Economy Profile
Canada
Canada
Doing Business
2020
Page 1
Economy Profile of
Canada
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business
Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits
Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity
Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and
the transparency of tariffs
Registering property
Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit
Movable collateral laws and credit information systems
Protecting minority investors
Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes
Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders
Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts
Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency
Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers
Flexibility in employment regulation and redundancy cost
Canada
Doing Business
2020
Page 2
About Doing Business
The
project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
Doing Business
The
project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business
captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency.
also measures features of employing workers. Although
does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
Doing Business
Doing Business Doing Business
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
Doing Business
In addition,
offers detailed
, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that
has ranked.
Doing Business
subnational studies
Doing Business
The first
study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where
also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
Doing Business
Doing Business
To learn more about
please visit
Doing Business
doingbusiness.org
Canada
Doing Business
2020
Page 3
Ease of Doing Business in
Canada
Region
OECD high income
Income Category
High income
Population
37,058,856
City Covered
Toronto
23
DB RANK DB SCORE
79.6
Rankings on Doing Business topics -
Canada
3
64
124
36
15
7
19
51
100
13
Starting
a
Business
Dealing
with
Construction
Permits
Getting
Electricity
Registering
Property
Getting
Credit
Protecting
Minority
Investors
Paying
Taxes
Trading
across
Borders
Enforcing
Contracts
Resolving
Insolvency
Topic Scores
98.2 73.0 63.8 77.8 85.0 84.0 88.1 88.4 57.1 81.0
(rank)
Starting a Business
3
Score of starting a business (0-100)
98.2
Procedures (number)
2
Time (days)
1.5
Cost (number)
0.3
Paid-in min. capital (% of income per capita)
0.0
(rank)
Dealing with Construction Permits
64
Score of dealing with construction permits (0-100)
73.0
Procedures (number)
12
Time (days)
249
Cost (% of warehouse value)
1.8
Building quality control index (0-15)
14.0
(rank)
Getting Electricity
124
Score of getting electricity (0-100)
63.8
Procedures (number)
7
Time (days)
137
Cost (% of income per capita)
116.9
Reliability of supply and transparency of tariff index (0-8)
6
(rank)
Registering Property
36
Score of registering property (0-100)
77.8
Procedures (number)
5
Time (days)
4
Cost (% of property value)
3.8
Quality of the land administration index (0-30)
21.5
(rank)
Getting Credit
15
Score of getting credit (0-100)
85.0
Strength of legal rights index (0-12)
9
Depth of credit information index (0-8)
8
Credit registry coverage (% of adults)
0.0
Credit bureau coverage (% of adults)
100.0
(rank)
Protecting Minority Investors
7
Score of protecting minority investors (0-100)
84.0
Extent of disclosure index (0-10)
8.0
Extent of director liability index (0-10)
9.0
Ease of shareholder suits index (0-10)
9.0
Extent of shareholder rights index (0-6)
4.0
Extent of ownership and control index (0-7)
6.0
Extent of corporate transparency index (0-7)
6.0
(rank)
Paying Taxes
19
Score of paying taxes (0-100)
88.1
Payments (number per year)
8
Time (hours per year)
131
Total tax and contribution rate (% of profit)
24.5
Postfiling index (0-100)
73.2
(rank)
Trading across Borders
51
Score of trading across borders (0-100)
88.4
Time to export
Documentary compliance (hours)
1
Border compliance (hours)
2
Cost to export
Documentary compliance (USD)
156
Border compliance (USD)
167
Time to export
Documentary compliance (hours)
1
Border compliance (hours)
2
Cost to export
Documentary compliance (USD)
163
Border compliance (USD)
172
(rank)
Enforcing Contracts
100
Score of enforcing contracts (0-100)
57.1
Time (days)
910
Cost (% of claim value)
22.3
Quality of judicial processes index (0-18)
11.0
(rank)
Resolving Insolvency
13
Score of resolving insolvency (0-100)
81.0
Recovery rate (cents on the dollar)
86.7
Time (years)
0.8
Cost (% of estate)
7.0
Outcome (0 as piecemeal sale and 1 as going
concern)
1
Strength of insolvency framework index (0-16)
11.0
Canada
Doing Business
2020
Page 4
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies,
uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
Doing Business
The most recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to legally start and formally operate a company
(number)
Preregistration (for example, name verification or reservation,
notarization)
•
Registration in the economy’s largest business city
•
Postregistration (for example, social security registration,
company seal)
•
Obtaining approval from spouse to start a business or to leave
the home to register the company
•
Obtaining any gender specific document for company
registration and operation or national identification card
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day (2 procedures cannot
start on the same day)
•
Procedures fully completed online are recorded as ½ day
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
No professional fees unless services required by law or
commonly used in practice
•
Paid-in minimum capital (% of income per capita)
•
Funds deposited in a bank or with third party before registration
or up to 3 months after incorporation
Case study assumptions
To make the data comparable across economies, several assumptions about the business and the
procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
The business:
-Is a limited liability company (or its legal equivalent). If there is more than one type of limited
liability company in the economy, the limited liability form most common among domestic firms is
chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the second largest business city.
-Performs general industrial or commercial activities such as the production or sale to the public of
goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
polluting production processes.
-Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
company shares, two owners have 20% of shares each, and two owners have 15% of shares
each.
