Paying Taxes 2012: The Canadian summary

Canada made paying taxes easier and less costly for companies

Out of 183 economies, Canada ranks 11th in the world when it comes to the ease of paying taxes for the average medium-sized business, according to the sixth annual Paying Taxes 2012 report. Canada made paying taxes easier and less costly for companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonising sales taxes. Paying Taxes is a unique study from PwC Global, the World Bank and IFC and measures the ease of paying taxes across 183 economies worldwide. The ranking for each participating economy is based on the:

• The total tax rate — firm tax liability as a per cent of profits before all taxes borne
• Time — the number of hours per year to prepare, file returns and pay taxes
• Payments — the number of tax payments per year

Paying Taxes records the taxes and mandatory contributions that a medium-size company must pay in a given year as well as measuring the administrative burden of paying taxes and contributions. The project was developed and implemented as part of the Doing Business project by the World Bank and IFC in cooperation with PwC. Taxes and contributions measured include profit or corporate income tax, social contributions and labour taxes paid by the employer, property taxes, property transfer taxes, dividend tax, capital gains tax, financial transactions tax, waste collection taxes, vehicle and road taxes, and any other small taxes or fees. To get the key findings from Paying Taxes 2012 visit www.pwc.com/payingtaxes.