An analysis of Canadian corporate income tax revenues during the 1984-94 period shows a relative shifting of tax revenue shares between Canadian and foreign-controlled corporations, and a substantial change in the debt levels of foreign-controlled corporations, as well as Canadian-based multinationals. We claim that these changes may have been associated with the tax reforms undertaken by the United States and Canada in the mid-1980s resulting in the relative change in the tax rates between the two countries. We also hypothesize that if this difference persists and in Canadian-controlled corporations continue to aggressively expand abroad, the Canadian corporate tax base could experience further pressure.

International Tax and Public Finance
Sprott School of Business

Jog, V, & Tang, J. (Jianmin). (2001). Tax reforms, debt shifting and tax revenues: Multinational corporations in Canada. International Tax and Public Finance, 8(1), 5–25. doi:10.1023/A:1008749415492