-Is managed by one local director.
-Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
-Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
-Leases the commercial plant or offices and is not a proprietor of real estate.
-Has an annual lease for the office space equivalent to one income per capita.
-Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
The owners:
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
is no legal age of majority, they are assumed to be 30 years old.
-Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Canada
Doing Business
2020
Page 5
Starting a Business - Canada
Figure – Starting a Business in Canada – Score
Procedures
94.1
Time
99.0
Cost
99.8
Paid-in min. capital
100.0
Figure – Starting a Business in Canada and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
98.2: Canada (Rank: 3)
93.1: France (Rank: 37)
91.6: United States (Rank: 55)
91.3: Regional Average (OECD high income)
86.1: Japan (Rank: 106)
83.7: Germany (Rank: 125)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Standardized Company
Legal form
Private Corporation
Paid-in minimum capital requirement
No minimum
City Covered
Toronto
Indicator
Canada
OECD high income
Best Regulatory Performance
Procedure – Men (number)
2
4.9
1 (2 Economies)
Time – Men (days)
1.5
9.2
0.5 (New Zealand)
Cost – Men (% of income per capita)
0.3
3.0
0.0 (2 Economies)
Procedure – Women (number)
2
4.9
1 (2 Economies)
Time – Women (days)
1.5
9.2
0.5 (New Zealand)
Cost – Women (% of income per capita)
0.3
3.0
0.0 (2 Economies)
Paid-in min. capital (% of income per capita)
0.0
7.6
0.0 (120 Economies)
Canada
Doing Business
2020
Page 6
Figure – Starting a Business in Canada – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Time (days)
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
Canada
Doing Business
2020
Page 7
Details – Starting a Business in Canada – Procedure, Time and Cost
Takes place simultaneously with previous procedure.
No.
Procedures
Time to Complete
Associated Costs
1
File for federal incorporation and provincial registration via the online Electronic Filing
Centre
: Innovation, Science and Economic Development Canada
Agency
To file for incorporation electronically (via Online Filing Centre), the cost is CAD 200. There is no
fee for the provincial registration in Ontario. Electronic filing for incorporating a business is 1 day
and the Business Number is sent to the company within 5 days.
The following documents are required to file for federal incorporation and provincial registration:
1. Form 1: Articles of Incorporation
2. Form 2: Initial Registered Office Address and First Board of Directors
3. Provincial registration form.
While extra-provincial registration in Ontario, Newfoundland and Labrador, Nova Scotia and
Saskatchewan can be done at the same time when the documents for federal incorporation are
filed (via Joint Online Registration System), generally, a federal company that intends to conduct
business in other Canadian province would need to register in that province individually. See, for
example, Part 11 of the Business Corporations Act (British Columbia).
Four incorporation options available:
1. Incorporation of a numbered name corporation, e.g. 1234567 Canada Inc.
If the company is incorporating under a name, rather than a number, a name search report must
be obtained at a cost of CAD 13.8. The search report and articles must be filed within 90 days of
the production of the name search report.
2. Incorporation of a corporation with a name pre-approved by Corporations Canada (a NUANS®
search in electronic format is required to accompany the submission) or
3. Incorporation of a corporation where name approval is to be sought (a NUANS® search in
electronic format is required to accompany the submission);
4. Incorporation of a numbered name corporation that has been pre-reserved.
It is a same day service, if you submit the forms online prior to 1PM, the incorporation certificate
should be provided on the same day by 5PM.
Once a corporation is created, the corporation's information is transmitted to the Canada Revenue
Agency which then transmits back the Business Number with the corporate income tax account
number. This number can be accessed within a day from the online database of federal
corporations on Industry Canada's website.
1 day
CAD 200
2
Register for GST/HST
: Canada Revenue Agency
Agency
All private corporations with turnover of over 30,000 CAD of taxable supplies per quarter must
register for the VAT –referred to as Goods and Services Tax (GST)/Harmonized Sales Tax (HST) –
with Canada Revenue Agency (CRA). The company must register within 29 days after a sale is
made other than as a small supplier. In order to register with CRA, corporations must provide the
Name, phone number, and the Social Insurance Number (SIN) of at least one owner/director of
the business and the Business Address and Major Business Activity (MBA) when registering.
Registration can be done online at http://www.cra-arc.gc.ca/menu-eng.html - at no cost.
less than one day (online
procedure)
no charge
Canada
Doing Business
2020
Page 8
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019.
See the methodology for more information
What the indicators measure
Procedures to legally build a warehouse (number)
Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
•
Submitting all required notifications and receiving all necessary
inspections
•
Obtaining utility connections for water and sewerage
•
Registering and selling the warehouse after its completion
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
Building quality control index (0-15)
Quality of building regulations (0-2)
•
Quality control before construction (0-1)
•
Quality control during construction (0-3)
•
Quality control after construction (0-3)
•
Liability and insurance regimes (0-2)
•
Professional certifications (0-4)
•
Case study assumptions
To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
The construction company (BuildCo):
- Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
business city. For 11 economies the data are also collected for the second largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
completion.
The warehouse:
- Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a licensed architect. If
preparation of the plans requires such steps as obtaining further documentation or getting prior
approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
requirements).
