Study: Indicators of profit shifting by multinational enterprises operating in Canada

Released: 2019-06-18

Statistics Canada has developed a dashboard of indicators using existing data to monitor whether multinational enterprises operating in Canada are shifting profits to lower tax countries, also known as Base Erosion and Profit Shifting (BEPS). These indicators suggest that from 2011 to 2016, some multinational enterprises in Canada may have shifted profits to minimize the amount of taxes they owed globally.

The Organisation for Economic Co-operation and Development has estimated that globally, this practice accounts for a significant amount in lost tax revenue annually.

One of the indicators suggests that about one-fifth of outward foreign direct investment by multinational enterprises operating in Canada may not be attributable to real economic factors.

Multinational affiliates in low-tax countries were more than twice as profitable as their enterprise-group overall from 2011 to 2016.

Products

The analytical study "Indicators of profit shifting by multinational enterprises operating in Canada" is now available as part of Analysis in Brief (Catalogue number11-621-M).

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).