Paying corporate taxes in CanadaDec 21, 2018
Technology is changing the landscape of Canadian business. It has transformed information management, levelled the playing field in marketing and digital strategy, and notably, changed how organizations manage financial processes and reporting and payment of their taxes.
Companies are transitioning from their traditional methodologies of manual bookkeeping and reporting taxes by mail to online. This embrace of technology is being driven by increased convenience and quicker access to taxation information and reporting. Paying online is now the primary method companies use to pay taxes, and particularly payroll taxes and GST/HST. A recent PMG Intelligence survey of Canadian businesses identified that 73% of companies today rely on technology for reporting their taxes and paying their bills. And, when paying taxes online, almost all companies are using online banking through a financial institution to do so.
So, what about the 27% who haven’t made the switch? Those 1-in-4 companies who have not yet come around are – just like in the general population – considered ‘Late Adopters’. While a Late Adopter can buy-in to the value of new technologies, they are naturally less comfortable with technology, less likely to embrace changes to process, and have less confidence in online security. Only time will tell how the continuing enhancements in technology will impact Late Adopters’ adoption rate of these types of finance-oriented technology platforms and processes.