This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CICA Gives Federal Budget A B Plus Rating

TORONTO, March 21, 2013 /CNW/ - The Canadian Institute of Chartered Accountants (CICA)* gives the federal government a B Plus rating for a budget that focuses on balancing the books while providing targeted funding to spark economic activity.

The government is committed to returning to balanced budgets by 2015-16.

"With lingering economic uncertainty, the government's focus remains a multi-year incremental approach to balancing its books that allows for the funding of initiatives aimed at creating jobs and economic growth," explains Gabe Hayos, vice-president, taxation, with the CICA. "However, it is essential that the government stays on course and gets its finances in order if Canada is to achieve a sustainable recovery."

The budget outlines a fiscal framework that features a skills training initiative, infrastructure funding and new investments to support manufacturing and innovation in Canada.

There are no significant personal or corporate tax increases but the government is taking action to preserve its tax base. The budget looks to close tax loopholes, address aggressive tax planning, clarify tax rules, reduce international tax avoidance and tax evasion and improve tax fairness. It also provides the Canada Revenue Agency with new tools to enforce the tax rules.

"We support efforts to maintain the integrity of the tax base, but the CICA will work closely with Finance and the CRA to ensure that casting such a broad net of actions does not result in unintended consequences," says Hayos.

The CICA would have preferred to see more action to reduce the complexity of Canada's tax system, making the country more attractive for investment.

The Institute welcomes greater disclosure requirements for scientific research and experimental development claims without further restricting contingency fee arrangements relating to the tax incentive program. "This is something we recommended," stresses Hayos. "The ability to engage third-party preparers on a contingency fee basis often allows companies to increase innovation spending."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs