Centre on Tax Analysis, Fiscal Incentives, and Competitiveness (TAFIC)

A key determinant of Canadian productivity and competitiveness is the system of fiscal incentives, embracing both the tax system and subsidies targeted at generating desired activity. For Canada to succeed as a nation, it is important that taxes and targeted expenditures are both appropriate and efficient.

Canada’s record on productivity growth has been poor over the last decade, especially when compared with that of our neighbour to the south. From 1998 to 2011, non-farm labour productivity in the United States grew on average by 2.8 per cent per year, more than double the 1.3 per cent growth rate posted in Canada.

Given Canada’s poor track record on productivity and business innovation, there are legitimate concerns the entire system of fiscal incentives no longer meets the current and future realities of a truly global marketplace, an aging workforce, a resource-dominant economy, and rapidly growing emerging economies. By implementing reforms to the Canadian system of taxes and other fiscal incentives, Canada could be better positioned to succeed in an increasingly competitive world market.

What’s New

Benchmarking Provincial Tax Burdens
(Briefing, 61 pages, May 2016)
This report compares the tax burden on businesses and individuals among provinces based on the calculation of average tax burden ratios. It also discusses the concept of the marginal effective tax rate.

Comparaison des charges fiscales
(Resumé, 67 pages, May 2016)
Ce rapport compare le fardeau fiscal des entreprises et des particuliers dans les différentes provinces sur la base du calcul des ratios moyens de charge fiscale. Il aborde également la notion de taux effectif marginal d’imposition.

Canadian Corporate Dividend Withholding Tax: Holding Back Inbound Investment
(Briefing, 23 pages, March 2016)
Is Canada holding back inbound investment? This briefing indicates that eliminating the Canadian withholding tax on dividend payments to non-residents would lift foreign direct investment of $2.6 billion per year.

La retenue d’impôt sur les dividendes au Canada : Un frein à l’investissement étranger?
(Resumé, 27 pages, Mars 2016)
Le Canada freine-t-il les investissements étrangers? D’après ce document, supprimer la retenue d’impôt canadienne sur les dividendes versés aux non-résidents ferait augmenter l’investissement direct étranger de 2,6 G$ par an.

From Landline to Mobile Broadband: Tax Drivers of Investment for Canada’s Telecom Industry
(Briefing, 28 pages, December 2015)
Understand why accelerating the CCA rate for telecommunications equipment would boost industry investment and real GDP for Canada.

Du téléphone fixe au haut débit mobile : Déterminants fiscaux de l’investissement dans le secteur canadien des télécommunications
(Note de recherche, 32 pages, Décembre 2015)
Découvrez pourquoi l’accélération de l’amortissement de la déduction pour amortissement (DPA) applicable au matériel de télécommunications stimulerait l’investissement sectoriel et le PIB réel au Canada.

Centre on Tax Analysis, Fiscal Incentives, and Competitiveness

Contact Us

For more information about TAFIC, please contact:

Jo-Leen Folz
Network Officer
Email imagefolz@conferenceboard.ca