Waterloo, ON (October 20, 2017) – The leaders of Canada’s fastest growing technology companies welcome the opportunity to engage and be consulted by the Department of Finance on the Government of Canada’s proposed Tax Fairness plan.
In September, the Council of Canadian Innovators (CCI) asked Finance Minister Bill Morneau to consult with Canada’s tech leaders so that government officials can better understand how technology entrepreneurs rely on tax measures to grow their businesses and scale-up globally. CCI’s submission to the Department of Finance was prepared with the feedback from over 90 high-growth tech CEOs as well as Canadian venture capitalists (VCs) and angel investors.
Access to capital is one of the most critical pillars for growth of Canada’s tech sector. CCI members expressed concern that changes to how passive income is treated under Canada’s tax system could reduce the availability of risk capital in Canada that is relied upon for business investment. In addition, CCI members expressed concern that capital will be tighter and investments slower, causing further brain-drain and decreased access to talent.
Canadian CEOs welcomed today’s announcement and the government’s willingness to meet with Canada’s scale-up tech community and design a constructive path forward that ensures tax fairness while respecting the contributions innovators, VCs and angel investors make towards Canada’s economy.
“Today’s announcement shows the Finance Minister and his department have heard the concerns of CCI members and are committed to ensuring this legislation aligns positively with the government’s innovation agenda and in particular the global growth of Canadian tech companies,” said Benjamin Bergen, executive director of the Council of Canadian Innovators.
“Access to capital is a critical part of growing a tech firm and Canada’s high-growth CEOs need a competitive tax environment and an ecosystem that encourages entrepreneurship and scaling up globally. We are pleased the government is willing to engage Canadian innovators and understand their important contribution to our economy.” Bergen added.
CCI has previously advocated for fiscal policy measures that recognize the unique ways businesses in the technology space utilize certain tax measures. In 2016, CCI successfully advocated against the government’s proposed changes to stock options, which would have negatively impacted a scaling company’s ability to attract talent.
--- 30 ---
The Council of Canadian Innovators (CCI) is the 21st century business council exclusively made up of CEOs from Canada’s fastest growing technology companies. CCI is dedicated to helping high-growth Canadian technology firms scale-up globally by advocating for greater access to talent, capital and customers.