Corporate Statistical Tables (2007 to 2011 tax years)

The corporate statistical tables provide key tax and accounting information as of December 31, 2013, for all T2 returns that were assessed or reassessed for corporations with tax years that fall within the 2007 to 2011 calendar years. These tables will be released yearly.

Explanatory notes

Who has to file a T2 Corporation Income Tax Return?

All resident corporations (and some non-resident corporations)—including non-profit organizations, tax-exempt corporations, and inactive corporations—have to file a T2 Corporation Income Tax Return for every tax year, even if there is no tax payable. The only exception to this rule is a corporation that was a registered charity throughout the year, which has to file a Registered Charity Information Return. The Income Tax Act requires corporations to file their return no later than six months after their tax year-end. For more information on filing requirements, see Guide T4012, T2 Corporation — Income Tax Guide.

Coverage

The statistics in these tables include corporations with tax years ending in 2007 to 2011 that filed corresponding corporation income tax returns as of December 31, 2013. Given their unique filing requirements, certain insurance and non-resident corporations do not have to file the General Index of Financial Information (GIFI) schedules ^{Footnote 1} , so they are not included in the tables on total assets and total revenue.

The Income Statement (Schedule 125) is used to derive total revenue as well as net income (loss) as reported on corporations’ financial statements. Generally, this net income (loss) will differ from the net income (loss) required for tax purposes as certain income and expenses reported in financial statements are not used in calculating net income (loss) for tax purposes.

Schedule 1 of the T2 Corporation Income Tax Return reconciles the net income (loss) reported in the financial statements and the net income (loss) required for tax purposes. This is the starting point in calculating the taxable income. Taxable income is computed by applying specific deductions and additions included on page 3 of the T2 Corporation Income Tax Return to the net income.

Deductions included on pages 4 to 8 of the T2 tax return are applied to the base amount of Part I tax ( taxable income * 38%) in order to derive tax payable.

Confidentiality

The confidentiality of reported corporate statistics is protected under the Income Tax Act. Only grouped corporate statistics are released as they cannot be used to identify individual corporate information.

In some cases, data have been suppressed for confidentiality purposes. Suppressed information also includes valid zeros. Totals include the suppressed information.

In addition, counts are rounded to the nearest ten, and dollar amounts are rounded to the nearest thousand. Totals may not add up due to rounding or suppression.

Data sources

The corporate statistical tables reflect corporation income tax returns filed and assessed or reassessed for the tax years that ended in 2007 to 2011. Statistics used to produce these tables come from a database created within the Intelligence, Statistics and Data Directorate of the Canada Revenue Agency (CRA). It contains data on all corporation income tax returns and related schedules as of December 31, 2013.  The Business Number (BN) file, as of December 31, 2013, was also used for the North American Industry Classification System codes.   

Changes that impact the data

The main changes that affected the corporate income taxes administered by the CRA are:

