CAA's Response to the Minister of Finance on Small Business Tax Fairness




September 29, 2017

The Honourable Bill Morneau

Minister of Finance

House of Commons

Ottawa, Ontario  K1A 0A6

Dear Minister Morneau:

Much like many organizations across Canada, the Consulting Architects of Alberta (CAA) is very concerned about the Government of Canada’s proposed Small Business Tax Fairness  announcement. 

While the federal government appears to be considering a longer time frame for input from business owners across Canada and some possible revisions, the CAA wants to weigh in on the impact of the changes that have been proposed.  

As the business voice of architects in Alberta, the CAA focuses on contributing to a positive business environment benefitting our profession, clients and society. 

One of our main concerns is the treatment of privately held corporations. We represent architectural firms within the province and those firms represent and employ approximately 62% of all registered architects in Alberta.  These firms represent many thousands more non-professionals, technicians and support staff. Our membership is made up of many small business partnerships that employ 1 to 50 staff and all of our members are in some form of a small business arrangement.

The changes proposed are not achieving the goal of taxing the rich. Rather, they appear to be a punitive tax on all small business owners.  Our members cannot re-invest their moneys into their own businesses.  For those of us who own small businesses, the existing system does not contain a huge “loop-hole” that needs to be filled by these new taxes.  Rather, the existing system is a reasonable and understood accounting practice that allows our members to reinvest in their businesses so that more people can be employed.

Albertans have been especially hit hard with challenging times over the past few years, and that includes the architectural profession.  As we noted, a number of our member firms are small or sole-proprietor companies as well as some middle-size to large firms. Regardless of the size, though, the various changes mentioned will definitely cause hardship to our members. 

The proposed changes will detrimentally and punitively affect architects and other small businesses by impeding finance growth and innovation and drastically curtailing 

job creation both in Alberta and across Canada.

The CAA strongly encourages the Government of Canada to re-visit the tax reform plan.