Information on Capital one canada

On June 19, 2003, TEI President Drew Glennie submitted a letter to Canadian Minister of Finance John Manley commending the government for announcing a phased elimination of the Large Corporation Tax (LCT). The comments were submitted under the aegis of TEI's Canadian Income Tax Committee, whose chair is Monika M. Siegmund of Shell Canada Limited. Contributing substantially to the development of TEI's comments was Vince Alicandri of Hydro One Networks, Inc.

On February 18, 2003, the government released its 2003 budget proposals and announced, by way of a Notice of Ways and Means Motion, its intention to eliminate--by January 1, 2008--the Large Corporations Tax (LCT) imposed by Part I.3 of the Income Tax Act. On behalf of Tax Executives Institute (TEI), I am writing to commend the government for its decision to repeal the tax.

Tax Executives Institute is the preeminent association of business tax executives. The Institute's 5,300 professionals manage the tax affairs of 2,800 of the leading companies in Canada, the United States, and Europe and must contend daily with Canada's business tax laws. The comments set forth in this letter reflect the views of the Institute as a whole, but more particularly those of our Canadian constituency who constitute 10 percent of TEI's membership. TEI is concerned with issues of tax policy and administration and is dedicated to working with government agencies in Ottawa, as well as in the provinces, to reduce the costs and burdens of tax compliance and administration to our common benefit. We are convinced that the administration of the tax laws in accordance with the highest standards of professional competence and integrity, as well as an atmosphere of mutual trust and confidence between business and government, will promote the efficient and equitable operation of the tax system.

TEI has consistently advocated the elimination of all capital taxes, including the LCT, at the federal and provincial levels. Indeed, the repeal of LCT was one of the principal recommendations that TEI and others made during the Pre-Budget Discussions held last fall by the House of Commons Standing Committee on Finance. We are pleased that the government has adopted this recommendation and urge that the repeal be implemented as quickly as possible. TEI agrees with the policy view expressed in Chapter 5 and Annex 9 of the budget paper: Capital taxes are a significant impediment to investment in Canada. Accordingly, we encourage the government to accelerate the elimination of this tax to ameliorate its negative effect on the economy. Specifically, we recommend that the government consider reducing the LCT tax rate for all corporations for 2004 to 0.1 percent and that the tax be completely eliminated effective in 2005.

Again, we commend the government for the taking the first step in eliminating a tax on investment that hinders the creation of new jobs in Canada. Should federal budgetary constraints permit, we urge you to consider accelerating the timetable for, and date of, its final elimination.

TEI's comments were prepared under the aegis of the Institute's Canadian Income Tax Committee, whose chair is Monika M. Siegmund. If you should have any questions about the submission, please do not hesitate to call Ms. Siegmund at 403.691.3210, or Glenn G. Wickerson, TEI's Vice President for Canadian Affairs, at 403.233.1135.