PwC and World Bank Group release Paying Taxes 2017 Report
TORONTO, Nov. 30, 2016 /CNW/ - According to the 11th edition of the Paying Taxes report released by PwC and the World Bank Group, Canada ranks 2nd amongst the G7 nations. Compared to all 190 economies, Canada ranked 17th and 2nd out of the G7 countries, just behind the UK.
The Paying Taxes 2017 report measures the overall ease of paying taxes for small to medium-sized domestic companies based on the number of tax payments per year, the time required to compile returns and submit tax payments as well as these companies' total tax liability as a percentage of pre-tax profits.
This year, the report introduced a new measure, the post-filing index, which measures the time to obtain a VAT refund, correct a corporate income tax return and deal with the corresponding audits. This represents the most complex interactions with a tax authority, therefore providing a more fulsome picture of the tax process.
On average, small to medium-sized Canadian companies make eight tax payments (vs. an average of 25 payments globally) per year and take 131 hours (vs. an average of 251 hours globally) to comply with the tax requirements.
"The Canadian tax system is one of the more efficient ones in the world when it comes to supporting small and medium-sized companies and this report solidifies our position as a global leader," says Peter van Dijk, National Tax Policy Leader. "Despite our position, there are still significant opportunities to collaboratively work with the government to improve tax compliance and audit efficiencies. An often time-consuming and complex tax compliance and audit process should be further streamlined to allow companies to spend more time focusing on growing their businesses and creating meaningful jobs. The global business world is rapidly getting more competitive and the efficiency of the Canadian tax system is a critical component of our Canadian investment climate. In that respect, we should not only compare ourselves with the G7, but with the most competitive economies of the world. Many of those economies are not members of the G7."
| Overall Paying Taxes Ranking 2017 |
|||||
| Country |
Overall Ease of Paying Taxes Ranking |
Total Tax Payment (#) |
Time to Comply (hours) |
Total Tax Rate (%) |
Post-filing index |
| Canada |
17 |
8 |
131 |
21.0 |
76.44 |
| France |
63 |
8 |
139 |
62.8 |
92.42 |
| Germany |
48 |
9 |
218 |
48.9 |
97.45 |
| Italy |
126 |
14 |
240 |
62.0 |
48.39 |
| Japan |
70 |
14 |
175 |
48.9 |
78.91 |
| UK |
10 |
8 |
110 |
30.9 |
87.44 |
| US |
36 |
11 |
175 |
44.0 |
93.12 |
The following table illustrates Canada's position over the years compared to other G7 nations.
| Overall Paying Taxes Ranking Year over Year |
|||||
| Overall Ease of Paying Taxes Ranking |
|||||
| Country |
2017 |
2016 |
2015 |
2014 |
2013 |
| Canada |
17 |
9 |
9 |
8 |
8 |
| France |
63 |
87 |
95 |
52 |
53 |
| Germany |
48 |
72 |
68 |
89 |
72 |
| Italy |
126 |
137 |
141 |
138 |
131 |
| Japan |
70 |
121 |
122 |
140 |
127 |
| UK |
10 |
15 |
16 |
14 |
16 |
| US |
36 |
53 |
47 |
64 |
69 |
To access the full Paying Taxes Report, click here.
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About PwC Canada
At PwC Canada, our purpose is to build trust in society and solve important problems. More than 6,500 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 208,000 people in 157 countries. Find out more and tell us what matters to you by visiting us at www.pwc.com/ca.
© 2016 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
About World Bank
The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org.
SOURCE PwC (PricewaterhouseCoopers)
Pierre Campeau, Manager, Public Relations, T: 416 687-8643, Email: [email protected]; David Gollom, Senior Manager, Public Relations & Social Media, T: 416 869-2386, Email: [email protected]
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