The water and sewerage connections:
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Canada
Doing Business
2020
Page 9
Dealing with Construction Permits - Canada
Figure – Dealing with Construction Permits in Canada – Score
Procedures
72.0
Time
35.7
Cost
90.9
Building quality control index
93.3
Figure – Dealing with Construction Permits in Canada and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
83.1: Japan (Rank: 18)
80.0: United States (Rank: 24)
78.2: Germany (Rank: 30)
75.6: Regional Average (OECD high income)
74.3: France (Rank: 52)
73.0: Canada (Rank: 64)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Standardized Warehouse
Estimated value of warehouse
CAD 2,951,819.90
City Covered
Toronto
Indicator
Canada
OECD high income
Best Regulatory Performance
Procedures (number)
12
12.7
None in 2018/19
Time (days)
249
152.3
None in 2018/19
Cost (% of warehouse value)
1.8
1.5
None in 2018/19
Building quality control index (0-15)
14.0
11.6
15.0 (6 Economies)
Canada
Doing Business
2020
Page 10
Figure – Dealing with Construction Permits in Canada – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 * 2 3 4 5 6 7 8 9 10 11 12
0
50
100
150
200
Time (days)
0
0.2
0.4
0.6
0.8
1
1.2
Cost (% of warehouse value)
Time (days) Cost (% of warehouse value)
Canada
Doing Business
2020
Page 11
Figure – Dealing with Construction Permits in Canada and comparator economies – Measure of Quality
Canada France Germany Japan United
States
OECD
high
income
0
2
4
6
8
10
12
14
16
Index score
14.0
13.0
9.5
13.0
12.4
11.6
Details – Dealing with Construction Permits in Canada – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Undergo preliminary project review with the Municipal Authority
: Toronto Municipal Authority
Agency
The Preliminary Project Review is a review of a proposal to determine its compliance with the
city’s zoning bylaw.
30 days
CAD 547
2
Apply and obtain a zoning certificate
: Chief Building Controller
Agency
Under Chapter 363-3.1 of the Toronto Municipal Code, a zoning certificate is mandatory prior to
requesting a building permit. The zoning certificate costs 25% of the total prescribed building
permit fee. Once the application has been received and payment is made, the application will be
circulated to city divisions and external agencies for detailed technical review and comments.
Within 30 days of payment of the application fee, a written notice will be provided to the applicant
with regards to the completeness or incompleteness of the application, and the applicant will be
assigned a STAR stream and application file number.
30 days
CAD 3,716
3
Obtain site plan approval from the Municipal Authority
: Toronto Municipal Authority
Agency
A pre-consultation with City Staff (Planning Department) is advised. This step will help save time
later on in the process. Several documents are needed in this application, including Site Plans,
Floor Plans, Elevations, and SWM Plan
Site Plan Control is legislated under Section 41 the Ontario Planning Act and allows the City to
review and control important aspects of a proposed project, for example, the site of buildings,
landscaping, pedestrian access, parking, exterior design and appearance, storm water
management and waste disposal.
The municipality forwards the site plan to the fire department for approval. On some occasions, a
City councilor will get involved in the review of the site plan and community consultation may be
requested by the planner. The process can take anywhere from 3 month to 9 months depending
on the complexity of the site plan, political interests, and on how often the applicant needs to
revise the plan to meet the City's desired revisions. Once approved, the City often has conditions
that need to be met before building permit can be obtained.
180 days
CAD 31,042
4
Obtain building permit
: Toronto Municipal Authority
Agency
The building permit is issued by the City of Toronto. BuildCo must post the building permit on the
construction site. In certain cases, the process of reviewing the building permit application can be
started by the City before the site plan is approved. The City can issue a temporary building permit
at that time. However, the final building permit cannot be issued before the site approval is
granted. The building permit and the site plan approval are granted by different municipal
departments. The site plan approval entails verifying planning compliance with the city bylaws (for
instance, if enough parking spaces are included in the plans). In contrast, the building permit
application review analyzes technical issues.
The Ontario Building Code requires that on top of including all design plans and plot information,
one must include a form ensuring energy efficiency, completed by the architect, mechanical
designer, and electrical designer.
This price includes the cost of the application intake, review, and inspection activities.
15 days
CAD 11,149
5
Request and receive foundation work inspection
: Toronto Municipal Authority
Agency
Building inspectors review projects during key stages of construction to ensure that work complies
with the building code and approved plans. Inspectors may visit several times, depending on the
project; they must be able to see the part of the work under inspection. Inspectors require a
minimum of 48 hours notice to book an inspection.
1 day
no charge
Canada
Doing Business
2020
Page 12
Takes place simultaneously with previous procedure.
6
Request and receive frame inspection
: Toronto Municipal Authority
Agency
To conduct a frame inspection, building inspectors review projects during key stages of
construction. This is required to ensure that the work complies with the building code and
approved plans. Inspectors may visit several times, depending on the project; they must be able to
see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to
book an inspection.
1 day
no charge
7
Request and receive drainage inspection
: Toronto Municipal Authority
Agency
Building inspectors review projects during key stages of construction. This is required to ensure
that work complies with the building code and approved plans. Inspectors may visit several times,
depending on the project; they must be able to see the part of the work under inspection.
Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon
completion, before back filling and ready for testing.
