An income tax rate to be reviewed in Canada

The Fraser Institute from Canada believes that the government of the country is obliged to introduce a full-scale reduction of the marginal values ​​for income tax rates. As stated in the tax development report, a federal income tax reform may improve Canada’s financial and economic climate in the near future.

The report’s authors claim that recent changes in provincial and federal tax rates “have damaged Canada’s international competitiveness.” Experts believe that the individual tax system has become incredibly difficult for both the tax authorities and taxpayers.

The report also says that the cost of enforcing tax payment is also increasing, which also adversely affects the business climate in the country.

The authors of the document argue there is a possibility of reforming tax expenses (such as loans, recoupment and other special preferences).

 “For reducing a large amount of tax expenses, it is necessary to expand the payment base of the state, thereby reducing the burden on entrepreneurs. This will allow the Government to use the acquired resources to reduce marginal tax rates,” experts say.

According to Canadian media, the national income rate will remain at a rate of 15% without significant changes at least until the end of the Q3 2019. The tax rate in different provinces of Canada can also undergo transformations, but only if the executive decides to revise.

Economists believe that while the federal government is conducting a review in this area, there will be no significant changes. However, experts believe that when adopting a new income rate, the flow of capital to Canada and its rating of doing business will multiply.

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