Canada Leads Tax Competitiveness


    As a result of business tax reform since 2005, Canada has become the most tax-competitive jurisdiction in the G-7, the 20th most competitive in the Organisation for Economic Co-operation and Development (OECD), and it ranks 57th among the countries surveyed in the ‘Annual Global Tax Competitiveness Ranking, ‘says The School of Public Policy. The report includes a cross-reference of corporate tax rates versus government revenues from these taxes. The report says that despite reductions to the corporate tax rate since 2000, revenues have grown with the economy and attribute this to profit-shifting or more investment into the Canadian economy by companies looking to capitalize on favourable tax rates. While Canada is reaping the rewards of its 19.9 per cent ‘Marginal Effective Tax Rate’ (METR), the U.S. is perilously lagging behind. Its METR sits at 35.6 per cent – last among the 34 OECD countries.