Keeping Up With the Small to Medium Business Economic Action Plan 2015
Things that seem to be taking place within our government in regards to business appears to come in waves. Last year there was a lot of fan fare about the action plan, then all the hype around it fizzled out. Now here we are again where it is creeping into the news once again.
This a government endeavor and includes the CRA. One of the latest happenings was with Minister Findlay who is the Minister of National Revenue met with the Taiwanese community it Richmond BC. The gest of the meeting evolved around the red tape that the government is trying to reduce in regards to businesses, plus the new measures that are being proposed in the 2015 Economic Action Plan.
What’s the good news for 2015?
- The proposal is to reduce the current 11% small business income tax rate to 9% by 2019. That is something that is significant for the future perhaps.
- Develop a Small Business Consultation Forum to work in conjunction with the Canadian Federation of Independent Business. There doesn’t seem to be an actual date set for this.
- This may open the doors for more communication between the business world and the government. However, it would prove to be of value if what is being said in the forum is being looked at seriously and acted upon when viable.
- Reduction of payroll remittances. This is a good move as most businesses are inundated with the various remittances they have to make on a ongoing basis, which just paves the way for increased errors. This is going to come into action in 2015.
- Unfair penalties: A closer look at making sure that unfair penalties are not being implemented for repeated failures to report income. These should not exceed the penalty amounts for that which is applicable to gross negligence penalties. Again no specific date as to when this will come into force.
So there we have five good actions, however only one of them shows an actual date of coming into effect as of 2015. So it seems a little over the top to call this a 2015 action plan unless there is a mandate in place to ensure this is all going to come into play during this year.
- So what has the previous action plans that were so widely touted accomplished?
- In 2014 there was the small business job credit. This gives small business a 2 year period of lower EI premiums. This was supposed to be an incentive to encourage small businesses to increase their hiring.
- The Federal Government is claiming that they have reduced eliminated in excess of 800,000 remittances which was applicable to 50,000+ businesses.
- Communication is supposed to be improved and simplified for businesses.
- A new app. That is tax related and works for mobile was released for businesses.
- New payment options were implements.
- Tax agents contacted via the telephone now have to provide an Agent ID number.
- A new Liaison Officer initiative was implemented.
You as a business owner would need to look these over carefully and determine if any of these measures both those that are being proposed, and those that have been put into action have any significant or major impact towards your business.
If you are looking towards those that are yet to come, don’t forget that we are in an election year, and things could change drastically.