IDEAS home Printed from https://ideas.repec.org/a/zbw/jumsac/294961.html
   My bibliography  Save this article

Corporate Taxation in the U.S. and Canada – A Comparative Analysis

Author

Listed:
  • Gürlek, Elif

Abstract

As the degree of global trade integration increased, corporate taxation became a border-crossing matter that obliged governments to reassess the tax attractiveness of their jurisdictions. The U.S. and Canada are two major players of today's trade landscape and the corporate tax environment of these two countries impact MNEs investment decisions. Historically, Canada offered a more favourable tax environment compared to its neighbour. However, the U.S. tax reform, TCJA, challenged Canada's tax attractiveness. This paper aims to assess the similarities and differences of both countries' tax systems after the tax reform based on the tax attractiveness criteria. Following, the paper examines lessons that can be derived for Canada to regain its strong position in the global tax attractiveness scenery. The U.S. and Canada have the potential to set an example for lawmakers and show that it is possible to create a corporate taxation environment that preserves governments' interest whilst creating attractive taxation policies in the eye of MNEs.

Suggested Citation

  • Gürlek, Elif, 2021. "Corporate Taxation in the U.S. and Canada – A Comparative Analysis," Junior Management Science (JUMS), Junior Management Science e. V., vol. 6(3), pages 489-506.
  • Handle: RePEc:zbw:jumsac:294961
    DOI: 10.5282/jums/v6i3pp489-506
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/294961/1/5116-3346.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.5282/jums/v6i3pp489-506?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Burman, Leonard E. & Slemrod, Joel, 2013. "Taxes in America: What Everyone Needs to Know," OUP Catalogue, Oxford University Press, number 9780199890262.
    2. Sebastien Bradley & Estelle Dauchy & Leslie Robinson, 2015. "Cross-Country Evidence on the Preliminary Effects of Patent Box Regimes on Patent Activity and Ownership," National Tax Journal, National Tax Association;National Tax Journal, vol. 68(4), pages 1047-1072, December.
    3. Mr. Christophe J Waerzeggers & Mr. Cory Hillier, 2016. "Introducing a General Anti-Avoidance Rule (GAAR): Ensuring That a GAAR Achieves Its Purpose," IMF Tax Law Technical Note 2016/001, International Monetary Fund.
    4. Peter Harris & Michael Keen & Li Liu, 2019. "Policy Forum: International Effects of the 2017 US Tax Reform--A View from the Front Line," Canadian Tax Journal, Canadian Tax Foundation, vol. 67(1), pages 27-39.
    5. Kenneth McKenzie & Michael Smart, 2019. "Tax Policy Next to the Elephant: Business Tax Reform in the Wake of the US Tax Cuts and Jobs Act," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 537, March.
    6. Kunka Petkova & Andrzej Stasio & Martin Zagler, 2020. "On the relevance of double tax treaties," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(3), pages 575-605, June.
    7. Christophe J Waerzeggers & Cory Hillier, 2016. "Introducing a General Anti-Avoidance Rule (GAAR); Ensuring That a GAAR Achieves Its Purpose," IMF Tax Law Technical Note 16/1, International Monetary Fund.
    8. W. Steven Clark & Alexander Klemm, 2015. "Policy Forum: Effective Tax Rates for Multinationals--The Role of Tax Incentives and Tax Planning," Canadian Tax Journal, Canadian Tax Foundation, vol. 63(1), pages 133-148.
    9. Albert De Luca & Joanne Hausch, 2017. "Policy Forum: Patent Box Regimes--A Vehicle for Innovation and Sustainable Economic Growth," Canadian Tax Journal, Canadian Tax Foundation, vol. 65(1), pages 39-60.
    10. William Gale & Hilary Gelfond & Aaron Krupkin & Mark J. Mazur & Eric Toder, 2018. "A Preliminary Assessment of the Tax Cuts and Jobs Act of 2017," National Tax Journal, National Tax Association;National Tax Journal, vol. 71(4), pages 589-612, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. AnnMarie Bennett & Breda Murphy, 2017. "The Tax Profession: Tax Avoidance and the Public Interest," Economics Department Working Paper Series n286-17.pdf, Department of Economics, National University of Ireland - Maynooth.
