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An overview by Borden Ladner Gervais, Taxand Canada
Canada offers significant tax advantages for start-ups structured as Canadian-controlled private corporations (CCPCs), including preferential rates, incentives for R&D, and access to capital gains exemptions. However, limited domestic funding and restrictive tax rules mean many growing companies must rely on foreign investment, which can jeopardise CCPC status and its benefits. While relocating or restructuring (e.g., to the U.S.) may attract capital, it often triggers complex tax consequences, including departure taxes and loss of favourable treatment.
Steve Suarez from our Canadian member firm Borden Ladner Gervais has published an article arguing that without stronger tax support and incentives, Canada risks losing high-growth start-ups, talent, and future tax revenue to more competitive markets.
You can read the full article here.
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