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Tax time

February 24, 2013

The April tax filing deadline is nearing. For the IRS it’s 15-Apr, while in Canada it’s 30-April to file one’s income taxes. KPMG has published a paper on worldwide tax competitiveness which is interesting. In the North resource taxes are more important than corporate or income taxes in affecting economic activity.

The KPMG study for 2012 looked at worldwide corporate income taxes, ‘other’ taxes like capital property and sales, and statutory labour costs.  A few highlights:

The northern economies are much more concerned with taxes derived from resources- oil and gas and mining royalties.


Generally the territorial tax rates are lower than the provinces. Alaska’s rates are lower than most of the lower 48.

The north can ‘under-tax’ its citizens due to formula financing (generous federal transfers to Canadian territories) and the depleting wealth coming from Alaska’s North Slope.