CPA Canada takes PM to task over remarks on accountants

In the wake of the criticism over the Budget 2024 propose to increase the capital gains inclusion rate, Prime Minister Justin Trudeau accused wealthy Canadians of “using accountants” to reduce their tax payments. In a recent letter to the Prime Minister’s Office (PMO) CPA Canada’s Vice-President of Tax John Oakey set out to clear the air on this hot topic. 

“The Canadian accounting profession is built on the pillars of ethics and integrity,” the letter states. “We at CPA Canada — the national professional body representing some 220,000 CPAs — champion the important role accountants play in shaping our nation’s financial landscape.” 

This includes both CPA Canada’s recent federal advice on capital gains and its long-standing push for a comprehensive review of Canada’s tax system to simplify the increasingly convoluted and difficult to comprehend rules. Our system is confusing even for seasoned tax professionals and as Oakey has written before, repairing tax law on the fly is never a good idea. When tax policy changes are seemingly beta-tested on the entire population, the result is rules upon rules upon rules, sometimes contradictory, sometimes not, but always adding layers of complexity.  

“CPA Canada has long called for a comprehensive review of Canada’s tax system, urging for a robust framework that embodies simplicity, fairness, efficiency and competitiveness,” the letter to the PMO states. “[Our] principles guide our ongoing advocacy work with the federal government, including our pre-budget submission, which recommended that the government adhere to a principled approach to tax policy and administration that is driven by purpose and vision.” 

“The goal of the letter to the PM is to usher in a change in attitude at the highest office in this country,” says Oakey. “When the prime minister uses our profession’s name in the way he did recently it pushed us to lay out the facts of what CPAs do and what we stand for.” 

“Without the expertise of accountants to point out contradictions and to ensure newly minted regulations integrate well with older ones, the efforts by policymakers to strengthen tax policy and to halt avoidance may have precisely the opposite effect,” the letter states. “Complexity makes compliance difficult. CPAs understand the complexities involved in tax legislation and are dedicated to compliance and leadership in fostering a stable and transparent financial environment.” 

“CPA Canada is ready to work with the government to refine our tax system,” says Oakey. “To address challenges and serve the best interests of Canadians. I hope the prime minister sees this going forward.”