Improving the Income Taxation of the Resource Sector in Canada.

Department of Finance. Advocates establishment of a common statutory rate of corporate income tax for all sectors, including consistent treatment of costs, both across resource projects and between the resource sector and other sectors of the economy to supposedly promote more efficient development of Canada’s natural resource base. Most of the proposed changes involve tax reductions to reduce the tax bite on resource projects relative to competitors such as the United States. Not clear that the proposed changes will improve tax system neutrality; rather, they are more likely to boost subsidies to the resource sectors.