Terms of Reference
Background
The Minister of Finance announced in the 2004 Ontario Budget the creation of the Small Business Tax Administration Tax Advisory Committee (SBTAAC).
The inaugural Small Business Advisory Committee first met in January 2002 and delivered its findings in October of 2002. The committee proved to be an effective means for identifying tax administration concerns of Ontario small businesses and garnering feedback on initiatives being conducted by the Ministry of Revenue's Tax Revenue Division (TRD).
Like its predecessor, the new SBTAAC will consider administrative issues for those tax statutes administered by TRD.
Purpose
The purpose of the SBTAAC is to:
- identify and discuss new ways of simplifying tax administration and cutting red tape;
- provide TRD with a direct means of garnering feedback from small business on tax administration initiatives; and
- provide small business with an opportunity to present the Ministry of Revenue with suggestions for simplifying tax administration procedures.
Scope
The scope of the committee's purview will be limited to the Ontario taxing statutes administered by TRD, with an emphasis on Retail Sales Tax. Property taxes are beyond the scope of this committee.
The committee will focus on tax administrative issues. However, each year the SBTAAC will participate in a pre-budget consultative session with Ministry officials, during which tax policy issues will be addressed.
Management of the SBTAAC Meetings
The Assistant Deputy Minister of TRD will chair the SBTAAC meetings. TRD staff will provide administrative support to the committee.
Composition of the Committee
In addition to the chair, the SBTAAC will include:
- Ministry of Revenue representatives from TRD; and
- up to twenty Ontario small business owners.
Small business members may serve one to three year terms. Individual terms will be staggered to provide the committee with continuity.
Selection of the Small Business Representatives
SBTAAC small business representatives may be individuals who own and operate a small business in Ontario (a "small business" is defined as an enterprise that generates gross annual revenues of less than $2,000,000) or representatives of Ontario business associations that include small businesses. Individual small business persons or association representatives may be nominated by approved business organizations.
Collectively, the membership will be chosen with the objective of representing:
- each type of legal entity (e.g. proprietorships, partnerships, and corporations);
- the major Ontario business sectors - including retail, manufacturing, service, transportation, and hospitality;
- new and mature businesses;
- various geographic regions of the Province; and
- remitters of the major Ontario business taxes (Retail Sales Tax, Employer Health Tax, Corporations Tax, Fuel Tax, Gasoline Tax and Tobacco Tax).
Final approval of small business members will be made by the Minister of Finance.
Frequency and Location of Meetings
The committee will hold three or four meetings annually - including the pre-budget consultation session - primarily in the Greater Toronto Area.
Honoraria and Expenses
No remuneration in the form of stipends or honorariums will be offered to committee members. Travel expenses will be reimbursed by the Ministry of Revenue according to guidelines established by Management Board of Cabinet. Details regarding travel expenses and the process for reimbursement are provided in the Member's Handbook.
