Small Biz to Gov: Red Tape-Trimming Targets for 2010

(GHY International)

The Canadian Federation of Independent Business (CFIB) has proposed ten specific areas for governments to work on in 2010 that will lighten the $30 billion annual load for Canada’s businesses.

According to CFIB’s latest report, 81% of small businesses believe that government does not consider the impact on business when it regulates. “Making progress on the list below would go a long way towards demonstrating that government values the critical contribution that small businesses make to Canada. It’s not comprehensive, but it is a good start,” said CFIB’s vice-president of national affairs, Corinne Pohlmann.

The following three recommendations may be of particular interest to clients:

Create a GST/HST Taxpayer Fairness Code
Canada Revenue Agency (CRA) should adopt a GST/HST Taxpayer Fairness Code. Complying with sales tax rules is the top frustration of small business owners. Businesses collect sales tax revenue on behalf of government and deserve good customer service, including clear answers to questions in a timely manner. The Tax Fairness Code should be modeled after BC’s code where business owners have the right to get questions answered in writing and any written government tax advice will be respected even if it is wrong. Taxpayers need to trust that if they have followed guidance provided by CRA officials, they will not be penalized.

Bring fairness and accountability to the Canadian Food Inspection Agency (CFIA)
Agri-business owners understand that a certain amount of regulation is important for food safety, but the CFIA could significantly improve the way it interacts with small businesses. A recent small business report card on CFIA found that fairness is lacking and many feel they have no recourse when dealing with CFIA authorities. A Food Producers’ Ombudsman with real powers to oversee how CFIA interacts with small businesses should be appointed.

Simplify the customs process
Canada Border Services Agency (CBSA) should reform the Duty Drawback program. Claiming customs duty refunds imposes such onerous paperwork burden on Canadian firms that many smaller firms who import and export are forfeiting money owed to them or choosing to operate in the U.S. rather than in Canada. One farmer has to fill out 400 forms for every container imported. His paperwork then has to be stored for seven years. The government should eliminate unnecessary duties and reduce record retention requirements for remaining duties.

Read the complete list of recommendations here.