Budget 2012: The path is clear for transformational changes

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PwC provides insight into the upcoming federal budget

TORONTO, March 8, 2012 — According to PwC, Budget 2012 is expected to put forth changes to Canada’s Economic Action Plan to address its current fiscal situation and to enhance economic growth and create jobs.

“This will be a transformational budget where the government will look to do things differently and be clear about its mandate,” says Roxanne Anderson, PwC’s Federal Public Sector former Leader. “Budget 2012 presents an opportunity for the government to make significant changes to spending, revenue generation, back office operations and how it will support research and innovation.”

According to Anderson, Budget 2012 should communicate the government’s strategies for cutting expenditures and adapting to economic changes. “Similar to running a smart and efficient business, the government will need to be clear about its plans for modernization, creating back-office efficiency and promoting growth.”

Nick Pantaleo, PwC’s Canadian National Tax Services Leader adds: “Canadian businesses will be looking for Budget 2012 to support investment opportunities at home and abroad. This includes staying the course on corporate tax cuts, modernizing the tax system to attract additional investment and stimulate exports and supporting Canadian innovation.”

PwC’s Budget 2012 recommendations include:

  • Continue with the planned corporate tax rate reduction and consider fulfilling government’s long term revenue needs with a more efficient tax base and revenue mix
  • Realize the current plan for fiscal balance through the various spending restraint initiatives, most notably the Deficit Reduction Action Plan (DRAP)
  • Increase our international trade, investment and tax agreement efforts, particularly with emerging countries, to expand the global reach of Canadian businesses and increase exports
  • Ensure that Canada’s financial sector maintains its respected soundness through appropriate regulation and surveillance
  • Consider opportunities to improve the compliance and administrative costs of Canada’s scientific research & and experimental development program
  • Follow the direction of the UK and other countries and consider introducing patent or innovation box legislation to enhance the development and commercialization of intellectual property in Canada

PwC has a team of specialists available for comment regarding the upcoming federal budget. Please contact Kiran Chauhan, (416) 947-8983, or David Rowney, (416) 365-8858, for more information.

PwC’s full letter of federal budget recommendations (http://www.pwc.com/ca/budget) are also available from the media contacts.

Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.

About PwC Canada

PwC Canada helps organizations and individuals create the value they’re looking for. More than 5,700 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with close to 169,000 people in 158 countries. Find out more by visiting us at www.pwc.com/ca.

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