On April 8th, PwC issued its submission in response to the Department of Finance consultation paper, The Taxation of Corporate Groups. The submission, prepared on behalf of thirteen Canadian companies, commends the Department for its initiative to consider moving towards a formal system of group taxation and maintains that a new system would “improve the fairness, efficiency, certainty and competitiveness of Canada’s corporate tax system, complementing recent initiatives by the federal and provincial governments to give Canada a tax advantage in increasing investment, economic activity and employment.”
PwC also emphasizes that a new system would be more “transparent” and “allow for greater monitoring of the impact of profit and loss transfers within a corporate group on provincial income tax bases.” The firm endorses a loss transfer system under which losses and certain other tax attributes could be transferred among corporate group members because it “would result in the least disruption to Canada’s tax system and it is the system to which taxpayers, in particular, small and medium-sized companies, and the federal and provincial revenue agencies can most easily transition.”
|Submission on Group Taxation (2.14 MB)
Download the letter for more details..