Canada can learn from Hong Kong’s tax system, commerce chamber chief says
Newly appointed chairman praises city’s economic framework and calls for more trade synergy between businesses in both regions
The new chairman of the Canadian Chamber of Commerce in Hong Kong has said his country can learn from the city’s economic system and adopt it, increasing competitiveness, economic growth and tax revenue for Canada’s government.
Todd Handcock was elected the chamber’s new chairman in late October for a two-year term. The 15-year Hong Kong resident said Canada could take a page from Hong Kong’s book on tax and regulatory frameworks to fill government coffers and give companies more money to invest.
“The Hong Kong government has been very pro-business from a tax perspective,” Handcock said.
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“Low taxes mean Canadian and Hong Kong companies that are operating here can further invest dollars that they don’t pay into tax, which creates employment and, overall, has created robust growth over the years.
“The Canadian companies here would love to see a simple or lower tax structure in Canada. At the end of the day, the Hong Kong government has enjoyed higher tax dollars coming in [because of the lower tax rates].”
The Canadian companies here would love to see a simple or lower tax structure in Canada
Handcock said he believed that the same scenario would happen in Canada with tax receipts increasing as the tax rate went down.
While the federal Canadian corporate tax rate is 15 per cent, a provincial tax rate is also applied, which can reach up to 16 per cent. Hong Kong’s corporate tax rate is 16.5 per cent.
