Canada’s technology sector is the latest to take federal Finance Minister Bill Morneau to task over his government’s proposed tax reform measures, saying that Ottawa’s tax changes will limit access to capital that is vital for the growth of technology companies.
Several of Canada’s fastest growing technology companies, as well as leading investors, are urging Minister Morneau to meet with them before going ahead with the Liberal Government’s controversial tax-reform proposals.
In a letter sent to Finance Minister Bill Morneau, the “Council of Canadian Innovators” warns that Ottawa’s tax proposals will limit tech entrepreneurs' access to capital, which is critically important for their companies' future growth, as well as job creation within the sector.
The association also says the tax changes, if implemented, will create uncertainty for corporate tax planning, intensify a brain drain of technology talent away from Canada, and negatively impact Ottawa's investments to help technology firms scale-up and compete internationally.
The letter was sent as a consultation period on the proposed tax changes comes to an end. The government of Prime Minister Justin Trudeau has been locked in a public communications war with vocal opponents to the proposed tax changes, including the Canadian Chamber of Commerce, which has argued that the changes would hurt Canadians at different income levels and from many different economic sectors.
Minister Morneau insists the tax changes his government is proposing will end tax advantages unfairly exploited by some wealthy business owners. However, the Finance Minister has also said he's open to adjusting the proposals after the consultation period ends on November 9.