    2. Laudage, Sabine, 2020. "Corporate tax revenue and foreign direct investment: Potential trade-offs and how to address them," IDOS Discussion Papers 17/2020, German Institute of Development and Sustainability (IDOS).
    3. Mark Vancauteren & Michael Polder & Marcel van den Berg, 2019. "The Relationship between Tax Payments and MNE’s Patenting Activities and Implications for Real Economic Activity: Evidence from the Netherlands," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 237-269, National Bureau of Economic Research, Inc.
    4. Ligia Alba Melo-Becerra & Javier Ávila Mahecha & Jorge Enrique Ramos-Forero, 2017. "The Effect of Corporate Taxes on Investment: Evidence from the Colombian Firms," IHEID Working Papers 10-2017, Economics Section, The Graduate Institute of International Studies.
    5. Ben Klemens, 2017. "Intellectual Property Boxes and the Paradox of Price Discrimination," Working Papers 1703, Council on Economic Policies.
    6. Jing Huang & Linda Krull & Rosemarie Ziedonis, 2020. "R&D Investments and Tax Incentives: The Role of Intra‐Firm Cross‐Border Collaboration," Contemporary Accounting Research, John Wiley & Sons, vol. 37(4), pages 2523-2557, December.
    7. Schwab, Thomas & Todtenhaupt, Maximilian, 2021. "Thinking outside the box: The cross-border effect of tax cuts on R&D," Journal of Public Economics, Elsevier, vol. 204(C).
    8. Sophia Chen & Estelle Dauchy, 2018. "International Technology Sourcing and Knowledge Spillovers: Evidence from OECD Countries," IMF Working Papers 2018/051, International Monetary Fund.
    9. Vincent A. Mahler & David K. Jesuit, 2018. "Indirect taxes and government inequality reduction: A cross-national analysis of the developed world," Journal of Income Distribution, Ad libros publications inc., vol. 26(2), pages 1-26, July.
    10. Ronald B. Davies & Dieter Franz Kogler & Ryan M. Hynes, 2020. "Patent Boxes and the Success Rate of Applications," Working Papers 202018, School of Economics, University College Dublin.
    11. Haufler, Andreas & Schindler, Dirk, 2023. "Attracting profit shifting or fostering innovation? On patent boxes and R&D subsidies," European Economic Review, Elsevier, vol. 155(C).
    12. Park, Sung Jae & Lee, Kyu-Min & Yang, Jae-Suk, 2023. "Calculating the country risk embedded in treaty-shopping networks," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    13. Iuliia Shybalkina, 2021. "The role of organized groups in administrative burdens of property taxation," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 4(1).
    14. Annette Alstadsæter & Salvador Barrios & Gaetan Nicodeme & Agnieszka Maria Skonieczna & Antonio Vezzani, 2018. "Patent boxes design, patents location, and local R&D," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 33(93), pages 131-177.
    15. Martina Baumann & Tobias Boehm & Bodo Knoll & Nadine Riedel, 2020. "Corporate Taxes, Patent Shifting, and Anti-avoidance Rules: Empirical Evidence," Public Finance Review, , vol. 48(4), pages 467-504, July.
    16. Sang-Yeob Lee & SungMan Yoon, 2019. "Relationship between Financial Income Tax Reform and Implicit Tax: Case of South Korean Bond Market," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(8), pages 964-976, August.
    17. Tibor Hanappi & Ana Cinta González Cabral, 2022. "The impact of the international tax reforms under Pillar One and Pillar Two on MNE’s investment costs," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1495-1526, December.
    18. Petr Janský & Jan Láznička & Miroslav Palanský, 2021. "Tax treaties worldwide: Estimating elasticities and revenue foregone," Review of International Economics, Wiley Blackwell, vol. 29(2), pages 359-401, May.
    19. Kenneth McKenzie, 2019. "Altering the Tax Mix in Alberta," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 12(25), September.
    20. Dmitry Erokhin, 2023. "Tax effects on foreign direct investment—Just a rerouting," The World Economy, Wiley Blackwell, vol. 46(9), pages 2808-2834, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:jumsac:294961. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://jums.academy/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.