SMEs are little aware of the tax credits intended for them, according to a survey

2024-01-21 17:36:20

Quebec offers several tax credits to help SMEs. However, this tax assistance is unknown to the vast majority of entrepreneurs, according to a survey by the Canadian Federation of Independent Business (CFIB).

The survey shows that less than a third (30%) of SME owners have “general knowledge” of the tax credits intended for them.

The government should lead “a major communications offensive” to make its tax credits known to SME owners, argues the vice-president of the CFIB for Quebec, François Vincent.

“It is not by just holding a press conference to announce a new program that, by magic, all business leaders will be aware of it,” he insists in an interview.

“We would really like state agencies and ministries to push and canvass business leaders who could have access to these programs,” he continues.

The complexity of the procedures necessary to obtain tax credits, the lack of time and the lack of information are the main obstacles mentioned by entrepreneurs in the survey.

Don’t SME owners also have some responsibility for their lack of awareness of the tax assistance for which they are eligible? “If they had time,” Mr. Vincent retorts.

“It’s not for lack of will,” he continues. The manager of a small business has no more time because he is putting out fires on the floor, because there is a lack of employees. Then, the burden of paperwork is heavier and the costs are higher to deal with specialists or accountants. »

SME owners do not have access to the same resources as large businesses where we are able to hire experts to monitor government programs, adds Mr. Vincent.

Asked to provide comments in the survey, respondents deplored the cumbersome administrative process necessary to obtain tax credits. “I often find that we work a lot of hours to get little money in tax credits,” laments a respondent cited in the report.

“Always very difficult for a small SME to have access to it due to the lack of internal resources and time to devote to it, especially in times of labor shortage,” writes another respondent.

Lack of awareness of tax credits means that the assistance the government wants to provide does not reach all the businesses that could benefit from it, underlines Mr. Vincent.

The survey shows that the tax credit for maintaining employment for people with severe employment constraints is only known to 17% of SME owners. 4% have used it.

The tax credit promoting the employment of experienced workers is also little known. Only 25% of respondents are aware of it, including 15% of owners who have used it.

“If credits aimed at a particular clientele are not known, we are certainly not helping these people,” deplores Mr. Vincent.

The survey was conducted in December among 288 CFIB members. Its margin of error is 5.8%, 19 times out of 20.