Economic action plan 2015 highlights small and medium sized businesses

Minister of National Revenue highlights Economic Action Plan 2015 measures to support small and medium-sized business.

Minister Findlay meets with leaders of the Taiwanese community in the Greater Vancouver Area

May 19, 2015 – Vancouver, BC – Canada Revenue Agency

The Honourable Kerry-Lynne D. Findlay, P.C., Q.C., M.P., Minister of National Revenue, hosted a roundtable today with leaders of the Taiwanese community in Richmond, BC on the Government of Canada’s red tape reduction efforts and new measures proposed in Economic Action Plan (EAP) 2015 to support small and medium-sized businesses.

Economic Action Plan 2015 proposes to:

• reduce the small business income tax rate from 11% to 9% by 2019;
• establish the Small Business Consultation Forum, in collaboration with the Canadian Federation of Independent Business (CFIB);
• reduce the frequency of payroll remittances (for example: CPP and EI contributions) to the CRA, from monthly to quarterly, for new employers with monthly withholdings of less than $1,000, starting in 2016; and
• ensure that business owners and other filers are not being unfairly penalized by making sure penalties for repeated failure to file don’t exceed the amount a filer would pay if gross negligence penalties were applied.

In September 2014, the Government of Canada also introduced the Small Business Job Credit, a two-year measure that effectively lowers the Employment Insurance premiums for small businesses for two years. The savings will help small businesses create jobs and support Canada’s economic growth.

The Government is working closely with small and medium-sized business owners and their stakeholders to reduce red tape and help these businesses thrive. The Government has already significantly reduced the red tape burden by:

• eliminating more than 800,000 remittances for over 50,000 businesses;
• improving and simplifying its communications to businesses;
• launching its first tax-related mobile app for businesses;
• expanding online payment options with the launch of pre-authorized debits;
• requiring all business phone enquiries agents to use a standard Agent ID when dealing with a business; and
• introducing the Liaison Officer Initiative to help businesses get their tax affairs right from the start. Economic Action Plan 2015 proposes to make this initiative a permanent program of the Canada Revenue Agency.