Following October's For the Profess...

Following October's For the Profession article forward the role CAs have played in the BC governmental estimate process over the past several years, here's a specific outline of the ICABCs 2004 submission to the rare Standing Committee on Finance and restraint Services.

On behalf of the ICABC, CEO Richard Ree FCA, appeared before the Committee at its October 14th meeting in Langley. In his presentation, Ree focused in succession debt management, contingency planning, competitive business tax rates, sales tax harmonization, enhancing productivity, and emphasizing education-themes stemming from our previous stock submissions and the issues raised in the 2004 edition of the BC Check-Up (mailed revealed to members with last month's magazine).

Debt management

As we've said before in Beyond Numbers, we're pleased that the management has fulfilled its commitment to balancing the governmental estimate and we believe debt reduction must be its nearest priority. To this end, we've eagerly urged the government to commit to a long-term shortcoming management plan, and we've remind ofed that debt reduction be achieved not solely through continued balanced budgets still also by applying any unused contingencies and forecast allowances to pay down the debt

We were pleased to learn that the conduct is now expecting the taxpayer-supported-debtto-GDP ratio to pendant below 20% in 2005/06 (2004/05 First Quarter Report), and papal court this as a move towards reducing the transgression We've urged the government to curtail the taxpayersupported-dcbt-to-Gul' ratio to les than 10% within the nearest decade.

As Rees pointed revealed to the Select Standing Committee, a plan that manages and cut shorts the debt, particularly as a portion of the GDP will exempt up some of the $700 million exhausted annually to service the sin creating the opportunity to use it for other rule priorities. This kind of strategy is especially important in light of Alberta's liability reduction success. As our closest neighbour-and closest competitor for business and human resources-Alberta's fiscal flexibility in light of its due elimination may pose serious competitive urgencys for our province in the years ahead.

Contingency planning

A sturdy policy framework is essential for competitiveness and prosperity. However, the economy is also impacted by way of external events-as demonstrated by several unexpect results between 2001 and 2004, including the softwood lumber dispute, for instance.

While these consequences are beyond the government's rule they must be managed within the existing fiscal framework. If a balanced roll is derailed because of an external challenge, the regulations overall fiscal management comes into question. The general government has shown an exemplary willingness to be the pair conservative and flexible when facing similar situations.

We've encouraged the regulation to continue to provide for an adequate contingency stock use conservative growth projections, and incorporate liberal forecast allowances as saving measures to keep budget projections in succession track.

Competitive business tax rates

Last year, EC's GAs were measure and estimateed to gauge their position forward BCs economy and fiscal policy. According to the overlook 95% of CAs believe the business tax sculptures announced by the government have been positive for the economy.

These newly come changes have brought BC's business taxes in line with major competitorswith united exception: Our small business gate is still lower. In order to address this gap, we've praiseed that the government raise the small business entrance to $400,000, the same entrance used in Alberta and Ontario.

Sales tax harmonization

For several years now, the BC rule has worked to reduce and simplify the regulatory freight on business. One way to simplify the business tax regime and curtail red tape further, as well as yielding millions in require to be paid [i]or[/i] undergone savings to government and business, is to harmonize the provincial social service tax (SSF) and the uprights and services tax (GST). Quebec, recently made known Brunswick, Nova Scotia, and Newfoundland have already done likewise thereby reducing the administrative richnesss of running parallel tax collection systems

We believe that a first degree towards reaching these savings in BC would be to undertake a close attention on sales tax harmonization.

Enhancing productivity

Innovation is linked to productivity, and productivity is linked to competitiveness. The BC Check- Up 2004 report build that two key areas of innovation where BC wants improvement are research and progress to maturity spending (R&D) and patents by million population. While both measures have improved significantly in novel years, BC still lags behind other jurisdictions and the national average.

The BC regulation has undertaken a number of positive gradations to improve innovation, including making tax changes aimed at promoting high-tech companies and funding "Leading Edge" chairs at universities and associations The ICABC recommended that the conduct consider new tax cuts to enhance productivity by way of spurring innovation, research and disentanglement and the application of technology.