Simple change means 50,000 small businesses required to file taxes less often
Toronto – To wrap up Red Tape Awareness WeekTM, the Canadian Federation of Independent Business (CFIB) announced this morning that the Hon. Kerry-Lynne Findlay, Minister of National Revenue, is the winner of the 2015 Golden Scissors Award, for a simple change to tax policy that will allow small businesses to file their payroll taxes less often.
Under the old policy, many mid-sized businesses had to remit payroll taxes to CRA weekly. Some of those businesses will now only have to remit those taxes twice a month, and some smaller businesses that paid twice a month will now only have to remit monthly. While the amount they have to remit won’t change, some 50,000 small and medium businesses will save a whole lot of time on paperwork.
“This is an excellent example of government walking the walk when it comes to red tape reduction,” said CFIB’s executive vice president Laura Jones. “This may not seem like a big deal, but when you cut a business owner’s paperwork, it means more time for the owner and their employees to focus on growing the business and serving their customers, provided that CRA clearly and appropriately communicates the changes to businesses.”
“Under Prime Minister Harper’s leadership, our Government remains committed to reducing red tape for businesses across the country,” added Minister Findlay. “In Economic Action Plan 2014, our Government revised the remittance thresholds for employer source deductions. That change means that over 50,000 small and medium-sized employers will see the maximum number of required payments on account of source deductions cut in half, eliminating more than 800,000 payments. That’s 50,000 businesses who now have less reporting, and therefore less red tape. That’s 50,000 entrepreneurs who now have more time to focus on growing their business, employing Canadians, and supporting our economy.”
The winner, chosen from among dozens of nominations from across the country, will receive a trophy, framed certificate, and recognition on the CFIB website, Facebook page and member communications.
Last year’s Golden Scissors winner was Stewart Young, mayor of the city of Langford, B.C., for introducing a permanent business license and doing away with annual renewals. This change cost the city some revenues, but the mayor and council agreed it was the right thing to do to free up entrepreneurs to create jobs in the city.
In addition to the winner, two Honourable Mentions were also announced today:
In the category of Stopping Stupid, Nova Scotia Finance Minister Diana Whalen. Minister Whalen did away with regulations, inherited from a previous government, that would have required scrap metal dealers to collect and store sellers’ personal information and verify ‘proof of ownership’ for each transaction.
In the category of Producing Measurable Results, Naheed Nenshi, Mayor of Calgary. The mayor led the Cut Red Tape initiative, reaching out to small business owners to better understand the challenges businesses were facing when dealing with the city. More than 200 suggestions were submitted, and several were implemented, saving a combined $2.8M for the city and small businesses.
Visit www.cfib.ca/rtaw for complete information on the week-long effort by CFIB to bring attention and meaningful action to reduce red tape on small businesses.
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.