In search of better tax outcomes
Exploring the world of tax inversions
With highly efficient labour markets, a solid institutional
environment and a strong banking system, Canada has long
been considered one of the most competitive nations in the world.
In fact, in its most recent rankings in 2014, Bloomberg declared
Canada the second best country in the world for business (behind
only Hong Kong), due in part to the receptivity of its consumers—
measured by the size of its middle class, household consumption
and GDP per capita.
Yet one of Canada's true differentiators is missing from these
rankings: its corporate tax rates. As of 2015, Canada's combined
federal corporate tax rate ranges from 25 percent to 31 percent
(depending on the applicable provincial rate). Admittedly, some
other countries have lower total tax rates, including Ireland at
12.5 percent, the UK at 20 percent and Denmark at 23.5 percent.
1 Bloomberg Rankings, January 21, 2014. "Best Countries for Business 2014." Accessed at
on November 9, 2015.
CORPORATE TAX RATES