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2022 pre-budget consultations: Raymond Chabot Grant Thornton once again proposes ambitious measures to increase liquidity and revive the economy
Montreal, February 16, 2022 – As part of the federal and Quebec governments’ pre-budget consultations, Raymond Chabot Grant Thornton is once again calling for bold measures, particularly in the area of taxation, in order to create additional liquidity for taxpayers and government coffers.
The firm today unveiled its 2022 pre-budget submissions, which are centred on restoring public finances and paving the way for a strong and lasting recovery for small and medium-sized enterprises. The submissions are addressed to the Quebec and Canadian finance ministers for review prior to the preparation of their next budgets.
Governments have a duty to maintain measures aimed at easing the hardship experienced by so many taxpayers and economic sectors as a result of the pandemic. Without these measures, the impacts would have been devastating—and they could still be.
“However, it’s possible for governments to support those who haven’t recovered financially from the pandemic while also increasing government revenues, without raising taxes, in order to create more liquidity for taxpayers,” said tax partner Jean-François Poulin.
Raymond Chabot Grant Thornton has issued a first series of recommendations under the theme of Public Finance and Liquidity to encourage both levels of government to introduce temporary tax incentives and new forms of certain discontinued high-value programs, such as those for immigrant investors.
In addition, the firm is recommending measures to address challenges in two other key areas: Competitiveness and Entrepreneurship, and Workforce and Immigration.
“With so many small and medium-sized businesses still struggling, it’s clear that we need to introduce tax breaks and other measures to promote growth, such as making family business transfers easier and protecting the mental health of entrepreneurs,” added Éric Dufour, Regional Vice-President and National Business Transfer Leader.
Where workforce measures are concerned, Raymond Chabot Grant Thornton is asking the Quebec government to make changes to the Labour Market Impact Assessment process for recruiting candidates under the Temporary Foreign Worker Program (TFWP).
“Unfortunately, Quebec SMEs that want to recruit foreign workers through the TFWP face more challenges than their counterparts in other Canadian provinces. Since so many Quebec businesses are facing an urgent labour shortage, it’s crucial that we reduce the amount of time it takes to bring in foreign talent,” said Marc Audet, President of AURAY Sourcing, a firm that specializes in international recruitment and mobility, and a member of Raymond Chabot Grant Thornton.
Governments should also introduce meaningful tax incentives to encourage older workers to stay in the workforce or return to it.
“Federally, there’s no tax incentive for career extension like the one we have in Quebec. And the current Quebec tax credit isn’t attractive enough to truly incentivize experienced workers. We also need a tax shield for individuals who receive Old Age Security or the Guaranteed Income Supplement and choose to work past the age of 60,” concluded tax partner Sylvain Gilbert.
To read the detailed briefs submitted in French to the federal and Quebec governments, or a summary of the recommendations in English, go to: 2022/2023 Provincial Pre-Budget Submission and 2022 Federal Pre-Budget Submission.
About Raymond Chabot Grant Thornton
Raymond Chabot Grant Thornton is a professional services firm that has been dedicated to the success of organizations and their leaders since 1948. The firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals, helps accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton relies on a team of more than 2,600 professionals, including approximately 200 partners, working in over 100 offices across the province and in the Ottawa and Edmundston regions.
Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton global organization, our global footprint spans across more than 140 countries with over 62,000 people who provide real insight, a fresh perspective and agility to keep clients moving ahead.
Source:
Francis Letendre
Head – Public Affairs
Raymond Chabot Grant Thornton
514-390-4201
[email protected]