How Does the Taxman Measure Up In Canada?
As Canadians we all do our fair share of moaning about the taxes we are expected to pay. For those that own their own business there is a double whammy. They have both the business tax as well as their personal tax to deal with. When it comes to taxes though are we adopting the attitude of “the grass is always greener on the other side”? If the tax demands of this country are really a pet peeve of yours then it might be worth looking at what the tax situation is like in other countries, and see if maybe we are becoming a bit of a tax whiner.
You may be surprised to discover that overall Canada has the lowest tax burden compared to any other country. At least that is what some of the latest studies in this area are indicating.
Now here we are talking about taxes in respect to the Federal level, but as we all know taxes don’t stop there. We have to also look at the provincial tax situation. While many of us like to gripe about the income tax, there are many other forms of tax that has to be taken into account as well.
Of course it is important to be on top of the tax costs when it comes to business, but it shouldn’t be the only priority that needs to be considered when thinking about starting a business, or scaling up the business you have.
Running a modern day business in Canada is calling for a lot more creativity then it ever has in the past. This is not just because of having to pay substantial taxes, but also is due to a lot of people simply not having the money to spend like they used to. There are a lot of factors that contribute to this.
Canada is quite proud of where they measure up in the tax world when it comes to being one of the best tax situation places to set up a Corporation, but some feel that the Government doesn’t do a great job at advertising this or using it as an incentive to draw more business to the country.
For those that are operating a business here in Canada they aren’t quite clear as to whether they want more business to start here anyway, after all it could mean more competition for them. What they may be forgetting is, that the more businesses there are, the more potential job opportunities exist, and the more people that are working, means more money to spend.