London, United Kingdom, December 24, 2011 --(PR.com
)-- Lower profit tax rates and the harmonization of many tax procedures have seen Canada retain its ranking as one of the world’s top ten business environments, at least in terms of tax compliance.
The annual World Bank Doing Business report assesses regulations affecting domestic firms in 183 economies, ranking each on the basis of various criteria including ease of starting a business, insolvency resolution, cross-border trade and the ease (or otherwise) of paying taxes. Russell Bedford member firms have contributed to the report’s Paying Taxes survey since 2009, with 51 member and correspondent firms this year contributing data on tax regulation, compliance and the real tax burden on businesses and entrepreneurs.
This year’s Paying Taxes survey ranks Canada in eighth place, for the second year running. The country is ranked in 13th place worldwide in terms of overall ease of doing businesses.
The report commends Canada for wide-ranging reforms in unifying tax procedures, and in lowering taxes on profits. “Canada made paying taxes easier and less costly for companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales taxes … After harmonizing federal and provincial profit taxes beginning in the 2009 tax year, the country unified federal and municipal sales taxes in Ontario and British Columbia, lessening the tax compliance burden. Beginning in the 2010 tax year businesses are subject only to the federal harmonized sales tax, which replaces the former federal goods and services tax and provincial sales tax. The harmonization creates a tax regime that is easy to administer and easy to comply with.”
Harris Kligman, tax partner at Russell Bedford member firm Kestenberg Rabinowicz Partners LLP and co-director of the Russell Bedford Tax Services Group, commented: “It is encouraging to see Canada confirmed as one of the world’s leading destinations: the 130 hours per year that Canadian businesses have to spend on tax compliance is significantly below the OECD average of 186, and is a direct result of recent initiatives to minimize the compliance burden on business.”
For further information, contact Harris Kligman on +1 905 946 1300 or Kempton Bedell-Harper on +44 20 7410 0339. Alternatively, visit the websites at www.krp.ca and www.rb-tax.com and www.russellbedford.com .
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About Russell Bedford International
Established in 1983, Russell Bedford International is a global network of independent firms of accountants, auditors, tax advisers and business consultants.
Ranked amongst the world's leading accounting and audit networks, Russell Bedford is represented by some 460 partners, 5000 staff and 200 offices in more than 80 countries in Europe, the Americas, the Middle East, Africa and Asia-Pacific.
All Russell Bedford affiliates are well-established firms offering international business advice and services to local and multinational clients. Most provide a full range of services comprising accounting, auditing, tax advice, general business guidance and financial consulting. In addition, many have special expertise in particular fields, such as international taxation or information technology.
In January 2008 Russell Bedford International was named one of the first 17 full members of the IFAC Forum of Firms after reporting it had implemented a globally coordinated quality assurance programme, committed to the use of International Standards on Auditing (ISAs), and met other specific ethics requirements.
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