Despite being the most profitable companies in the country, Canadian banks pay 1/3 the tax rate of other large corporations. They also pay a lower rate of tax than big banks in any other G7 country. The Canadian Bankers Association, on behalf of the Big Five banks, said without more detail on specific legislative measures, it’s difficult to know how the reforms will affect banks. Cracking down on tax-free corporate distributions to foreigners, a method used to play Canada’s tax rules off those in other countries to evade paying taxes in either place. New measures will “prevent unintended, tax-free distributions by Canadian corporations to non-resident shareholders through the use of certain transactions involving partnerships and trusts,” the budget states.

Source: thestar February 28, 2018 18:22 UTC