TORONTO — Sitting steady in the Top 10 ranking for the last three studies, Canada remains in 8th place when it comes to its ease of paying taxes for businesses, according to Paying Taxes 2014 — a joint study from PwC and the World Bank Group that reviews tax regimes in 189 economies around the world.
Paying Taxes 2014 measures the overall ease of paying taxes for a hypothetical small to medium-sized domestic business by assessing three indicators: number of tax payments per year; time taken to compile returns and submit tax payments; and by calculating companies’ total tax liability as a percentage of pre-tax profits.
Three factors affecting Canada’s high ranking include:
“Within North America, Canada maintains the lowest average total tax rate ranking largely due to its efforts to establish a tax-competitive and business-friendly environment,” says Brad Sakich, Canadian Tax Policy Leader, PwC. “Privately owned small businesses in Canada should take comfort — the ranking demonstrates that Canadian government agencies support and encourage the creation of more such businesses.”
The report indicates that continuing simplification of tax red-tape in Canada remains important, but with the current economic climate, the main priority for businesses today should be tax rate stability. Sakich says, “The federal government’s announcement in September regarding ‘cap’ employer employment insurance rates until 2016 is the type of tax stability that should be welcomed by Canadian businesses with a number of employees.”
Canada’s 8th place ranking makes it one of the easiest countries to pay taxes amongst the G8 nations based on the number of tax payments, the time it takes to comply and its TTR.
|Country||Overall paying taxes ranking||Total tax payments||Time to comply (number of hours)||Total tax rate (%)|
Some of the other global key findings from the Paying Taxes 2014 report include:
For more information about the Paying Taxes study, visit: http://www.pwc.com/ca/payingtaxes.
About PwC Canada
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About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.