Total Tax Contribution:

Economic growth bolsters public finances

Sixth Annual Canadian Total Tax Contribution Survey:

Economic growth bolsters public finances

Welcome to the sixth annual Total Tax Contribution survey of Business Council of Canada members. For this survey, 83 of Canada’s largest businesses provided tax data for the 2017 fiscal year, demonstrating the significant contribution these large businesses make to public finances and to the Canadian economy.

The Business Council of Canada’s member companies that took part in this survey contributed $76.8 billion to the public finances, comprising $31.2 billion in taxes borne, $40.8 billion in taxes collected, and another $4.8 billion in other payments to government, such as royalties.

Total Tax Contribution and other payments as compared with annual GDP growth, 2012-2017

The Canadian economy grew strongly in 2017, reaching its fastest pace in six years. Building from a year of stagnant nominal GDP growth in 2015, total payments have returned to the levels experienced in 2014, highlighting that GDP growth is reflected in the Total Tax Contribution (TTC) of Canada’s most established businesses.

Total Tax Contribution

The Total Tax Contribution for the survey participants in 2017 was $72.0 billion: $31.2 billion in taxes borne and $40.8 billion in taxes collected. Participants made a further $4.8 billion in other payments, such as royalties.

Contributions in the context of social spending

To put in context the significance of the contributions by these 83 companies, the total TTC was greater than federal spending in the 2018 budget on key social programs related to elderly benefits ($51 billion) and children’s benefits ($23 billion) combined

With a stronger economy in 2017, there was an increase in taxes borne and corporate income tax

The overall increase in taxes borne (up 5.9% on a like-for-like basis compared to 2016) was driven by an increase in corporate income tax (accounting for 6.9 percentage points), primarily driven by the banks and FS companies that participated in the study. The increase in corporate income tax reflects increasing profits compared to 2016.

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