Harmonization to one tax base and one tax rate could bring significant tax savings for Canadian corporations and ease their compliance burden.
Document Highlights
The capital tax is more than a burden on corporations, it can potentially hurt international opportunities to gain new business in Canada and should be considered a job killer. This publication addresses these questions:
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- What is the capital tax?
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- Who taxes capital and why?
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- Why are critics of this tax suggesting that it should be eliminated?
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Unlike other studies that have contemplated the potential distortions resulting from the lack of harmonization in capital taxes, the Board’s empirical analysis applies to both deposit-taking institutions and general corporations.