OTTAWA, ON, Oct. 28, 2019 (GLOBE NEWSWIRE) -- Today, the Electronic Transactions Association (ETA) – the leading industry association representing Canada’s electronic payments industry -- called on the Government of Canada to adopt a new, targeted tax measure to help small companies improve cyber resiliency.
In response to evolving cyber threats, ETA is proposing the introduction of a tax credit to assist Canadian small businesses in improving their cyber resilience through cyber security insurance. The proposed 15%non-refundable tax credit would be available for Canadian-based small businesses with fewer than 99 employees who meet the requirements of the CyberSecure Canada program, a voluntary cybersecurity certification program administered by Innovation, Science, and Economic Development Canada.
Small businesses face tough challenges for survival, and cyber attacks have a direct correlation with the viability of a small enterprise. According to the latest data, over 70%of data breaches in Canada involve small to mid-sized enterprises. These attacks threaten the business’ survival, involve significant costs to recover and lead many to falter.
By incentivizing cyber insurance, the measure would spur small business to make improvements to their cyber resilience. Cyber insurance gives small businesses enhanced protection against cyber threats. by strengthening their defenses and their resources in the event of an attack.
The proposed tax credit mirrors investments made by other jurisdictions to bolster the cyber resilience of small enterprises; as an example, Australia’s Cyber Security Small Business Program provides grants of up to $2100 for a certified small business cyber security check from an approved provider.
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Cyber attacks often drive small businesses out of business. By offering an incentive to secure cyber insurance, the government gives small businesses an important tool to help ensure their survival in the event of an attack. The creation of a tax incentive for small firms reinforces their economic importance and the need to enhance the cyber resilience of Canadian small businesses. Scott Talbott, Senior Vice President of Government Affairs, Electronic Transactions Association
About Electronic Transactions Association (ETA)
The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $7 trillion in purchases in the North America. and deploying payments innovation to merchants and consumers.