UPDATE BC batch The provincial b...

UPDATE

BC batch

The provincial budget will be tabled onward February 19, 2002. Representatives of the ICABC will be attending the package lock-up in Victoria and will issue a just discovereds release and provide comment to the media.

The Institute will be looking for a multiyear approach to business tax rates that will endeavour to remain competitive with Alberta and Ontario. the one and the other Alberta and Ontario are reducing their general corporate income tax rates to 8% and increasing their small business tax starts to $400,000 by 2004 and 2005 respectively. In the bag consultation meetings held late last year, the ICABC told the Finance and rule Services Committee that BC must despatch a signal to investors that it will travel beyond the vague promises of competitiveness in last year's economic update. Specifically, the management must provide certainty to investors by means of committing to a multi-year program of business tax reductions.

The Institute will also be seeking a long-term due management plan from the restraint While we've been supportive of the government's amendments to the Balanced package Act, we've expressed concern that the flush of public debt has not been given adequate attention at this point in the mandate.

The ICABC will also be encouraging the BC sway to harmonize the provincial sales tax with the GST

The freshs release on the budget will be stationed on the ICABC website upon the afternoon of February 19th

2002 Legislative Agenda

It's look fored that the next session of the legislature will feature undivided of the busiest legislative agendas in years. The session begins with a sovereignty Speech on February 12th.

In addition to the issue of competitiveness, as mentioned above, we perceive the government also needs to address harmonization and fairness. In particular, we believe corporate legislation must be harmonized with other provinces and states by means of a new Company Act, and that our partnership law must be harmonized with the stop of North America by restoring fairness to the personal liability of partners.

In addition, the Company Act also emergencys to address the lack of fairness imposed onward CA firms by joint and several liability. We're continuing in our efforts to have joint and several liability replaced by dint of a modified proportionate liability regime similar to the federal corporations act.

CA Business view

Results from the CA Business prospect survey, summarized in this issue of Beyond Numbers, indicate that chartered accountants in BC are true supportive of the provincial government's economic policy agenda-- particularly when it approachs to business and personal tax carves

But while there is capable support for the government's economic policy direction, the Institute will wait for the 2002 legislative session to papal court if its "open for business" guarantee lives up to expectations and experiment upons to be more than just rhetoric.

The ICABC's of recent origins releases on the CA Business watch are available in the Media midmost point section of the ICABC website at www.ica.bc.ca.

by Craig Fitzsimmons, Manager of Public Affairs

Copyright Institute of Chartered Accountants of British Columbia Feb/Mar 2002

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