1 day
no charge
8
Request and receive sanitary inspection
: Toronto Municipal Authority
Agency
Building inspectors review projects during key stages of construction. This is required to ensure
that work complies with the building code and approved plans. Inspectors may visit several times,
depending on the project; they must be able to see the part of the work under inspection.
Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon
completion, before back filling and ready for testing.
1 day
no charge
9
Request and receive plumbing inspection
: Toronto Municipal Authority
Agency
Building inspectors review projects during key stages of construction. This is required to ensure
that work complies with the building code and approved plans. Inspectors may visit several times,
depending on the project; they must be able to see the part of the work under inspection.
Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon
completion, before back filling and ready for testing.
1 day
no charge
10
Obtain water and sewer service connections
: Toronto Water: Water Renewal Division
Agency
This procedure can only be completed after the site plan approval has been granted. The City has
implemented a process in 2008 by which the connection work is carried out by any one of 8 listed
contractors. Once the application has been submitted, the City sends out a Request for
Quotations (RFQ) from the contractors. The desired contractor is chosen based on the list of
quotes and a deposit is collected.
Toronto Water estimates the costs by tendering the job to a roster of approved City of Toronto
contractors. The costs are later communicated to the applicant, who is required to pay all fees in
advance of construction. Once the work is complete, the actual costs will be determined.
14 days
CAD 7,500
11
Request and receive fire department inspection
: Fire Department, Toronto Municipal Authority
Agency
The fire department inspector conducts this inspection.
3 days
no charge
12
Receive final inspection and occupancy permit
: Toronto Municipal Authority
Agency
The building inspector conducts the final inspection.
1 day
no charge
Canada
Doing Business
2020
Page 13
Details – Dealing with Construction Permits in Canada – Measure of Quality
Answer
Score
Building quality control index (0-15)
14.0
Quality of building regulations index (0-2)
2.0
How accessible are building laws and regulations in your economy? (0-1)
Available online; Free
of charge.
1.0
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any
accessible website, brochure or pamphlet? (0-1)
List of required
documents; Fees to
be paid; Required
preapprovals.
1.0
Quality control before construction index (0-1)
1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing
building regulations? (0-1)
Licensed architect;
Licensed engineer.
1.0
Quality control during construction index (0-3)
2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2)
Inspections at various
phases.
1.0
Do legally mandated inspections occur in practice during construction? (0-1)
Mandatory
inspections are
always done in
practice.
1.0
Quality control after construction index (0-3)
3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved
plans and regulations? (0-2)
Yes, final inspection
is done by
government agency.
2.0
Do legally mandated final inspections occur in practice? (0-1)
Final inspection
always occurs in
practice.
1.0
Liability and insurance regimes index (0-2)
2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use
(Latent Defect Liability or Decennial Liability)? (0-1)
Architect or engineer;
Construction
company; Owner or
investor.
1.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)
Architect or engineer;
Construction
company; Owner or
investor; Insurance is
commonly taken in
practice.
1.0
Professional certifications index (0-4)
4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans
or drawings are in compliance with existing building regulations? (0-2)
Minimum number of
years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer; Passing a
certification exam.
2.0
What are the qualification requirements for the professional who supervises the construction on the ground? (0-
2)
Minimum number of
years of experience;
University degree in
engineering,
construction or
construction
management; Being
a registered architect
or engineer; Passing
a certification exam.
2.0
Canada
Doing Business
2020
Page 14
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to obtain an electricity connection (number)
Submitting all relevant documents and obtaining all necessary
clearances and permits
•
Completing all required notifications and receiving all necessary
inspections
•
Obtaining external installation works and possibly purchasing
material for these works
•
Concluding any necessary supply contract and obtaining final
supply
•
Time required to complete each procedure (calendar days)
Is at least 1 calendar day
•
Each procedure starts on a separate day
•
Does not include time spent gathering information
•
Reflects the time spent in practice, with little follow-up and no
prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
Value added tax excluded
•
The reliability of supply and transparency of tariffs index (0-8)
Duration and frequency of power outages (0–3)
•
Tools to monitor power outages (0–1)
•
Tools to restore power supply (0–1)
•
Regulatory monitoring of utilities’ performance (0–1)
•
Financial deterrents limiting outages (0–1)
•
Transparency and accessibility of tariffs (0–1)
•
Price of electricity (cents per kilowatt-hour)*
Price based on monthly bill for commercial warehouse in case
study
•
*Note:
measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Doing Business
Case study assumptions
To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
The warehouse:
- Is owned by a local entrepreneur and is used for storage of goods.
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
the second largest business city.
- Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
The electricity connection:
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
network and is either overhead or underground, whichever is more common in the area where the
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
owners’ private property because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has already been
completed up to and including the customer’s service panel or switchboard and the meter base.
The monthly consumption:
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
Canada
Doing Business
2020
Page 15
Getting Electricity - Canada
Figure – Getting Electricity in Canada – Score
Procedures
33.3
Time
48.3
Cost
98.6
Reliability of supply and transparency of
tariff index
75.0
Figure – Getting Electricity in Canada and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
98.8: Germany (Rank: 5)
93.2: Japan (Rank: 14)
92.0: France (Rank: 17)
85.9: Regional Average (OECD high income)
82.2: United States (Rank: 64)
63.8: Canada (Rank: 124)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Canada – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3 4 * 5 * 6 7
0
20
40
60
80
100
120
Time (days)
0
10
20
30
40
50
60
70
80
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
Standardized Connection
Name of utility
Toronto Hydro
Price of electricity (US cents per kWh)
12.3
City Covered
Toronto
Indicator
Canada
OECD high income
Best Regulatory Performance
Procedures (number)
7
4.4
3 (28 Economies)
Time (days)
137
74.8
18 (3 Economies)
Cost (% of income per capita)
116.9
61.0
0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8)
6
7.4
8 (26 Economies)
Canada
Doing Business
2020
Page 16
reflected here, see the summary below.
