Thank you, Mr. Chair and members. I am Bruce Ball, the vice-president of tax at Chartered Professional Accountants of Canada, otherwise known as CPA Canada.
We are one of the largest and most respected national accounting organizations in the world, representing more than 210,000 chartered professional accountants at home and abroad. Collectively, CPA Canada and the profession enable, champion, and safeguard the Canadian ideal of good business that values inclusion, sustainable growth, and social development in cultivating a healthy and thriving economy. At CPA Canada we're committed to acting in the public interest, contributing to Canada's economic and social development, and helping Canadians, businesses, and the economy to succeed and prosper over the long term.
Permit me to highlight some of our priorities and recommendations for the next federal budget, as summarized in our pre-budget submission. First is responsible fiscal management, which needs to include a clear fiscal path to balancing the budget over the medium term. Next is an efficient regulatory environment for business. At CPA Canada we believe in regulatory excellence that makes it easier for businesses to comply, which facilitates trade and enhances job creation and growth opportunities. Another is a national adaptation plan that encompasses and coordinates all the aspects of adaptation in Canada to the changing climate conditions.
As a tax professional, though, I want to focus on one of our central recommendations, and that's the need for tax reform. CPA Canada has long called for a top-to-bottom review of Canada's tax system. Many other national organizations, leading think tanks, economists, and academics have joined the chorus as well. For the last four years, this committee has recommended that the income tax system be simplified and that a national consultation process should be launched. According to CPA Canada's recent “Business Monitor” survey, more than seven of 10 business leaders in Canada agree that such a review is required. With the government's proposed changes to the tax planning involving private companies, the call for a comprehensive tax review is growing even louder and more urgent.
I did hear the comments from before in terms of discussion about the private company consultation, but I think what's driving it for us is that at many business meetings and professional organization meetings, we have heard the call for tax reform being raised more and more. There is also a significant disconnect in what the government is saying about these proposals and what Canadian experts, a number of stakeholders, and our members are saying as well.
CPA Canada fully supports the government's commitment to a fair tax system that is internationally competitive, supports economic growth, and ensures that everyone pays their share of tax so that all Canadians prosper. This is in the public interest. However, in many respects the current proposals run counter to the basic principles of sound tax policy, in our view—concepts such as fairness, simplicity, competitiveness, efficiency, certainty, appropriately targeted tax measures, and being consultative. We therefore believe that these proposals are not in the public interest.
I'll list some of our many concerns about these proposals. First, they may adversely affect middle-class small business owners and entrepreneurs. They will create barriers to business investment, innovation, entrepreneurship, and job creation, harming Canadian competitiveness overall. Of significant concern is the complexity and uncertainty that we believe it will add to the tax system. We also believe that they could result in inappropriate tax results in some situations. Finally, they will raise the cost of compliance, the overall cost of doing business, and also the government's cost to administer the tax system.
These proposals also fail to provide enough time for taxpayers to bring their affairs in line with the changes. These proposals represent major policy changes to the rules that have been entrenched in Canada's tax system for decades, yet only 75 days were allowed for the consultation process. We believe it's crucial that the government examine all the alternatives before enacting these proposals into law. In fact, we believe it's time to hit the pause button and take a look at the issues more broadly.
In this light, we encourage the committee to launch its planned comprehensive review of Canada's tax system. We think this is now the time to stop and take stock. A fair, efficient, and competitive tax system is essential to sustainability and also to inclusive economic growth.
In summary, to achieve this, at CPA of Canada we firmly believe that a comprehensive tax review is required. Thank you.