As a small business owner, you face government red tape everywhere you turn. From filling out long forms to paying taxes, excessive rules and regulations not only waste precious time, but cost you a lot of money. Our research has found that red tape actually costs small businesses like yours more per employee than large firms.
You’ve told us that cutting government red tape is a priority for you, so we’ve fought hard at every level to reduce your paper burden.
Here are some of the ways we’re working to reduce red tape:
Reducing red tape isn’t always a top priority for governments, which is why we created Red Tape Awareness Week and publish an annual Red Tape Report Card: to focus their attention on what matters to you.
Through our relentless advocacy work, we’ve been able to score some important national wins:
- The One-for-One Rule: For every new federal regulation created, the government must eliminate an equal regulatory burden. This law also requires government departments to publish any cost savings or increases to businesses for every regulatory change.
- The Small Business Lens: Every time the federal government wants to implement a new regulation, they have to do an analysis on whether it is necessary and how complex it is for small businesses.
But there’s still work to do! Currently the One-for-One rule and the Small Business Lens only apply to regulations. So we’re pushing to have the federal government include policies and legislation (like the Income Tax Act), which can add considerable red tape to your business.
We’re also taking the fight to the municipal level, encouraging cities and towns to implement their own 1-for-1 rules. Check out who’s taking up the challenge.
A seat at the table: CFIB chairing new federal committee
Thanks to our tireless work fighting for your business, CFIB has been recognized with a crucial role in reducing federal red tape! Our executive vice-president, Laura Jones, will chair the External Advisory Committee on Regulatory Competitiveness, which will provide recommendations on streamlining regulations to allow Canada’s businesses to compete and succeed.
Canada Revenue Agency
Navigating all your complex tax obligations is one of the biggest burdens for your business, which is why CRA is a major focus for us. When it comes to taxes, red tape isn’t just all the forms you fill out or the rules you have to follow—it can also include bad customer service and not being able to access accurate information.
CFIB has fought hard for service improvements at CRA, including:
- Working with CRA to create the online tool, My Business Account, which includes being able to electronically ask questions and get answers from CRA that will be honoured even if CRA’s answer is later found to be incorrect in an audit.
- A more robust Liaison Officer Service available to incorporated businesses that offers in-person visits from CRA experts to help small businesses understand their tax obligations.
- The ability for your business to distribute T4 slips electronically to employees, saving you time and money.
- Ensuring that CRA letters and the website are in plain language so that you can easily understand the information and your obligations.
- Evaluating the CRA call centres, which has brought significant improvements to services for small businesses.
Check out our post on other ways we’re fighting for fairness at CRA.
Barriers to trade
Doing business in another country, or even in another province, can be complicated. Redundant or contradictory regulations make trade costly and time consuming – discouraging many business owners from even bothering to work across borders.
CFIB is fighting to reduce red tape barriers to trade both at home and abroad:
- The Canadian Free Trade Agreement (CFTA) signed in July 2017 aims to make it easier for you to do business anywhere in Canada. However, there remains a lot of work to do and we are pushing the provinces and territories to take concrete action to align their regulations and eliminate barriers.
- The Canada-European Union Comprehensive Economic Trade Agreement (CETA) helps to open new markets in Europe for your business! The new agreement specifically seeks to streamline regulations between Canada and the European Union, saving you time and money. Here are six ways that CETA will make it easier to do business in Europe.
- While the North American Free Trade Agreement (NAFTA) is still in effect, if the new Canada-United States-Mexico Agreement (CUSMA) is ratified, it will have some mixed news for your business. On the positive side, the agreement contains a chapter focused on small business. However, it also raises the minimum purchase required before taxes and duties kick in and opens up the Canadian dairy market to foreign competition. Find out what the new agreement could mean for your business.
Do you have an international trade barrier holding back your business from exporting? Let the government know about your red tape irritants by registering your barrier and getting help from the Trade Commissioner Service here.
Got a red tape headache? Do you have an example of a dumb or ridiculous rule that you think should be fixed? Call us today - we want to hear your examples, big or small, about a confusing process, unclear rules or poor customer service.