Figure – Getting Electricity in Canada and comparator economies – Measure of Quality
Canada France Germany Japan United
States
OECD
high
income
0
1
2
3
4
5
6
7
8
9
Index score
6
8 8 8
7
7.4
Canada
Doing Business
2020
Page 17
Details – Getting Electricity in Canada – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Submit application to Toronto Hydro and await comments on proposal
: Toronto Hydro
Agency
An application for an electrical connection can be submitted through a written request by letter or
email.
Required documents:
(1). Architectural, electrical, mechanical drawings (2). Survey plan and site plan (3).Locations of
other services, gas, telephone, water, cable (4) required in-service date, proposed service
entrance equipment, rated capacity and voltage rating, metering requirements and proposed load.
At this point Toronto Hydro requests for a preliminary design deposit based on ($10,000 per MVA
of load) which is put towards the cost of the job once it proceeds.
15 calendar days
CAD 1,400
2
Await completion and approval of project design
: Contractor
Agency
The customer's electrical consultant prepares the design of service entrance requirement. The
electrical design has to be approved by the Electrical Safety Authority. Usually the approval is
obtained by the electrical consultant/hired electrical design firm.
13 calendar days
CAD 2,125
3
Submit final design to Toronto Hydro and await offer to connect
: Toronto Hydro
Agency
The customer’s private consultants will provide Toronto Hydro with the final design drawings and
requirements. Toronto Hydro prepares an Offer to Connect, which includes the connection
charges and schedule of work. During this time Toronto Hydro will check for feeder capacity,
prepares the design scope and cost, and present the customer with an offer to connect.
The OTC outlines the cost of the project and the responsibilities of each party.
After the Offer to Connect is issued, the applicant must sign and comply with all the conditions in
the OTC before any further work can be completed, which includes payments.
An external inspection is performed by the utility to prepare the offer to connect and the technical
study. No one from the applicant's party is present during the inspection. Toronto Hydro submits
an Offer to Connect to the customer within 60 days of the request (all information required from
the customer must be submitted).
22 calendar days
CAD 0
4
Await completion of external works by Toronto Hydro
: Toronto Hydro
Agency
After the estimate has been issued a part of the external connection works are carried out by
Toronto Hydro. The works will most likely include the following: (a) Extend the overhead primary
feeder cables down the street by installing a new pole line up to the point that is in line with the
customer's building. (b) From an overhead feeder install a primary riser switch and fusing at the
pole. (c) Construct underground ducts from the base of the pole up to the customer’s property line.
(d) Install underground primary cable from the riser switch to the padmounted structure. (e) Install
padmounted transformer. (f) Make primary and secondary connection at padmounted transformer.
The connection fees paid to Toronto Hydro include: engineering design, labor, material,
equipment, overhead costs (including administration and inspection). The utility will obtain an
excavation permit for the part of the work which is their responsibility.
Toronto Hydro performs an economic evaluation on the "expansion" portion of the connection and
the forecasted revenue of connecting this customer. In this case, the customer will have to provide
a security deposit known as an Expansion Deposit. This expansion deposit will be returned to the
customer, if the customer reaches its demand of 140 kVA within the first five years (i.e. after each
year a portion of the expansion deposit will be given back relative to the demand realized). For the
case study, the customer will receive the full amount back after the first year of operation.
80 calendar days
CAD 44,363
5
Await completion of external works by contractor
: Contractor
Agency
While Toronto Hydro finishes its part of the connection works an electrical contractor proceeds
with his part of the works. The contractor's work includes: a) Install padmounted structure on
customer property. (b) Construct underground ducts from padmounted structure to join ducts
provided by Toronto Hydro at property line and construct ducts underground from padmounted
structure to Customer building. (c) Install secondary cable from padmounted transformer to
building.
14 calendar days
CAD 20,500
6
Await and receive inspection of internal wiring
: Electrical Safety Authority
Agency
An inspection of internal wiring is required and can be performed by the Electrical Safety Authority
at any time during rough in and final stages of the process so there are at least two inspections of
the internal wiring. The inspection would be performed by the Electrical Safety Authority, who in
turn would submit a "Turn On Notice" to Toronto Hydro. This allows Toronto Hydro to provide the
final connection of power to the facility in question.
1 calendar day
CAD 650
7
Await final inspection, meter installation and final connection
: Toronto Hydro
Agency
Once Toronto Hydro receives the connection authorization, the final inspection is performed during
meter installation and the final connection can be made. There is no separate supply contract to
be signed. The supply contract is signed at the same time as the connection contract in one
contract.
7 calendar days
CAD 0
Canada
Doing Business
2020
Page 18
Takes place simultaneously with previous procedure.
