National Bank of Canada CEO Laurent Ferreira has called for a complete overhaul of the country’s federal tax system, arguing that the current code is overly complex and burdensome, particularly for small businesses. Speaking at a Canadian Club Toronto event, Ferreira said the tax system should be “scrapped” and rewritten to make Canada the “simplest, most efficient and most competitive tax jurisdiction of all developed countries.” He proposed that the federal government assemble a small team of tax experts to draft a new code within one year, emphasizing the need for speed to attract investment in critical sectors like defence and critical minerals.
Ferreira highlighted the layers of complexity added over decades, including subsidies and special provisions, which have made the tax rules difficult to navigate. He cited research and development incentives as an example, where clients often forgo subsidies due to the convoluted application process. “The intention is to incentivize innovation, but the process to get the incentive is so complex that we sometimes don’t bother,” he said. A complete review and rewrite of the tax code would send a strong signal to investors, he added.
The CEO’s call for reform aligns with broader expert consensus on the need for tax adjustments to support economic growth. Ferreira suggested that tax regulations should also help “recycle” capital gains into businesses, further boosting investment. He stressed the importance of provincial and federal governments working together to create a more capital-friendly environment.