Canada's tax reform could start with small business changes: official

Canada is set to tackle its long-awaited tax code reform "one bite at a time," with changes for small businesses high on the priority list, according to Wayne Long, MP for Saint John, Kennebecasis and secretary of state for the Canada Revenue Agency and financial institutions.

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When you say the word tax code to people, everybody rolls their eyes. Everybody’s like, ‘Oh, the tax code used to be one book thick, now it’s two books thick. We just keep piling on.'

Tax experts and advocates widely agree that Canada's tax system is in dire need of simplification and improvement. Long echoed this sentiment, noting the common frustration with the tax code's increasing complexity. "When you say the word tax code to people, everybody rolls their eyes. Everybody’s like, ‘Oh, the tax code used to be one book thick, now it’s two books thick. We just keep piling on,'" he told The Canadian Press. "Is a total review of the tax code needed? Absolutely."

Long, who has been involved in pre-budget consultations across Canada alongside Finance Minister François-Philippe Champagne, views the upcoming fall budget as "chapter two" in the Liberal government's strategy to attract investment and foster growth. This initiative follows the significant impact of U.S. tariff campaigns.

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Is a total review of the tax code needed? Absolutely.

He revealed that a "major international player" has expressed interest in investing more in Canada, contingent on changes to the tax code and investment regulations. "Sometimes we hear that other jurisdictions are just more user-friendly than we are. So it’s something that we’re focused on," Long said. "We need to be super aggressive. We need to bring down barriers so that major international players can look at us and say it is more than worth investing in Canada, spending our money in Canada."

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Sometimes we hear that other jurisdictions are just more user-friendly than we are. So it’s something that we’re focused on.

Over the past year, the Liberal government has implemented some tax system changes, including immediate tax writeoffs for new equipment and a one-percentage-point cut to the lowest income tax bracket. A pilot project for automatic tax filing is also planned. While the 2025 election campaign pledged an "expert review" of the corporate tax system, the Finance Minister's office stated it would be "inappropriate" to speculate on future changes, emphasizing the government's focus on innovation, growth, and Canadian entrepreneurship.

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We need to be super aggressive. We need to bring down barriers so that major international players can look at us and say it is more than worth investing in Canada, spending our money in Canada.