Under the rule of the CAQ government of François Legault, companies are “benefiting” from significantly more favorable tax treatment than in 2017, the last full year of the former Liberal government of Philippe Couillard.
All 85 tax measures intended for Quebec companies will “bring back” to them tax savings of around 6.02 billion dollars in 2023, which is 2.67 billion more than in 2017. We are talking about an increase in tax benefits of around 80%.
To fully appreciate this 80% increase in “CAQ tax generosity” to businesses, know that between 2017 and 2023, taxpayers can save 37.2% more in taxes in Quebec through personal tax measures than in 2017.
In percentage terms, tax relief for companies has grown twice as much as tax relief and financial support for private individuals.
Measures taken by the CAQ government to reduce the tax burden on businesses this year include:
- $1.92 billion in reduced contribution rates to the health fund for SMEs
- Corporate capital gains tax exemption of $1.35 billion
- $648 million in loss carryforwards excluding the $87 million in capital losses
- $489 million in refundable scientific research and experimental development tax credits
- $371 million investment and innovation tax credit
- Repayable loan of $363 million for the production of multimedia titles
- $595 million loan for e-business development
- $171 million tax credit for film productions
Over 10 years
In addition to the 85 tax measures for Quebec-based companies, there are a number of subsidies and loans that the government provides to companies. In his article on Monday, my colleague Sylvain Larocque calculated that this government aid alone represents a $4 billion bill over 10 years.
But when it comes to the tax measures that the Quebec government offers them, the tax savings that companies receive amount to the majestic sum of $ 43.7 billion, that is, ten times more than the “invoice” subsidies granted to companies and Loans.
Tax measures include:
- Tax credits and other incentives: $24.3 billion
- Tax harmonization measures with the federal government: $17.8 billion
- Other tax expenses: $1.6 billion
Among the caquists
The last five years (2019 to 2023) under the Legault government have seen a veritable boom in tax generosity towards Quebec-based companies.
Of the $43.7 billion in tax savings granted to corporations over the past decade, around $26.7 billion (57%) were provided under the CAQ’s rule.
That’s $9.7 billion more than in the five years the previous Liberal government of Philippe Couillard was in power. In the period from 2014 to 2018, companies shared in tax savings amounting to 17 billion.
This shows that François Legault, our former accountant as prime minister, and his two financial strongmen, former businessman Pierre Fitzgibbon (the super minister of economy, innovation and energy) and former banker Eric Girard (the finance minister), did this pursued economic ideas and wanted to make Quebec as attractive as possible for business.