• On October 6, 2006, the government of Canada signed a memorandum of agreement with the government of Ontario that led to the CRA administering Ontario’s provincial corporate income tax beginning with tax years ending after 2008.
• The small business deduction threshold at which the general federal tax rate applies increased from $400,000 to $500,000 on January 1, 2009.
• The general federal tax rate was 22.12% in 2007 (including a 1.12% surtax), 19.5% in 2008, 19% in 2009, 18% in 2010, and 16.5% in 2011.
• British Columbia’s general corporate tax rate dropped from 12% to 11% effective July 1st, 2008, to 10.5% effective January 1st, 2010 and to 10% on January 1st, 2011.  The small business tax rate of 4.5% dropped to 3.5% effective July 1st, 2008 and to 2.5% effective December 1st, 2008.
• Manitoba’s general corporate tax rate dropped from 14.5% to 14% effective January 1st, 2007, to 13% effective July 1st, 2008 and to 12% effective July 1st, 2009.  Manitoba’s small business tax rate dropped from 4.5% to 3% effective January 1st, 2007, to 2% effective January 1st, 2008, to 1% effective January 1st, 2009 and to 0% effective December 1st, 2010.
• New Brunswick’s general corporate tax rate dropped from 13% to 12% effective July 1st, 2009, to 11% effective July 1st, 2010 and to 10% effective July 1st, 2011.  New Brunswick’s small business tax rate dropped from 2% to 1.5% effective July 1st, 2006; it was increased to 5% effective January 1st, 2007.
• Newfoundland and Labrador reduced its small business tax rate to 4% from 5% for taxation years beginning after March 31st, 2010.
• Nova Scotia reduced its small business tax rate to 4.5% from 5% effective January 1st, 2011.
• Ontario lowered its general corporate tax rate from 14% to 12% effective July 1st, 2010 and to 11.5% effective July 1st, 2011.  The manufacturing and processing tax rate was reduced to 10% from 12% effective July 1st, 2010. Ontario reduced its small business tax rate to 4.5% from 5.5% effective July 1st, 2010.
• Prince Edward Island’s small business tax rate dropped from 5.4% to 4.3% effective April 1st, 2007, to 3.2% effective April 1st, 2008, to 2.1% effective April 1st, 2009 and to 1% effective April 1st, 2010.
• Saskatchewan lowered its general corporate tax rate from 14% to 13% effective July 1st, 2007 and to 12% effective July 1st, 2008.  Saskatchewan reduced its small business tax rate to 4.5% from 5% effective January 1st, 2007 and to 2% effective July 1st, 2011.
• A corporation resident in Canada throughout the tax year can elect to report in a functional currency for tax years that begin on or after December 14, 2007. Functional currency is the currency of a country other than Canada and is the primary currency in which the corporation maintains its records for financial reporting. Presently, qualifying currencies are the U.S. dollar, the Australian dollar, the British pound, and the Euro. Amounts in the tables for corporations reporting in a functional currency have been converted into Canadian dollars using the exchange rate at the balance due date.
• On April 1, 2007, the CRA implemented the compliance refund hold legislation, which required it to delay paying rebates and refunds until all required returns had been filed. This legislation put an administrative burden on corporate entities in the municipalities, universities, schools, and hospitals (MUSH), non-profit organizations (NPO), federal crown corporations, and Indian band sectors because they are exempt from federal income tax and many of these entities had not filed T2 returns in previous years. This measure explains the large increase in 2008 for the Public administration sector in Tables 7 and 8.

For all changes in legislation that have occurred during the 2007 to 2011 period, please consult the Department of Finance website.

Description of items/variables

Corporation

For the purposes of these tables, a corporation is defined at the unique 15-digit program account number. When a corporation files more than one return in a tax year, adjustments are made to avoid double-counting of stock variables such as total assets. Due to multiple year-ends within a calendar year, there are generally more returns than corporations.

Jurisdiction

Jurisdiction is identified using line 750 of the T2 Corporation Income Tax Return. This is the province or territory where corporations earned their income. Usually, this is where a corporation has its permanent establishment. If the corporation earned income in more than one province or territory, “Multi-Jurisdiction” is used. Note that “Newfoundland and Labrador offshore area” and “Nova Scotia offshore area” are included in “Newfoundland and Labrador” and “Nova Scotia” jurisdictions, respectively, in the tables. “Outside Canada” includes corporations that do not have a permanent establishment in any of the provinces or territories and filed a T2 return. In other words, these are non-Canadian corporations that do business in Canada.

Net income (loss) for income tax purposes

Generally, the net income (loss) reported on corporations’ financial statements will differ from the net income (loss) required for tax purposes. Certain income and expenses reported on financial statements are not used in calculating net income (loss) for tax purposes.

Schedule 1 of the T2 Corporation Income Tax Return reconciles the net income (loss) reported on the financial statements and the net income (loss) required for tax purposes.  Amounts included in these tables are those reported on line 300 of the T2 return.

North American Industrial Classification System (NAICS) sector groupings

Corporations are assigned an industry code based on their major business activity in accordance with the NAICS. Industry groupings are based on the 2012 NAICS coding system according to the filer’s most recent assigned industry code. This classification system was developed by the statistical agencies of Canada, Mexico, and the United States to provide common definitions of the industrial structure of the three countries. When a corporation is engaged in more than one activity, it is classified in the industry that corresponds to its main activity.

