Close X
Thursday, October 31, 2024
ADVT 
National

Auditor General Says B.C. Needs To Know More About Tax Breaks It Gives

The Canadian Press, 10 Oct, 2018 11:13 AM
    VICTORIA — British Columbia's auditor general says politicians need to pay more attention to the billions of dollars they provide every year in tax breaks to support government programs and policies.
     
     
    Carol Bellringer said Tuesday in a report that the breaks in the form of tax expenditures can continue on for decades without oversight on either their effectiveness or if they're still required.
     
     
    She said the government's reporting of tax expenditures and how they relate to spending has been largely unchanged for the past 25 years.
     
     
    B.C. government tax breaks were estimated at $7 billion in the 2016-2017 budget year, the report says. The government's direct spending total in the budget for programs such as health care and education was $48.7 billion.
     
     
    "Tax expenditures are a significant component of government fiscal plans but legislators may not have all the information they need to determine whether tax expenditures continue to achieve government's policy objectives," Bellringer said in a telephone news conference.
     
     
    She said the tax breaks give support to government social, economic and environmental policy objectives but providing those benefits comes at a cost of lost revenues.
     
     
    "Essentially, a tax expenditure is forgone revenue," Bellringer said. "It's money government doesn't collect from taxpayers, but could if it didn't offer the tax breaks. Tax exemptions, allowances, rate reductions, deferrals and credits are all types of tax expenditures."
     
     
    She said the government decided not to charge provincial sales tax on the purchase of new bicycles to help meet its environmental goals, but that means it gives up about $23 million in taxes every year.
     
     
    Bellringer said B.C.'s homeowner grant — introduced in 1957 to relieve the pressure of rising property taxes and encourage home construction — is a decades-old tax expenditure that has undergone few changes or reviews since its introduction.
     
     
    "It may no longer be effective in supporting government's policy objectives," she said.
     
     
    Bellringer pointed to the federal government as an example of a progressive approach to addressing the issue by clearly posting its most recent eight years of tax expenditures.
     
     
    B.C.'s tax expenditures are included in an appendix section of its most recent budget, she noted.
     
     
    "They're accepting it year after year and it rolls forward and continues to be in the program," Bellringer said. "It's important for (politicians) to appreciate when they are voting on the budget for the year that the numbers for program expenses do not include tax expenditures."
     
     
    B.C.'s Ministry of Finance said in a statement Tuesday it is important that politicians and others have access to complete information relating to B.C.’s tax expenditures and it will consider improvements to the reporting of such expenditures.

    MORE National ARTICLES

    Survey Finds Growing Disconnect Between Canadians And Nature

    TORONTO — A survey for the Nature Conservancy of Canada indicates Canadians feel happier when they are connected to nature, but fewer are making the effort to get out of the house.

    Survey Finds Growing Disconnect Between Canadians And Nature

    We're Not 'Banana Republic,' Says Saudi Arabia, Demands Canada Apologise

    We're Not 'Banana Republic,' Says Saudi Arabia, Demands Canada Apologise
    OTTAWA — The Saudi Arabian Foreign Minister threw cold water on hopes the diplomatic row between his country and Canada will come to an end on the sidelines of the United Nations General Assembly this week.

    We're Not 'Banana Republic,' Says Saudi Arabia, Demands Canada Apologise

    Halifax Billionaire Businessman John Risley Represents Himself In Small Claims Court, Loses $2,572

    Halifax Billionaire Businessman John Risley Represents Himself In Small Claims Court, Loses $2,572
    Halifax billionaire John Risley, one of Canada's richest people and a leading philanthropist, represented himself in small claims court over a $3,000 claim from a tradesman — and mostly lost.  

    Halifax Billionaire Businessman John Risley Represents Himself In Small Claims Court, Loses $2,572

    B.C. Limits Rent Increases But Tenants' Group Wants More Protections

    VANCOUVER — The British Columbia government has chopped the annual rent increase that landlords are allowed to charge by two per cent but an advocacy group is calling for more changes to protect tenants in heated markets.

    B.C. Limits Rent Increases But Tenants' Group Wants More Protections

    Port Moody Mayoral Candidate Rob Vagramov On Why He Asked A Homeless Man To Chug Beer For Sandwich

    Port Moody Mayoral Candidate Rob Vagramov On Why He Asked A Homeless Man To Chug Beer For Sandwich
    PORT MOODY, B.C. — A mayoral candidate and sitting councillor in Metro Vancouver has taken to social media to explain a profanity-laden 2014 video in which he asks a homeless man to chug a beer with him in exchange for a sandwich.

    Port Moody Mayoral Candidate Rob Vagramov On Why He Asked A Homeless Man To Chug Beer For Sandwich

    Review Finds Former Victoria Police Chief Frank Elsner Committed 8 Acts Of Misconduct

    VICTORIA — A former Victoria police chief "caught in a web of untruths" was handed unprecedented disciplinary action Wednesday after a review found Frank Elsner committed eight acts of misconduct under British Columbia's Police Act.

    Review Finds Former Victoria Police Chief Frank Elsner Committed 8 Acts Of Misconduct