An agreement reached between the Canadian Federal government and the provincial Ontario government will simplify corporate taxes by 2009. The Ontario tax return, known as the CT23, will be amalgamated with the Federal return.
Ontario Finance Minister Greg Sorbara had this on the much-lauded move:
“Businesses have been asking us to reduce administrative overlap and duplication,” the Ontario treasurer said. “When governments work together, we can improve efficiency and help businesses free up resources that they can then invest in creating jobs.”
There’s no doubt this is a great move to simplify taxes in Canada – it leaves Alberta and Quebec as the only remaining provinces that require separate returns.
I’m not sure how much this is going to save businesses, however, since the only major difference between the information on an Ontario return compared to a federal one is with capital tax. I suppose that’s why the savings is only $100-million for all business in Ontario.
I hope this means only one Notice of Assessment to deal with, and a single toll-free number to call and get instalment amounts and other details.
But it will certainly allow the government(s), if they can manage it, to slim down and make operations more efficient on that side. I like to think we’re all winners when government improves.