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TAXATION: DO CANADIAN CORPORATIONS PAY THEIR SHARE?

By: Jeff LaRoche

When looking at large corporations on the Canadian soil, one might wonder what keeps them there. To fully understand such a question, you must study the business, but most of all its taxation and regulation. Big corporations in Canada don't pay their full share when it comes to taxes. The central government helps out big businesses in order to keep the money circulating through Canada instead off other countries. It is seen as inappropriate and unfair that corporations with profitable operations benefit from government services without supporting such services through income tax. Also, current levels of taxation were cited as a major problem for Canadians. Since Canadian corporations pay a lower corporate and income tax, if the government was to raise the tax who would pay it at the end. Another clear example which supports such argument is seen when it comes to high payroll tax. Since businesses claim that high payroll tax will force them to fire employees, this gives them another advantage in not paying their expected share. Businesses pay less then what is expected of them to pay.



It is seen as unfair and inappropriate that corporations with large profitable operations in the provinces benefit from government services without supporting such services through income tax. If businesses don't pay for them through their appropriate tax, then the only way to fund such money is by forcing the everyday citizen to pay it in order to make such programs operational and available. Such treatments show an overall loop of unfairness in the Canadian policies. The only way to prevent such inequalities is by " considering and applying a special tax that would be imposed on profitable corporations that have been able to use subsides delivered through tax cuts" 1. It is always seen as a difficult task going against government regulations, but if such action would force more equality when regarding tax regulations then it should be done.



Current levels of taxation were cited as a major problem for Canadian citizens. Since Canadian corporations pay a much lower corporate and income tax that should be paid, if these taxes were to go up, ordinary Canadians would be the ones suffering from it, not the large business. This portrays early signs of inequality. Corporate taxes tend to be passed onto employees, ordinary Canadians. This is how this matter is seen through the eyes of corporations; If we have to pay more tax, then we'll cut the current salaries of our employees in order to compensate for it. This higher tax will also be passed onto the consumers in the form of higher prices, again to compensate for the increase. A higher tax will again tend to be passed onto the investors in the form of lower then average dividends. Surely now it is clear that there in no way in battling such problem. No matter what the average citizen does in order to fight such unfairness that is set out by corporations through their tax , he or she will be the one losing at the end. You simply can't have one without the other!



High payroll taxes force small businesses along with many large ones to fire or not hire additional employees. " In a community where there are few large employers and where small business is crucial to job creation, the present complexity of taxes the employer must collect is a disincentive to expansion and the creation of more jobs."



Such claims give advantages to corporations trying to escape their dues. For business, lower payroll tax rates were ranked as the most important component of job creation. As a result the Chamber of Commerce report recommended that "employee UI premiums be reduced to$1.57/$100 of insurable earnings and the employer levy be reduced to $2.20/ employee"3. This further more supports claims that corporations are given special treatments when it comes to paying the full share. Again we see that if such taxes were to go up, this would significantly increase the rate of unemployment resulting in a poor economy. This shows a no win situation again for the Canadian citizens. No matter what is done, large businesses will always have it their way.



When looking at large businesses . one might wonder what keeps them on the Canadian soil. The answer is simple, special tax privileges resulting in paying less than what is expected. This is seen through corporations with profitable operations in the provinces benefiting from government services without supporting such through tax. Also by threatening the population that they are not the ones that will have to pay for their heavy taxes, and if such taxes become operational they will fire employees in order to compensate for their losses. They're in no win for the average citizen when entering such battle, but it is evident that Canadian corporations don't pay their share when it comes to tax.

Article Source: http://www.articlesnatch.com

About the Author:
Jeff LaRoche is a senior business plan consultant at genuinewriting.com. He has written hundreds of successful business plans for entrepreneurs since 2003. He started out as a persuasive essays writer and gained popularity as a masterful creator of custom research papers

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