Abstract
An analysis of Canadiancorporate income tax revenues during the 1984–94 periodshows a relative shifting of tax revenue shares between Canadianand foreign-controlled corporations, and a substantial changein the debt levels of foreign-controlled corporations, as wellas Canadian-based multinationals. We claim that these changesmay have been associated with the tax reforms undertaken by theUnited States and Canada in the mid-1980s resulting in the relativechange in the tax rates between the two countries. We also hypothesizethat if this difference persists and in Canadian-controlled corporationscontinue to aggressively expand abroad, the Canadian corporatetax base could experience further pressure.
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Jog, V., Tang, J. Tax Reforms, Debt Shifting and Tax Revenues: Multinational Corporations in Canada. International Tax and Public Finance 8, 5–25 (2001). https://doi.org/10.1023/A:1008749415492
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DOI: https://doi.org/10.1023/A:1008749415492