Tax & Investment Regime

Providing a Competitive Tax & Investment Regime


Taxes play a crucial role in shaping business decisions and investment strategies. High tax rates and complex regulations can deter investment, drive businesses to relocate, and stifle innovation. On the other hand, a competitive tax environment can attract both domestic and foreign investors, fostering economic growth and job creation.

The Capital Gains Inclusion Rate

The recent increase in the capital gains inclusion rate has been particularly detrimental. Higher capital gains taxes reduce the after-tax returns on investments, discouraging investors from funding startups and innovative projects. This policy needs to be reversed to foster a more vibrant entrepreneurial ecosystem in Canada.

Why This is a Priority for CVCA and All Canadians

Advocating for a competitive tax and investment regime is crucial for several reasons:

  • Lower taxes and simplified regulations can attract businesses and investments, leading to job creation and economic growth.
  • A favourable tax environment encourages investments in R&D, leading to technological advancements and improved products and services that benefit everyday Canadians.
  • Better investment opportunities can lead to higher returns, helping Canadians achieve their retirement goals.
  • A competitive tax regime makes Canada an attractive destination for global investors, enhancing economic resilience and ensuring sustained growth.

The CVCA believes that reforms are essential not only for the growth of the venture capital and private equity sectors but also for the overall prosperity of the Canadian economy. A competitive tax and investment regime will ensure that Canada remains a leader in innovation and economic development.

Related

Policy Briefs, Public Statements & Submissions

Who Really Pays Capital Gains Taxes?

May 30, 2024

Kim Furlong: Capital gains tax hike signals Canada's lack of business ambition

April 19, 2024

CVCA's Statement on 2024 Canadian Federal Budget

April 16, 2024

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