The NAICS divides the economy into 20 sectors according to a production criterion, with five sectors being largely goods-producing and 15 sectors being entirely services-producing industries. For the purpose of these tables, corporations that have yet to be assigned a NAICS code by Statistics Canada have been classified as “Missing/Not Assigned.” The NAICS codes assigned to corporations are based on the December 31, 2013, version of the BN System. The BN System provides a snapshot of NAICS codes. The codes assigned are therefore used over the five-year period of this release. The groupings are based on the first two digits of the NAICS code. For more information on NAICS codes and groupings, refer to Statistics Canada’s website.

Size

The category “Large” includes all corporations with total assets of more than $15 million. All other corporations are classified as “Small and Medium” corporations. Corporations that did not file a balance sheet (Schedule 100 or Schedule 101) are classified as “Missing.”

Tax year

A tax year includes all T2 returns with a tax year end in the calendar year. For example, all amounts relating to a T2 Corporation Income Tax Return covering the period between September 1, 2008, and August 30, 2009, will be included in the 2009 tax year.

Taxable corporation

For these tables, a corporation is taxable when its taxable income is greater than $10.

Taxable income

This is the income on which the corporation is subject to tax. The net income (loss) for tax purposes is the starting point in the calculation. Taxable income is calculated by applying specific deductions and additions included on page 3 of the T2 Corporation Income Tax Return to the net income. Amounts included in these tables are those reported on line 360 of the T2 return.

Total assets

This is the total of all current, capital, long-term assets, as well as assets held in trust. Amounts included in these tables are those reported on line 2599 of schedule 100 or 101. When a corporation files more than one return in a tax year, adjustments were made to avoid double counting of stock variables such as total assets.

Total revenue

Total revenue is the sum of all farming and non-farming revenues. Amounts included in these tables are the sum of those reported on lines 8299 and 9659 of Schedule 125. Those amounts do not include any deductions for expenses. 

Total tax payable

This is the total amount of tax payable by the corporations before refundable tax credits. It includes both federal and provincial taxes. Provincial taxes in Quebec and Alberta are not included because the CRA does not administer the corporate income tax in those provinces. In addition, the CRA started to administer the Ontario corporate income tax for tax years ending in 2009 and later, so total tax payable for tax years 2007 and 2008 does not include Ontario provincial taxes. Amounts included in these tables are those reported on line 770 of the T2 Corporation Income Tax Return.

Tables in PDF format

Please refer to the explanatory notes about these tables.

• Table 1: Number of corporations by jurisdiction, 2007 to 2011
• Table 2: Number of corporations by size and by jurisdiction, 2007 to 2011
• Table 3: Total revenue by jurisdiction, 2007 to 2011
• Table 4: Net income (loss) for income tax purposes by jurisdiction, 2007 to 2011
• Table 5: Taxable income by jurisdiction, 2007 to 2011
• Table 6: Total tax payable by jurisdiction, 2007 to 2011
• Table 7: Number of corporations by sectors (two digits) based on the North American Industry Classification System, 2007 to 2011
• Table 8: Total assets by sectors (two digits) based on the North American Industry Classification System, 2007 to 2011
• Table 9: Number and percentage of taxable versus non-taxable corporations, 2007 to 2011

Tables in CSV format

Please refer to the explanatory notes about these tables.

Table 1: Number of corporations by jurisdiction, 2007 to 2011

Notes:

• All counts are rounded to the nearest ten.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Counts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Jurisdiction is determined using the jurisdiction code on the T2 return (line 750).

Table 2: Number of corporations by size and by jurisdiction, 2007 to 2011

Notes:

• All counts are rounded to the nearest ten.
• The sum of the data may not add to the total due to rounding or suppressions.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Counts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Jurisdiction is determined using the jurisdiction code on the T2 return (line 750).
• A hyphen [ - ] indicates that the information has been suppressed for confidentiality purposes. Suppressed information also includes valid zeros.        
• The category “Large” includes all corporations with total assets of more than $15 million. All other corporations are classified as “Small and Medium” corporations. Corporations that did not file a balance sheet (Schedule 100 or Schedule 101) are classified as “Missing.”

