Thank you, Madam Chair.
Good morning, everyone.
Thank you, honourable members of the committee, for inviting me to speak today.
As president and CEO of the Chartered Professional Accountants of Ontario, I'm here to bring the perspectives of more than 105,000 CPAs in Ontario, which is almost half of all CPAs in the country, to this important discussion on budget 2025, Bill C-15 and the future of the Canadian economy.
At Davos, Prime Minister Carney laid out the stakes. Canada's economy is facing a “rupture,”,not a “transition”. He said, “We have a recognition of what's happening and a determination to act accordingly.”
Given the foundational role that CPAs play in Canada's capital markets and the economy, the profession is ready and willing to step up and help drive the economic growth that Canada needs now more than ever.
As tax practitioners and advisers, CPAs understand the important role that tax policy plays in empowering growth or constraining it, which is why we were pleased to see Bill C-15 propose some important measures to address long-standing issues with Canada's tax system.
For instance, CPA Ontario has advocated the restoration of the accelerated investment incentive through the productivity superdeduction. This reinstatement will help to boost investment and allow faster depreciation of capital assets. It will enable firms to recover capital costs more quickly, enhance cash flow and encourage reinvestment into Canadian businesses and Canadian workers.
Capital is always looking for stability. In times of upheaval, certainty would be a competitive advantage for Canada, which is why the accelerated investment incentive and other provisions in the productivity superdeduction would be even more impactful if they were made permanent. Investment is key to Canada's future, but that investment needs to go to the sectors where it will yield the greatest benefit.
Our natural resources are still essential for building Canada's future, but we all know that the global economy has changed. Intangible assets, such as intellectual property, artificial intelligence and data now play a critical role in economic prosperity and national sovereignty. Our tax system must evolve to reflect this reality.
The simplification and expansion of the SR and ED tax credit in Bill C-15 was a welcome change, and one that Canada's innovators and entrepreneurs have long advocated, but this is not a moment that can be met with incrementalism. Canada must be bold, ambitious and willing to act. We must recognize that after decades of a piecemeal approach to tax policy, we have a system that is unwieldy and complex, and that complexity is a barrier to investment and growth.
As tax specialists, CPAs can see the consequences first-hand as capital is diverted away from where it can be put to the best use. Bill C-15 makes some efforts to address this, including through the proposed elimination of some inefficient tax expenditures, but we are still a long way off from a necessary and, frankly, overdue broad review of Canada's tax system—a robust expert review that could be used as a blueprint for a tax system that drives growth, competitiveness and productivity for Canada. Reforming our tax system will help Canada attract the investment, entrepreneurship and talent that will grow our economy, create jobs and raise the standard of living for all Canadians.
Echoing Prime Minister Carney, “Nostalgia is not a strategy”. He also said, “Now we need to execute. Fairly. And fast.”
Thank you. I look forward to answering any questions you may have.