October 20, 2017
ITAC Supports Tax Proposals for ICT Sector
Toronto, ON — The Information Technology Association of Canada (ITAC) is supportive of the changes the Federal Department of Finance has made to tax proposals regarding tax planning using private corporations, and will continue to collaborate with government to ensure the tax system works for Canada’s technology industry.
ITAC is the voice of Canada’s information and communications technology sector – representing over 330 tech companies across the country. Two-thirds of ITAC’s members are Canadian small and medium-sized enterprises.
ITAC has been actively consulting with the Department of Finance and ISED on the proposed tax changes since mid-summer to ensure the proposals do not have negative impacts for Canada’s technology industry. In ITAC written submission to the Finance consultation (available here), ITAC identified several areas of concern.
Over the past week, the federal government has made several announcements that directly address many of these issues.
ITAC’s President & CEO Robert Watson notes, “We raised concerns with Government noting that the previous proposed changes could have unintended consequences for Canada’s ICT industry and innovation among SMEs, they listened”.
ITAC raised a number of specific concerns around lifetime capital gains, angel investment and passive investments, and the government has announced their plans to address each of these areas.
Watson added, “Entrepreneurs drive the technology industry and it’s important the tax system encourages and rewards people who take risks. It’s notable that Government took the initiative to engage industry, understand our concerns and address them. We look forward to ongoing discussions with this government moving forward to flush out the details of these proposals.”
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