Table 3: Total revenue by jurisdiction, 2007 to 2011

Notes:

• All amounts are rounded in thousands of dollars.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Amounts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Jurisdiction is determined using the jurisdiction code on the T2 return (line 750).
• Given their unique filing requirements, amounts relating to certain insurance and non-resident corporations are not included in total revenue.
• Amounts for corporations reporting in a functional currency have been converted into Canadian dollars using the exchange rate at the balance due date.

Table 4: Net income (loss) for income tax purposes by jurisdiction, 2007 to 2011

Notes:

• All amounts are rounded in thousands of dollars.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Amounts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Jurisdiction is determined using the jurisdiction code on the T2 return (line 750).
• Amounts for corporations reporting in a functional currency have been converted into Canadian dollars using the exchange rate at the balance due date.

Table 5: Taxable income by jurisdiction, 2007 to 2011

Notes:

• All amounts are rounded in thousands of dollars.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Amounts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Jurisdiction is determined using the jurisdiction code on the T2 return (line 750).
• Amounts for corporations reporting in a functional currency have been converted into Canadian dollars using the exchange rate at the balance due date.

Table 6: Total tax payable by jurisdiction, 2007 to 2011

Notes:

• All amounts are rounded in thousands of dollars.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Amounts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Jurisdiction is determined using the jurisdiction code on the T2 return (line 750).
• Amounts for corporations reporting in a functional currency have been converted into Canadian dollars using the exchange rate at the balance due date.
• The Canada Revenue Agency began to administer the Ontario corporate income tax for tax years ending in 2009 and later, therefore total tax payable for tax years 2007 and 2008 does not include Ontario provincial taxes.
• Quebec and Alberta corporate provincial income taxes are not included in total tax payable.
• For a complete description of federal and provincial tax changes during the 2007 to 2011 period, see the section on “Changes that impact the data”.

Table 7: Number of corporations by sectors (two digits) based on the North American Industry Classification System, 2007 to 2011

Notes:

• All counts are rounded to the nearest ten.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Counts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• On April 1, 2007, the CRA implemented the compliance refund hold legislation, which required it to delay paying rebates and refunds until all required returns have been filed. This legislation put an administrative burden on corporate entities in the municipalities, universities, schools and hospitals (MUSH), non-profit organizations (NPO), federal crown corporations, and Indian band sectors because they are exempt from federal income tax and many of these entities had not filed T2 returns in previous years.

Table 8: Total assets by sectors (two digits) based on the North American Industry Classification System, 2007 to 2011

Notes:

• All amounts are rounded in thousands of dollars.
• The sum of the data may not add to the total due to rounding.
• Data are presented on a tax-year basis.
• Data are as of December 31, 2013.
• Data are subject to change.
• Amounts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• Given their unique filing requirements, amounts relating to certain insurance and non-resident corporations are not included in total assets.
• Amounts for corporations reporting in a functional currency have been converted into Canadian dollars using the exchange rate at the balance due date.
• When a corporation files more than one return in a tax year, adjustments are made to avoid double-counting stock variables such as total assets.
• On April 1, 2007, the CRA implemented the compliance refund hold legislation, which required it to delay paying rebates and refunds until all required returns have been filed. This legislation put an administrative burden on corporate entities in the municipalities, universities, schools and hospitals (MUSH), non-profit organizations (NPO), federal crown corporations, and Indian band sectors because they are exempt from federal income tax and many of these entities had not filed T2 returns in previous years.

Table 9: Number and percentage of taxable versus non-taxable corporations, 2007 to 2011

Notes:

• All counts are rounded to the nearest ten.
• The sum of the data may not add to the total due to rounding.
• Data are as of December 31, 2013.
• Data are subject to change.
• Amounts include all income tax returns that were assessed or reassessed.
• Tax year 2010 is 97% complete and 2011 is 94% complete.
• A corporation is taxable when its taxable income is greater than $10.