Tax Simplification 101/Simplification fiscale 101

While many experts contend that simplification of Canada's personal and corporate tax systems are long overdue, and are emphatic that a solid business case can be made for reducing complexity, they also view political realities as a formidable obstacle against substantive reform. Tax simplification is a very complex issue. It's tough for any government to do because you can't just say that you're going to stop the system as it exists today, and introduce a new system tomorrow, says Len Farber, a senior advisor with the law firm Norton Rose LLP in Ottawa. Moreover, it is important to look at how the tax system affects an aging population -- including factors such as whether deductions for retirement home living are adequate, and whether deducting medical expenses in excess of 3% of income represents the proper taxation mechanism. Tax simplification is also important for businesses.