Good morning, Mr. Chair, members of the committee. Thank you for inviting CPA Canada to participate in today's hearing.
My name is Joy Thomas. I am a chartered professional accountant, and effective April 1, 2016, I became the president and CEO of CPA Canada.
CPA Canada is the national professional body representing more than 200,000 Canadian CPAs. Our responsibilities include the development of the CPA education program, as well as continuing professional development programs. CPA Canada also supports Canada's internationally respected, independent standard-setting process, and provides guidance to support high-quality corporate reporting and business practices in Canada and globally. We do this in the public interest.
CPA Canada was created in 2013 as part of the nationwide unification of Canada's provincially regulated CAs, CMAs, and CGAs. In the spirit of collaboration, we created one profession carrying one designation: chartered professional accountant.
I'm here today in that spirit of collaboration.
At home and abroad, we have a long record of working constructively with those who develop the programs and the policies that are essential economic, social, and competitive tools for all governments. This collaborative approach is strongly endorsed as a best practice by the OECD. This is particularly important when it comes to ensuring tax policy is aligned with the changing business environment.
Examples of our collaboration include our representation on many government panels and committees such as: the advisory panel on Canada's system of international taxation; the minister's underground economy advisory committee; the CRA/CPA Canada framework agreement, to help Canada maintain a world-class tax system; and Finance Canada's public-private sector advisory committee on anti-money laundering, anti-terrorist financing. These are just a few examples of how we have collaborated with the government to implement tax reforms, and to combat tax evasion and other illegal practices.
Our position on tax evasion has always been clear, and it was set out in a 2013 white paper, “Tax evasion is Illegal. Illegally avoiding tax—by disregarding the law, by not reporting taxable income, and by hiding funds offshore”—is harmful to our economy, to our society, and to the rule of law.
At the same time, taxpayers have always been entitled to plan their affairs to reduce the tax they owe, provided the steps taken comply with the law. We all do this, even when we contribute to an RRSP, for example. Still, tax law remains very complex, so it should come as no surprise that there are times when the taxpayers and the CRA will disagree.
Continuing in the spirit of collaboration, I'd like to briefly set out some suggestions to address these issues going forward. First, income tax law is extremely complex. Simplifying the act needs to be on the agenda. Second, along with other national associations, academics, and think tanks, we have called on an overall review of our tax system. Third, we continue to support investment in CRA's enforcement efforts as set out in budget 2016. Fourth, it is important for us to have a good discussion about balancing CRA's need for objective information with the taxpayer's right to confidential advice, to maintain a healthy self-assessment tax system. Finally, the government needs to consult widely with taxpayers and various stakeholders as it moves forward.
CPAs work with millions of Canadians each year. Chartered professional accountants volunteer countless hours at tax clinics and financial literacy sessions in communities across Canada, and we hear directly from Canadians and gather feedback to support and inform our participation on committees such as this one.
Canadians have the right to demand a fair and equitable tax system, one that attracts both businesses and talent. CPA Canada advocates for a tax system that reflects the best interests of all Canadians. We are pleased to engage with this committee and the government in a respectful discussion about tax policy, and we appreciate this opportunity to contribute to the ongoing discussion.
Thank you very much.