CGA Canada is calling for tax simplification

CGA Canada Media Release

Issues in Focus: paper

Accountants really do try to explain how things work.  We find the explanations unbearably complex.  In fact, we often live in horror of having to explain the rules. For example, what's a GRIP account?  Are my corporate dividends eligible or ineligibile? (see previous post on dividend links)

It's comforting to know that someone out there with some clout (at least one hopes they do) has noticed that we suffer under this burden of complexity every day.

I am positive the people who write this stuff never talk to real people.  If they did, they wouldn't use the language they use, they wouldn't keep adding to the complexity and they definitely wouldn't disseminate the rules by scattering the various parts of any given topic all over the place by putting the rules in places where they think people will look, rather than under the topic itself.  The rules on any one topic can't ever be found all in one place on the CRA website.  They try, but for example, vehicles rules that apply to employees, employers and self-employed persons are all different.  You'll never find the crossover to compare to see what the differences are.

How on earth can our self-assessing system survive the complexity?  It's no wonder people give up and don't even report their income.

Have they ever really looked at the complexity of rules for capital cost allowance, capital gains, vehicle expenses, home office expenses, meals and entertainment and heaven help us, medical expenses, with over 150 types?  I've been attempting to explain it ever since about 2005 and at times it overwhelms me.

It really is time to simplify.  Between 1980 and now, when I first started studying tax, the complexity has caused the Income Tax Act to go from an inch thick to about 3 inches thick and to expand outwards in all directions from the small book it once was.  Now it's only possible to hold it with two hands and one must take care to make sure the spine doesn't break.