Canada
Doing Business
2020
Page 19
Details – Getting Electricity in Canada – Measure of Quality
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Answer
Reliability of supply and transparency of tariff index (0-8)
6
Total duration and frequency of outages per customer a year (0-3)
2
System average interruption duration index (SAIDI)
1.0
System average interruption frequency index (SAIFI)
1.5
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI
1.0
Mechanisms for monitoring outages (0-1)
1
Does the distribution utility use automated tools to monitor outages?
Yes
Mechanisms for restoring service (0-1)
1
Does the distribution utility use automated tools to restore service?
Yes
Regulatory monitoring (0-1)
1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply?
Yes
Financial deterrents aimed at limiting outages (0-1)
0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap?
No
Communication of tariffs and tariff changes (0-1)
1
Are effective tariffs available online?
Yes
Link to the website, if available online
https://www.torontohydro.
com/for-business/rates
Are customers notified of a change in tariff ahead of the billing cycle?
Yes
Canada
Doing Business
2020
Page 20
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to legally transfer title on immovable property
(number)
Preregistration procedures (for example, checking for liens,
notarizing sales agreement, paying property transfer taxes)
•
Registration procedures in the economy's largest business city.
•
Postregistration procedures (for example, filling title with
municipality)
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day - though procedures
that can be fully completed online are an exception to this rule
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of property
value)
Official costs only (such as administrative fees, duties and
taxes).
•
Value Added Tax, Capital Gains Tax and illicit payments are
excluded
•
Quality of land administration index (0-30)
Reliability of infrastructure index (0-8)
•
Transparency of information index (0–6)
•
Geographic coverage index (0–8)
•
Land dispute resolution index (0–8)
•
Equal access to property rights index (-2–0)
•
Case study assumptions
To make the data comparable across economies, several assumptions about the parties to the
transaction, the property and the procedures are used.
The parties (buyer and seller):
- Are limited liability companies (or the legal equivalent).
- Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
area of the economy’s largest business city. For 11 economies the data are also collected for the
second largest business city.
- Are 100% domestically and privately owned.
- Perform general commercial activities.
The property (fully owned by the seller):
- Has a value of 50 times income per capita, which equals the sale price.
- Is fully owned by the seller.
- Has no mortgages attached and has been under the same ownership for the past 10 years.
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
- Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
building codes and legal requirements. The property, consisting of land and building, will be
transferred in its entirety.
- Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Canada
Doing Business
2020
Page 21
Registering Property - Canada
Figure – Registering Property in Canada – Score
Procedures
66.7
Time
98.6
Cost
74.4
Quality of the land administration index
71.7
Figure – Registering Property in Canada and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
77.8: Canada (Rank: 36)
77.0: Regional Average (OECD high income)
76.9: United States (Rank: 39)
75.6: Japan (Rank: 43)
66.6: Germany (Rank: 76)
63.3: France (Rank: 99)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Indicator
Canada
OECD high income
Best Regulatory Performance
Procedures (number)
5
4.7
1 (5 Economies)
Time (days)
4
23.6
1 (2 Economies)
Cost (% of property value)
3.8
4.2
0.0 (Saudi Arabia)
Quality of the land administration index (0-30)
21.5
23.2
None in 2018/19
Canada
Doing Business
2020
Page 22
Figure – Registering Property in Canada – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 * 2 * 3 * 4 5
0
0.5
1
1.5
2
2.5
3
3.5
4
Time (days)
0
0.5
1
1.5
2
2.5
3
3.5
4
Cost (% of property value)
Time (days) Cost (% of property value)
Canada
Doing Business
2020
Page 23
Figure – Registering Property in Canada and comparator economies – Measure of Quality
Canada France Germany Japan United
States
OECD
high
income
0
5
10
15
20
25
30
Index score
21.5
24.0
23.0
25.5
17.6
23.2
Details – Registering Property in Canada – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Obtain tax clearance and utility certificate from the Municipality
: Municipality
Agency
The parties must show reasonable evidence to the title insurance company that the property is
clear of tax obligations. A written tax clearance certificate should be obtained from the Municipality.
It can be obtained online, and the applicant will receive the certificate by email after two business
days. The certificate will need to show the latest tax receipts including the amount of current year
taxes and whether all taxes are paid to date. Verbal confirmation that real property taxes have
been paid will also suffice. To confirm verbally that the real property taxes have been paid, a Tax
Certificate must be requested and paid for, and in most cases, it commonly takes more than 1
business day to process. Real property taxes are required to be paid up to the date of the transfer
of the property.
At the same time, a utility clearance certificate is obtained online to confirm balance owing on a
utility account.
2 days
CAD 121.46; (CAD 68.65
Tax clearance certificate
CAD 52.81 Utility
clearance certificate)
2
Obtain a copy of parcel register and search for writs
: Land registry
Agency
A copy of Parcel Register and search for Writs filed against the seller are obtained online through
service providers.
Less than one day,
online
CAD 41.13; (CAD 30.05
(Parcel Register)
CAD 11.80 (Search for
Writs))
3
Obtain a status certificate for the selling corporation
: Provincial government
Agency
The buyer's solicitor obtains a Status Certificate from the provincial government or the federal
government.
