This Month’s Poll

Does Canada need to reform its personal and corporate tax policies - Yes, and not just to make our economy stronger in response to trade wars.  As has been stated numerous times, the Canadian tax system is overly complex and burdensome. And while, as a tax professional, I enjoy the job security such a complex tax system provides, when even we are looking at new policies and going “WTF does that even mean?!?”, you know we’re in trouble. The main issues, as I see them are:

1. Reforming the income tax act is not a simple endeavour. It will take several years to hash out the details, and will require cooperation between the Department of Finance, the CRA, tax practitioners and lawyers, international tax professionals (to ensure we are not only competitive internationally but also to see what has worked / not worked with out countries and take that into account), etc. We also need to ensure that all political parties have their input and that this is not a “one party” project, to help ensure the policies are “well rounded”.

2.  Reforming the income tax act will also require us to review, and likely reform, Canada’s other tax systems (excise taxes, GST, import/export, fuel, luxury, etc.) adding even more complexity and time to this vast undertaking.

3. Reforming the CRA - while the Department of Finance writes the legislation (increasingly poorly, I might add), it is the CRA that really is the face of our tax system as they are the “enforcers”. Like our tax system, the CRA also needs an overhaul, which should include:
  -  Changing the corporate culture to one that promotes accuracy, efficiency, education / training, timeliness, accountability, etc.
  -  Accountability to taxpayers for CRA’s delays and errors (there needs to be real consequences to the CRA for their careless mistakes and avoidable delays, otherwise nothing will ever change).
  - Treating CRA employees like private sector employees (if you don’t do the work in a timely, efficient or accurate manner, then you don’t have a job)
  - Updating the computers and computer programs to the 21st century.
 
Do I think any of the above will happen, no.  But one can always hope. In the meantime, governments will continue to “patch” their perceived issues with the income tax act and in the process, just make things worse.

By Alex on September 23, 2026

Yes.  This has been an area of concern, since I became an accountant, more than 40 years .  There is no political incentive to reform the income tax act - it does not buy the politicians many votes.  Even if we voted for a political leader that promised tax reform in their election platform, there is little or no expectation that any tax reform will actually occur.

No Canadian politician has ever comprehensively reformed the Income Tax Act to make it simpler. While there have been significant tax policy changes, the Act has actually grown increasingly complex over decades, and no government has undertaken a wholesale simplification effort.

The closest precedent is Finance Minister Michael Wilson’s tax reform in the mid-1980s. Facing an unwieldy system and competition from Reagan’s tax cuts, Wilson pursued a comprehensive overhaul rather than piecemeal changes:

1. Broadening the tax base by eliminating dozens of complex carveouts and credits
2. Lowering income tax rates in exchange for the elimination of preferences
3. Introducing the GST to shift reliance away from income taxes

However, even Wilson’s reform eventually led to new tax complexity, and many of the carveouts he eliminated have since been reintroduced in different forms.

Do we need reform?  Absolutely.  But, electing a political leader that will actually do it is currently just a fantasy .

By Gaetan Ladouceur on September 17, 2026

The CPA Tax Practitioners Committee has been calling for a total review of the Act and varous concerns outlined to CRA & M of Finance

By JOSEPH A TRUSCOTT CPA on September 09, 2026

A overhall would be nice, but more importantly, overhauling CRA to ensure that they deliver audit responses faster with less errors would help every Canadian Tax Payer.

By Gerry Campbell on September 09, 2026

I am in agreement with Robert.  An overhaul of the system that would simplify taxation would improve efficiency for taxpayers, both personal and corporate, and with a simpler system, perhaps CRA could downsize somewhat, making government less costly, thereby requiring less taxation.

There should really be a focus on making Canada’s economy stronger, regardless of the situation of the day.

By Derek T on September 02, 2026

Canada’s tax regime is very complicated and, I have recently heard, one of the most expensive in the world.  It is costly for the government as well as the individual / corporation to complete.  A tax reform to make the task of completing and paying income taxes more efficient and cost effective should be a goal of any government. 
Taxpayers have been complaining for years about the complexity of the system.  Let’s get it reformed and better suited to use.
I don’t know if it will help the trade wars (nothing seems to work at the moment) but it will not hurt to try.

By Robert Litschel on September 02, 2026