Tax burden pushes Canada to 103rd in global ranking

Canada’s tax burden is among the heaviest in the world, pushing the country down to 103rd place in a global ranking by the World Bank Group and PricewaterhouseCoopers measuring total taxes.

The report, Paying Taxes 2010, surveyed mid-size companies in 183 countries using three indicators, including the total tax rate, the time taken to comply with the major types of taxes, and the number of required payments.

All indicators considered however, Canada scored much better placing 28th on the list measuring ease of paying taxes helped by generally simpler administrative procedures.

"Government efforts to streamline tax procedures and reduce time spent on compliance can make an important difference for small and medium enterprises, especially in difficult economic times," said Lincoln Schreiner, a Tax Services partner and leader of the Vancouver International Tax Services department with PwC.

Forty-five economies made it easier to pay taxes last year, according to the study, marking a 25% increase over the previous year.

"The global recession means falling tax revenues," Schreiner said.

“Governments are now thinking harder about the right balance between maintaining sufficient public revenues for the future and incentives that will continue to provide investment and economic growth in the private sector."