1 day
CAD 40; (CAD 26 (the fee
of status certificate in case
of the province of Ontario)
CAD 14 (the service
provider fee, the fee differs
by providers))
4
Conduct title search
: Teraview
Agency
Depending on whether the property is located in a jurisdiction governed by the Land Titles Act or
the Registry Act or by electronic registration, in the absence of title insurance, a simple title search
will cost CAD 2,000, and more difficult searches can cost CAD 10,000 or more.
In terms of additional investigations: (a) an environmental report would cost between CAD 1,500
to CAD 3,000; (b) a building inspection would take 10 to 21 days and would cost CAD 2,500 to
CAD 10,000; and (c) a zoning review by a planning consultant would take between 1 day and 14
days and would cost between CAD 2,000 and CAD 10,000.
Title insurance can be obtained for CAD 0.75/CAD 1000 of the purchase price if the purchase
price is CAD 2,000,000 or more and for CAD 0.80/CAD 1000 of the purchase price if the purchase
price is less than CAD 2,000,000.
2 days
CAD 2,000
Canada
Doing Business
2020
Page 24
Takes place simultaneously with previous procedure.
5
Registration of the transfer of title
: Purchaser's solicitor or Land registry
Agency
After the agreement has been prepared and the transaction closed, the parties’ solicitors will
complete the registration for transfer of title. Electronic registration governs more than 90% of
properties in Toronto. In the electronic registration regime, the transfer is registered electronically
by an authorized licensee at the offices of the purchaser’s solicitor. Only authorized licensees
have access to the electronic registration system for security reasons.
The payment of registration fee and the Land Transfer Tax is done electronically if it is in the
electronic regime. Solicitor’s fees for their representation in the whole process are estimated at
CAD 6,000 (CAD 3,500 for the buyer’s solicitor and CAD 2,500 for the seller’s solicitor).
Notification of change of ownership to assessment department and utility companies can be done
the same day immediately after closing but should be arranged before closing to ensure continuity
of services.
Less than one day,
online
CAD 111,178.83; (CAD
76.55 (electronic
registration fee) +
Provincial Land Transfer
Tax + Municipal Land
Transfer Tax + CAD 79.5
(Municipal administrative
fee)
Provincial Land Transfer
Tax is calculated through a
progressive scale:
For a property valued
under CAD 55,000: 0.5%
From CAD 55,000, up to
and including CAD
250,000: 1.0%
From CAD 250,000, up to
and including CAD
400,000: 1.5%
Over CAD 400,000: 2.0%
Municipal Land Transfer
Tax for the City of Toronto
is calculated through the
following scheme plus an
administration fee of CAD
79.05
For a property valued
under CAD 55,000: 0.5%
From CAD 55,000, up to
and including CAD
250,000: 1.0%
From CAD 250,000, up to
and including CAD
400,000: 1.5%
Over CAD 400,000: 2.0%)
Canada
Doing Business
2020
Page 25
Details – Registering Property in Canada – Measure of Quality
Answer
Score
Quality of the land administration index (0-30)
21.5
Reliability of infrastructure index (0-8)
7.0
Type of land registration system in the economy:
Title Registration
System
What is the institution in charge of immovable property registration?
Toronto Land
Registry Office
In what format are past and newly issued land records kept at the immovable property registry of the largest
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Computer/Fully digital
2.0
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages,
restrictions and the like)?
Yes
1.0
Institution in charge of the plans showing legal boundaries in the largest business city:
Toronto Land
Registry Office
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Computer/Scanned
1.0
Is there an electronic database for recording boundaries, checking plans and providing cadastral information
(geographic information system)?
Yes
1.0
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency
kept in a single database, in different but linked databases or in separate databases?
Different databases
but linked
1.0
Do the immovable property registration agency and cadastral or mapping agency use the same identification
number for properties?
Yes
1.0
Transparency of information index (0–6)
3.0
Who is able to obtain information on land ownership at the agency in charge of immovable property registration
in the largest business city?
Freely accessible by
anyone
1.0
Is the list of documents that are required to complete any type of property transaction made publicly available–
and if so, how?
Yes, online
0.5
Link for online access:
https://www.teraview.
ca/wp-
content/uploads/2017
/12/ERPG-V12-2017-
Final-English-1.pdf
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable
property registration in the largest business city made publicly available–and if so, how?
Yes, online
0.5
Link for online access:
https://www.ontario.c
a/land-
registration/land-
services-fee-
changes-2018
https://www.teraview.
ca/en/mltt-calculator/
https://www.teraview.
ca/en/pltt-calculator/
https://www.teraview.
ca/en/teraview-
pricing/
Does the agency in charge of immovable property registration agency formally commit to deliver a legally
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?
No
0.0
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency
in charge of immovable property registration?
No
0.0
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property
registration agency?
No
0.0
Canada
Doing Business
2020
Page 26
Number of property transfers in the largest business city in 2018:
Who is able to consult maps of land plots in the largest business city?
Freely accessible by
anyone
0.5
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?
Yes, online
0.5
Link for online access:
http://www.teraview.c
a/en/teraview-pricing/
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and
if so, how does it communicate the service standard?
No
0.0
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the
cadastral or mapping agency?
No
0.0
Contact information:
Geographic coverage index (0–8)
6.0
Are all privately held land plots in the largest business city formally registered at the immovable property
registry?
Yes
2.0
Are all privately held land plots in the economy formally registered at the immovable property registry?
