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 ROOM FOR IMPROVEMENT IN
CORPORATE TAX SYSTEM
TORONTO, ON – According to a study from the World Bank, IFC, and PricewaterhouseCoopers: Paying Taxes 2008, Canada ranks 99th out of 178 for total tax rate and fares moderately well in ease of paying taxes and administering taxes. The study concludes that there is a win-win opportunity for governments and firms if governments simplify tax systems, ease the compliance cost on business and reduce tax rates.
The study allows direct comparison of tax systems from around the world. It shows how businesses are affected not only by tax rates, but also by the procedural burden of compliance. The report focuses on the number of tax payments made, the time it takes to comply, and the cost of taxes, which is measured by the total tax rate. The total tax rate (TTR) covers five types of taxes that firms pay: profit, social, property, turnover, and other taxes, such as municipal fees and fuel taxes. The steps, time, and cost indicators are used to determine the overall ease of paying taxes.
Canada's ranking this year may seem a step backwards from its 2006 ranking of 77th out of 175. However, according to Tom O'Brien, a PwC Canada tax partner: "Since this year’s report has been written, there has been the elimination of the Canadian federal large corporation tax which represents a real savings for many corporations operating in Canada. And, with decreases in federal and some provincial corporate income tax rates announced for 2007 to 2010, and the harmonization of the Ontario and Canadian corporate tax systems, Canada's total tax rate ranking is expected to improve in the near future."
The top ranking countries with the lowest total tax rate are Vanatu, the Maldives and the United Arab Emirates. The highest are Sierra Leone, Burundi and Gambia. In comparison, the United States lands at the 102 spot and the United Kingdom at 52.
REGUS OPENS BUSINESS CENTRE
KITCHENER, ON - Dallas. TX-based Regus Group has opened a 12,000 sq. ft. business centre on the seventh floor of the TD Canada Trust Centre Building at 55 King Street in Kitchener. The centre features 49 offices, 101 workstations, boardroom and videoconferencing studio. Regus regional vice-president Wes Lenci says the facility targets clients seeking office space that is cost-effective compared to higher rates in Toronto.
UNI-FAB TARGETS GROWTH AT LEAMINGTON-AREA CAMPUS
by Anne Miskovsky
LEAMINGTON, ON - Uni-Fab may have started operations in the outskirts of Windsor in Oldcastle in 1991, but a home in Leamington is what company president Abe Fehr had always set his sights on. That vision materialized recently with the opening of Uni-Fab’s 66,000 sq. ft. plant on Hwy 77 just north of town.
Land-locked in Oldcastle, Uni-Fab now has a “campus” site with 14 surplus acres to attract further development. Fehr has had a number of inquiries from companies that would not only complement his company but would support other industrial sectors in Leamington, including the agri-business sector. Once agreements have been ironed out with MTO for intersection improvements, Fehr expects developments to start appearing in the spring. Of course, there is sufficient property to accommodate his company’s own future expansion.
Uni-Fab is one of southern Ontario’s largest metal fabricating companies, with capabilities that include: custom metal fabrication, mezzanine, ladders and platforms; hydraulic tanks; machine enclosures; carriers and conveyors; laser cutting; and paint and powder coating. The fabrication unit opened a few months ago. The modern paint and powder coating line will soon be onstream, allowing the company to provide a full range of design, fabrication and production services.
Unfazed by the current economic uncertainties, Uni-Fab made a strategic decision to diversify several years ago. Although the automotive sector is important to the company, many clients are in other sectors such as aerospace, energy and resources. “Five years ago, we looked closely at the state of the automotive industry and hooked up with key customers like Giddings and Lewis in Wisconsin,” Fehr says. “Wherever a machine goes, the enclosure follows so our enclosures are custom ordered to suit the client’s design”. Now Uni-Fab has customers in North America, China, Europe and soon Brazil will be added to its export list.
Fehr looks forward to a successful year in 2008. To date, more than half of the year’s orders are already booked, which is highly unusual in the industry. “Our clients are marketing internationally, not just in the U.S., which translates to more stability for us and an assurance of orders.”
Since moving to Leamington, Uni-Fab has added to its workforce, with 78 people now on site. Once the powder coat line is fully operational Fehr expects to add 15-20 more employees.
Anne Miskovsky is Leamington’s Economic Development Officer and a freelance writer.
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