FCPP Publications :: Undermining Competition

FCPP Publications :: Undermining Competition: "Undermining Competition
The tax-free advantage—and unfairness—of Crown corporations in Canada

In Brief:
One of the most egregious examples of tax inequity and unfairness in Canada is the constitutional tax exempt status afforded Crown corporations, particularly those engaged in commercial activities; this affords them an unfair advantage in the marketplace over private sector competitors.
The choice by Canadian governments to not eliminate this tax inequity is reinforced by the decisions of our courts. This is to be contrasted with the approach of American courts who have not allowed such status to apply to state entities engaged in commercial activity.
Governments in Canada could eliminate this tax inequity and unfairness using legislation. A good template exists in the form of legislation passed by the British Columbia legislature in 2003 which eliminated such status for the BC Ferry Corporation.


This is a fair assessment" Imagine if you went to the trouble of starting a small business, including finding the seed money, working long hours and successfully turning a profit each year. You then, of course, paid all taxes every year and on time. Imagine then that the government excused your competitor from paying those taxes. That would violate any notions of equity, neutrality and fairness which should be the highlights of any tax regime." Lets equalize the playing field -not help inefficient producers-PR

A legal solution is readily at hand; the question is whether governments have the political will to do so." read more