Surveying Canada’s Leading Enterprises
Companies provided data for the Total Tax Contribution survey
Average Total Tax Rate our survey participants were subject to in 2016
Business taxes and other gov’t payments were identified in this survey
Welcome to the fifth annual Total Tax Contribution survey of Business Council of Canada members. For this survey, 87 of Canada’s largest businesses provided tax data for the 2016 fiscal year, demonstrating the significant contribution these large businesses make to public finances and to the Canadian economy.
The 87 firms that took part in this survey contributed $68.3 billion to public finances, comprising $26.5 billion in taxes borne, $38.1 billion in taxes collected and another $3.7 billion in other payments to government.
The Total Tax Contribution (TTC) for the participants in 2016 was $68.3 billion: $26.5 billion in taxes borne and $38.1 billion in taxes collected. This also includes $3.7 billion in other payments, such as royalties.
*Taxes borne are a cost to the participating companies, whereas taxes collected are those generated by a company's operations.
For every dollar of corporate income tax, the survey participants paid a further $1.08 of other business taxes and $0.25 in other payments to government. For every dollar of corporate income tax paid by the participants, there was another $3.01 in taxes collected.
In total, we identified 68 business taxes and other payments to governments in this survey under the Total Tax Contribution methodology.
Since the survey began, there has been a gradual upward trend in the Total Tax Rate (TTR) paid by large Canadian companies. On average in 2016, the participants were subject to a TTR of 36.3%, increasing from 33.4% in 2012. In 2015, the TTR peaked due to a combination of lower commodity prices which decreased profits and corporate income taxes, but an increase in taxes not dependent on profits, increased the overall tax burden as a percentage of profit.
*The Total Tax Rate is a measure of the total tax burden of participants. The calculation is total taxes borne - corporate income tax plus all other taxes borne - as a percentage of profit before taxes borne.