Complying with CRA Less Taxing for Businesses In Canada

Regulatory burdens for businesses are becoming less taxing in Canada, according to a 2014 study by PricewaterhouseCoopers, which analyzed the ease of paying taxes in 189 countries. 

It found that preparing, filing and paying taxes each year takes a business in Canada 25% less time than a business in the United States. This information formed part of a September 17 information event by Minister of State (Finance) Kevin Sorenson, who was promoting the government’s commitment to the business community.

Small businesses with $500,000 of taxable income have also enjoyed a 34.2% decline in their tax burdens, a federal tax savings of $28,600. Reductions in the small business tax rate and increases in the small business income limit are providing an estimated $2.2 billion in tax relief in 2014.

In addition, a new Small Business Job Credit will reduce EI premiums in 2015 and 2016 to save over 90% of all EI premium-paying businesses in Canada more than $550 million – a cost reduction of about 15%.    

According to a 2012 Study by KPMG, top concerns of family businesses include

• obtaining new customers (59 percent),
• increasing revenues (51 percent), and
• cost controls/ constraints (50 percent).

But the study indicates that of special importance to family businesses are issues related to succession of ownership (40 percent) and succession of senior management (35 percent).