FOR IMMEDIATE RELEASE
Digital Nova Scotia – Response to the Nova Scotia Tax and Regulatory Review Report
HALIFAX, Nov. 21, 2014 – Laurel Broten’s Report Charting a Path for Growth is a significant step away from the status quo and a bold vision for tax and regulatory reform in Nova Scotia. In June of 2014, Digital Nova Scotia hosted a session for our members with Laurel Broten to provide a platform for digital industry feedback regarding the Nova Scotia Tax and Regulatory Review. The report highlights many of the concerns addressed through our industry consultation session.
As the industry association for the fastest growing sector in the Province, Digital Nova Scotia aims to create a better ecosystem of support for digital businesses in our region to thrive and grow our digital economy.We believe there are positive recommendations included in the report, which will have an impact, in particular, on our sector. These recommendations are highlighted below:
- The recommendation to have Film and Creative Industries Nova Scotia solely responsible for the administration of credits is favourable. However, the organization as is, requires additional resources to ensure the process is efficient and effective
- We are also in favour of continued industry-led consultations regarding any necessary modifications and improvements to the film and digital media tax credits
- We are in favour of the SR&ED tax credit administration review to ensure that processes are standardized across the country
- We agree that consideration should be given to targeting the Equity Tax Credit (ETC) to strategically defined high-growth sectors, such as information and communications technology and clean technology.
As the majority of digital businesses in our region fall under the small business category, we are concerned with the suggested recommendation to increase the small business tax rate. While this may be off-set by other beneficial tax credits, a phased-approach would be necessary to fully comprehend the impact on our small businesses and their ability to stay in our region and grow.
“The Report clearly outlines the critical situation our Province faces and offers evidence-based solutions. While many of the recommendations are positive, we do want to ensure an open-line of communication continues between industry and government regarding potential reform. We look forward to learning how the Provincial Government plans to leverage these recommendations, and how we can best support our industry in relation to their implementation,” says Ulrike Bahr-Gedalia, President and CEO, Digital Nova Scotia.
Director, Marketing and Research