Close X
Monday, November 25, 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

    Amazon To Open Shipping Warehouse On B.C. First Nation Land

    Amazon To Open Shipping Warehouse On B.C. First Nation Land
    VANCOUVER — Amazon has announced plans to open a new Metro Vancouver shipping warehouse on Tsawwassen First Nation land in Delta, B.C.

    Amazon To Open Shipping Warehouse On B.C. First Nation Land

    More Than Half Of Fatal Overdoses Involved People Who Were Mentally Ill: Coroner

    More Than Half Of Fatal Overdoses Involved People Who Were Mentally Ill: Coroner
    VANCOUVER — The BC Coroners Service says completed investigations of 872 overdose fatalities show more than half of those who died had been diagnosed with a mental health disorder or had evidence of being mentally ill.

    More Than Half Of Fatal Overdoses Involved People Who Were Mentally Ill: Coroner

    Vancouver's Port Readies For Busy Weekend As Largest-Ever Ship Set To Arrive

    Vancouver's Port Readies For Busy Weekend As Largest-Ever Ship Set To Arrive
    The Norwegian Bliss is about the length of three football fields at 333 metres and is capable of carrying nearly 6,000 guests.

    Vancouver's Port Readies For Busy Weekend As Largest-Ever Ship Set To Arrive

    Police Watchdog Probing Medical Distress Incident At Kelowna RCMP Detachment

    Police Watchdog Probing Medical Distress Incident At Kelowna RCMP Detachment
    KELOWNA, B.C. — British Columbia's police watchdog is investigating after two people went into medical distress at a Kelowna RCMP detachment soon after being arrested.

    Police Watchdog Probing Medical Distress Incident At Kelowna RCMP Detachment

    BC Hydro Says Smartphone, Tablet, 'Obsession' Behind Shift In Electricity Use

    BC Hydro Says Smartphone, Tablet, 'Obsession' Behind Shift In Electricity Use
    VANCOUVER — A report from BC Hydro says British Columbians are addicted to personal electronics, prompting a dramatic shift in electricity consumption across the province.

    BC Hydro Says Smartphone, Tablet, 'Obsession' Behind Shift In Electricity Use

    Delta Police Hosting First Annual 'Girls Who Lead' Conference In North Delta

    Delta Police Hosting First Annual 'Girls Who Lead' Conference In North Delta
    The Delta Police Department is planning the first annual “Girls Who Lead” conference to be held on Friday October 19th at Seaquam Secondary. The day-long conference is geared towards women in leadership, but is open to any high school aged students in Delta.

    Delta Police Hosting First Annual 'Girls Who Lead' Conference In North Delta