Thursday, April 3, 2008

CHECK AGAINST DELIVERY

Mr. Speaker, the McGuinty government wants to help businesses do what they do best: create jobs and foster a strong economy.

We believe that a streamlined, efficient and effective tax administration system is an important way to support these goals.

As the Minister of Revenue, I rise today to tell the House that this government is delivering on its commitments to Ontarians and Ontario businesses through major changes that we are making to Ontario's corporate tax administration system — changes that will mean significant cost savings for the business community.

Beginning this month, through an agreement we have negotiated with the Federal government and the Canada Revenue Agency, Ontario corporations will start seeing compliance cost savings from integrated audits, rulings, objections and appeals for all pre-2009 taxation years.

This means that effective today, Ontario businesses will only have one authority to deal with for these functions. This initial step will be followed by the implementation of a single integrated corporate tax return beginning next year.

Mr. Speaker, going forward, Ontario businesses will have only one corporate tax return, one corporate tax administration and one set of tax rules with which to comply, not two.

Through this reduction in administrative overlap and duplication, we estimate that Ontario businesses will save up to $100 million in compliance costs every year and a further $90 million annually in reduced Ontario corporate income tax.

In the words of Len Crispino, President of the Ontario Chamber of Commerce, "Corporate tax harmonization is a big win for Ontario businesses. We estimate that this streamlining will save Ontario businesses $100 to $200 million each year in time and money, creating room for more investment in the things like human capital, new equipment and research and development that will make our economy grow."

Judith Andrew, Vice-president of Ontario for the Canadian Federation of Independent Business has noted, "[t]his will save time, hassle and money in the compliance load on small- and medium-sized businesses."

The Toronto Board of Trade has said that this harmonization initiative is "like a $100 million dollar tax cut for Ontario's businesses", which they expect will help stimulate the economy and job creation.

I would like to extend my sincere thanks to the staff at the Ministries of Revenue and Finance, as well as staff at the Canada Revenue Agency, who are ensuring a smooth transition as we move to the new administrative regime. They have done a tremendous job and I am very grateful for their hard work. I would particularly like to recognize the following people for their leadership in moving this initiative forward: my Deputy Minister, Colin Andersen, and Revenue Commissioner, Angela Longo; and project leaders, Bob Laramy and Marion Crane.

Mr. Speaker, this government, under the leadership of Premier Dalton McGuinty, is committed to creating a competitive environment for Ontario's businesses and taking concrete steps to build a vigorous economy that benefits all Ontarians. This initiative is just the latest example of how we are delivering on our commitments.

Thank you, Mr. Speaker.

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