Tech sector, investors lead last-minute assault on tax plan

OTTAWA With its public outreach winding down, the Trudeau government received fresh warnings Monday from major industry associations about the negative fallout from its controversial tax-reform proposals.

The latest criticisms of the government’s plan to change tax rules for private corporations arrived as its 75-day consultation period on the proposals approached its deadline late Monday.

One message came from a group representing some of the country’s fastest growing technology companies and industry investors. They argued the proposals would restrict the ability of tech entrepreneurs to access capital that’s vital to growing their companies and creating jobs.

“It is vital that before any decisions on this file are made, the federal government meets with Canadian innovators to discuss solutions that do not hurt Canada’s job and prosperity creators in the tech sector,” said the letter, signed by CEOs representing entrepreneurs, venture capitalists and angel investors.

“This is a race to the bottom, and runs contrary to the government’s innovation and skills plan.”

The association said the changes, if implemented, would create uncertainty for corporate tax planning, intensify a brain drain of tech talent away from Canada and negatively affect the government’s highly publicized investments to help high-potential firms scale up.