Prime Minister Mark Carney’s inaugural Investment Summit kicked off in Toronto on Monday with the federal government unveiling a tax policy reform poised to streamline capital coming into Canada, while two Canadian banks pledged billions in future investments.
During a conference held by American think tank Milken Institute, just steps away from the main summit event, Finance Minister François-Philippe Champagne teased that more policy announcements are coming in support of the government’s goal to attract $1 trillion in new investment to Canada over the next five years.
“What we need to do now is to move from intention to investment, and (from) investment to projects,” he told a room full of investors.
Monday’s policy shakeup will have the Canada Revenue Agency (CRA) prioritize advance income tax ruling requests related to investments of $1 billion or more in Canada.
The government says that this will help large investors have greater clarity on how Canadian taxes would apply to their investments before they commit any capital.
“It is a big deal,” Walid Hejazi, professor of economic analysis and policy at the Rotman School of Management, told the Star.
“These advance rulings are very, very important. They’re legally binding,” he said, adding that “the number one criticism of doing business in Canada is dealing with an inefficient and bureaucratic Canadian government.”
Hejazi says he suspects that Monday’s announcement is “one part of a broader set of commitments of the federal government.”
Speaking with reporters at the Milken Institute’s event, Champagne said that the world has been looking at Canada “with different eyes.”
“This is a moment to say, how can we modernize our approach when it comes to financing infrastructure around the country?”
Also Monday, Saskatchewan Premier Scott Moe and the prime minister announced that Bell Canada is quadrupling a previously-announced data centre project in that province that is expected to bring in more than $50 billion in capital investment.
TD Bank also announced a five-year, $150-billion commitment to drive financing toward Canada’s critical economic sectors.
Scotiabank committed $100 billion in financing, underwriting and investment for the same thing, joining other Canadian banks that have made large financial pledges in recent days.
“We’re seeing streamlined approval processes, strategic projects moving from concept to execution faster, and policies encouraging progress and investment,” TD CEO Raymond Chun said during a speech at the Milken Institute’s event.
“The evidence is clear. Canada is beginning to move at the speed this moment requires.”
The Milken Institute’s conference is just one of several events in the city timed around the Investment Summit, which is taking place at the Four Seasons Hotel.
Another gathering hosted by the Canadian Venture Capital Association brought together visiting investors with growth-stage Canadian companies. There, the view among some domestic investors was that the main event on Tuesday will be overly focused on energy and infrastructure, and insufficiently on growing domestic technology companies.
Panelists, while boosterish about recent sectoral growth, also highlighted the challenges of investing in Canada.
According to a document obtained by the Star, Tuesday’s summit agenda will feature a combination of panels and investor meetings with Canada’s top CEOs, including Aidan Gomez, co-founder of AI company Cohere, Jon Gray, President of Blackstone, and Dave McKay, CEO of RBC.
Former Prime Minister Stephen Harper is expected to conclude the summit with remarks. Hundreds of participants are expected to attend.
With files from Adam Radwanski and the Canadian Press
