Canada vows to eat the tax code ‘one bite at a time’
Kelly criticized the previous government’s scattershot use of specialized programs and tax breaks, and said the complexity of the corporate system raises compliance costs and leaves some owners fearing audits and penalties.
More businesses have closed than opened in Canada for six consecutive quarters, the CFIB reported, with the exit rate peaking at 5.6 percent in the second quarter of 2025 and the new-business entry rate falling to 4.8 percent by the fourth quarter, among the weakest readings outside the pandemic.
More than half of small business owners, 55 percent, would not recommend starting a business in the current environment, the group found.
The tax experts who spoke with The Canadian Press agreed that removing complexity would also mean ending boutique credits aimed at specific industries or voting blocs, a politically fraught step.
Ryan Minor, director of tax at CPA Canada, offered the example of scrapping the small business deduction, which spares firms tax on their first $500,000 in earnings.
