Thank you, Mr. Chair, and members of the committee.
I am Greg Gallant, and I am a member of the board of Chartered Professional Accountants of Canada, also known as CPA Canada, and I'm a partner with Grant Thornton in Toronto.
Let me start by stating the obvious. We are in a long period of slow growth in Canada and in most advanced economies. However low it may be, economic growth matters. The pursuit of policies and investments that will spur growth and support social development is the aim of this budget process. It is also CPA Canada's desire to play a role in helping the government achieve growth for the benefit of Canadians.
Before I share a few of our recommendations for budget 2017, let me tell you about our organization.
CPA Canada serves as the national and international voice for Canada's more than 200,000 chartered professional accountants who work at home and abroad. CPAs are in executive, finance, business, and accounting roles in the private and public sectors.
There can be no doubt that the tax system plays a critical role in Canada's economic growth and the prosperity of our citizens. Canada's tax system has become complex, unfair to some, and costly to comply with and administer. Major national organizations, including CPA Canada, as well as the economists, academics, and think tanks have all called for a comprehensive review of Canada's tax system.
Canada has not had a thorough review of its tax system for over 50 years, and consider how much has changed since 1966. It's time for change. That is why CPA Canada applauds this committee for passing a motion to undertake a comprehensive review of the Income Tax Act and the Canadian tax system, and prepare a report.
In our pre-budget submission, we outlined the principles and outcomes necessary to guide this tax review. Canada needs a 21st-century tax system, a simple, predictable, fair, efficient, and transparent tax system. We need low internationally competitive tax rates where everyone pays their fair share, so that all Canadians prosper.
We urge the committee to launch its study at the earliest opportunity, so that your recommendations can be considered for the next federal budget. We look forward to the opportunity to contribute to the committee's work on this review.
Time does not permit us to speak on all policy recommendations in our submission. They include maintaining the importance of strong fiscal management, making responsible investments in infrastructure that focus on long-term sustainable goals, integrating internationally trained professionals in the workforce quickly, strengthening financial literacy, and continually innovating and adapting, so that Canada maintains its enviable quality of life.
I will speak briefly on the last point concerning innovation and climate change adaption.
First, on innovation, we recommend the government implement a patent box, enhance the SR and ED tax credit program, and adopt standardized business reporting. The government's focus on innovation is most welcome for its potential to improve Canada's productivity. Too often the discussions of innovation involves largely around research and development. We think Canada must seriously look at how to boost demand for Canada's innovations, target high-potential firms, focus on human resources, and create a business landscape that encourages firms to invest and commercialize their innovations.
Secondly, regarding climate change, we are encouraged by the government's commitment to transition to a low-carbon economy through its pan-Canadian framework. CPAs are helping businesses to manage that transition and to adapt to climate-related impacts that are so costly to our economy and society. For these reasons, we recommend the government build on its leadership role and develop a national adaptation plan that engages all affected stakeholders, including the private sector.
CPA Canada appreciates this opportunity to provide the accounting profession's views and recommendations on public policy issues that contribute to inclusiveness and sustainable growth.
We welcome your comments and questions.
Thank you.