Harmonization of Ontario's corporate income tax collection system: December 14, 2004.

On December 14, 2004, the Institute filed comments with the Hon. Dalton McGuinty, Premier of Ontario, lauding the Ontario government's proposal to harmonize the Ontario income tax collection system with the federal tax system. TEI's comments, which took the form of a letter from TEI's Toronto Chapter President, Mary T DiBattista of Stelco, Inc., was prepared under the aegis of the Chapter's Ontario Tax Committee, whose chair is Robert G. Westlake of General Electric Canada.

As President of the Toronto Chapter of Tax Executives Institute, I want to express TEI's appreciation for the Ontario government's proposal to work with the federal government toward establishing a single corporate income tax collection system.

Tax Executives Institute is the preeminent association of business tax professionals. TEI's 5,400 members work for 2,800 of the largest companies in Canada, the United States, and Europe. TEI's membership includes representatives from a broad cross-section of the business community, with members employed in all major industries and sectors of the economy. Canadians make up approximately 10 percent of TEI's membership, with our Canadian members belonging to chapters in Toronto, Montreal, Calgary, and Vancouver. In addition, many U.S. and European members work for companies with substantial Canadian and Ontario operations. TEI's Toronto Chapter has more than 300 members and is one of TEI's largest chapters.

Adoption of a single corporate income tax collection system would be a positive first step in the elimination of redundant processes in respect of Canadian taxes. It would increase efficiency for the provincial and federal governments as well as corporate taxpayers by eliminating red tape. Moreover, easing corporate income tax compliance burdens would improve the Ontario business climate. Ultimately, full harmonization of the income tax systems would produce significant cost savings for both levels of government and for Ontario businesses.

We recognize that this proposal is in its formative stage. In your November 3, 2004, speech, you pledged to "streamline the process with the federal...