Group calls for lower tax rate for women-controlled companies

A cross-border council on women in business recommends that companies controlled by women should get lower tax rates.

The Canada-United States Council for Advancement of Women Entrepreneurs and Business Leaders made the suggestion in a report released Wednesday that offered recommendations on how companies can better support women in business.

The group interviewed investors, institutions, asset managers, pension funds and venture capital firms and found that women are not being financially backed at the same level as men and are less likely to have leadership roles within corporations.

That’s why it called for a lower tax rate for women-owned businesses, similar to the lower rates already offered to private corporations that are Canadian-controlled.

It says a lower tax rate could encourage more women to create and lead companies and incentivize businesses to include women in their succession planning and ownership roles.

It called on capital providers to make markets more hospitable for women by expanding or modifying their offerings to target female entrepreneurs.

The council was created by Prime Minister Justin Trudeau and U.S. President Donald

Trump last year and aims to help women-owned businesses contribute to economic growth, competitiveness and the integration of the two economies.

The group also encouraged the Canadian and U.S. governments to continue to pursue programs that ensure women-owned businesses are included in government tender processes, that push companies to adopt clear and strong diversity policies and that increase the number of women in key roles that influence investment decisions.