dealing with the tax department. It would appear that the Government does listen and in fact has been listening way back since 2010. Now listening is one thing but it’s nice to see some action being taken on what is being said.
In 2010 there were the Red Tape Reduction Commission’s Consultations where irritating factors to small business were identified. Then two years later the CRA conducted their own consultations. Now here we are one year later, and finally there is the newly launched CRA Red Tape Reduction Action Plan. I guess the old saying, “better later than never”, would be applicable here, however if one were 3 years late in their taxes it would not be considered as such.
In any event there are some positive changes being made which is good news for the small Toronto businesses, as well as for those right across Canada as this is a Federal tax project. How much impact it will have on you as a business person will depend on how much the CRA has hampered you in the past.
The other question it raises is does it mean you will no longer need the help of a Toronto accountant to help you with your business financial matters? The answer to that is not likely. While the red tape may be reduced it doesn’t remove the complexity of the tax obligations. What it may mean though is you will have to spend less time dealing with complex tax matters and can concentrate more on your business.
The crux of the CRA Red Tape Reduction Action Plan is so that you can handle your tax obligations in an easier manner, so you can save time and money. One more incentive to this program according to the CRA is that it will create more jobs in the community. This raises an interesting point as to maybe being the real factor to get the ball rolling on addressing some of the business irritants regarding the tax department. We know the government is under a lot of pressure to strengthen the economy and maybe this is the real reason why they have decided to take some action to make things easier on the small business. With less red tape more businesses will start and established ones may expand increasing the job market.
So just what are the specifics of this new concept? Well apparently there are 12 action plans that are going to be implemented. To keep you informed in the next little while we will cover each of these in an article so you can get a real grasp of what this new Plan has in store for you.
In the meantime, don’t forget the year is drawing to a close and if you don’t have your Toronto tax accountant yet, now is the time to be getting one on board to assist you with your 2013 taxes.
