Canada has slipped down one place in a PwC assessment that compares the ease of paying corporate taxes in countries around the globe.
The Paying Taxes 2012 report ranked Canada in 11th position out of 183 countries, down from 10th position last year.
The report measures the overall ease of paying taxes for a hypothetical small to medium-sized domestic business. It assesses three factors: the number of tax payments per year; time taken to compile returns and submit tax payments; and companies’ total tax liability as a percentage of pre-tax profits.
While Canada’s ranking improved dramatically between 2010 and 2011, leaping from 28th to 10th on PwC’s scale, the country slipped slightly this year in each of the three categories assessed.
- In terms of the number of payments businesses make, Canada slipped to 17th in 2012 from 15th in 2011.
- For the time required to comply with tax requirements, Canada slipped to 37th this year from 34th the year previous.
- In the tax rate ranking, the country slipped to 39th from 37th last year.
However, despite slipping relative to last year, Canada’s business tax rate remains well ahead of the U.S. rate, which ranks in 131st place of the countries studied.
