taxation

There was a lot of political noise emanating from various provincial capitals over the last year regarding capital taxes, tax essentially assessed on the debt and equity of a company. BC boldly announced it would eliminate its general corporate capital tax. Quebec committed to more than halving the applicable rate. Saskatchewan, the country’s largest user of capital taxes announced it would increase the threshold at which it applies. And yet, after looking at the most recent data, the most striking feature is how little things have changed in 2002.

It has been called the most damaging and detrimental tax in Canada. This wealth and income killing tax is little known outside the circles of academia, tax-planning, and corporate boardrooms. However, the corporate capital tax is by far the most destructive and growth-inhibiting tax imposed by Canadian governments.