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Study: Extensions of indicators on base erosion and profit shifting in Canada

Released: 2021-12-02

Statistics Canada is extending on the dashboard of indicators using data from the Country-by-Country report to monitor whether multinational enterprises operating in Canada are shifting profits to lower tax countries, also known as Base Erosion and Profit Shifting. These indicators suggest that in 2016, some multinational enterprises in Canada may have shifted profits to minimize the amount of taxes they owed globally.

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

The indicators in this paper look at trends in profitability of affiliates of MNEs with operations in Canada. The data suggest that affiliates in lower-tax countries earn larger proportions of related party revenues and are more profitable.

Additionally, the data suggest that Luxembourg and the Netherlands are locations of financial activity for MNEs with operations in Canada.


The analytical study "Extensions of indicators on base erosion and profit shifting in Canada" is now available as part of Analysis in Brief (Catalogue number11-621-M).

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