Yes
2.0
Are all privately held land plots in the largest business city mapped?
Yes
2.0
Are all privately held land plots in the economy mapped?
No
0.0
Land dispute resolution index (0–8)
5.5
Does the law require that all property sale transactions be registered at the immovable property registry to make
them opposable to third parties?
Yes
1.5
Legal basis:
The Land Titles Act
Is the system of immovable property registration subject to a state or private guarantee?
Yes
0.5
Type of guarantee:
Private guarantee
(Title insurance, etc.)
Legal basis:
The Land Titles Act
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
Yes
0.5
Legal basis:
By the Government of
Ontario
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g.,
checking the compliance of contracts with requirements of the law)?
Yes
0.5
If yes, who is responsible for checking the legality of the documents?
Registrar; Notary;
Does the legal system require verification of the identity of the parties to a property transaction?
Yes
0.5
If yes, who is responsible for verifying the identity of the parties?
Registrar; Notary;
Lawyer;
Is there a national database to verify the accuracy of government issued identity documents?
No
0.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located
in the largest business city?
Superior Court of
Justice
How long does it take on average to obtain a decision from the first-instance court for such a case (without
appeal)?
Between 1 and 2
years
2.0
Are there publicly available statistics on the number of land disputes at the economy level in the first instance
court?
No
0.0
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0)
0.0
Do unmarried men and unmarried women have equal ownership rights to property?
Yes
Canada
Doing Business
2020
Page 27
Do married men and married women have equal ownership rights to property?
Yes
0.0
Canada
Doing Business
2020
Page 28
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Strength of legal rights index (0–12)
Rights of borrowers and lenders through collateral laws (0-10)
•
Protection of secured creditors’ rights through bankruptcy laws
(0-2)
•
Depth of credit information index (0–8)
Scope and accessibility of credit information distributed by
credit bureaus and credit registries (0-8)
•
Credit bureau coverage (% of adults)
Number of individuals and firms listed in largest credit bureau
as a percentage of adult population
•
Credit registry coverage (% of adults)
Number of individuals and firms listed in credit registry as a
percentage of adult population
•
Case study assumptions
assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
information index measures rules and practices affecting the coverage, scope and accessibility of
credit information available through a credit registry or a credit bureau. The strength of legal rights
index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
secured transactions system exists. Then two case scenarios, case A and case B, are used to
determine how a nonpossessory security interest is created, publicized and enforced according to
the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
secured lender, BizBank.
Doing Business
In some economies the legal framework for secured transactions will allow only case A or case B
(not both) to apply. Both cases examine the same set of legal provisions relating to the use of
movable collateral.
Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest business city. For
11 economies the data are also collected for the second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants
BizBank a nonpossessory security interest in one category of movable assets, for example, its
machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In
economies where the law does not allow nonpossessory security interests in movable property,
ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for
nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any
charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of
ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.
Canada
Doing Business
2020
Page 29
Getting Credit - Canada
Figure – Getting Credit in Canada – Score
Score - Getting Credit
85.0
Figure – Getting Credit in Canada and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
95.0: United States (Rank: 4)
85.0: Canada (Rank: 15)
70.0: Germany (Rank: 48)
64.3: Regional Average (OECD high income)
55.0: Japan (Rank: 94)
50.0: France (Rank: 104)
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Indicator
Canada
OECD high income
Best Regulatory Performance
Strength of legal rights index (0-12)
9
6.1
12 (5 Economies)
Depth of credit information index (0-8)
8
6.8
8 (53 Economies)
Credit registry coverage (% of adults)
0.0
24.4
100.0 (2 Economies)
Credit bureau coverage (% of adults)
100.0
66.7
100.0 (14 Economies)
Canada
Doing Business
2020
Page 30
Figure – Legal Rights in Canada and comparator economies
Canada France Germany Japan United
States
OECD
high
income
0
2
4
6
8
10
12
Index Score
9
4
6
5
11
6.1
Canada
Doing Business
2020
Page 31
Details – Legal Rights in Canada
Strength of legal rights index (0-12)
9
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents
to security interests in movable assets exist in the economy?
Yes
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description
of collateral?
Yes
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of
collateral?
Yes
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the
original assets?
Yes
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties;
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Yes
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an
electronic database indexed by debtor's name?
No
Does a notice-based collateral registry exist in which all functional equivalents can be registered?
Yes
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third
party?
Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure?
No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated?
No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Yes
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Yes
Figure – Credit Information in Canada and comparator economies
Canada France Germany Japan United
States
OECD
high
income
0
1
2
3
4
5
6
7
8
9
Index Score
8
6
8
6
8
6.8
Canada
Doing Business
2020
Page 32
Details – Credit Information in Canada
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Depth of credit information index (0-8)
Credit bureau
Credit registry
Score
Are data on both firms and individuals distributed?
Yes
No
1
Are both positive and negative credit data distributed?
Yes
No
1
Are data from retailers or utility companies - in addition to data from banks and
financial institutions - distributed?
Yes
No
1
Are at least 2 years of historical data distributed? (Credit bureaus and registries
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Yes
No
1
Are data on loan amounts below 1% of income per capita distributed?
Yes
No
1
By law, do borrowers have the right to access their data in the credit bureau or
credit registry?
Yes
No
1
Can banks and financial institutions access borrowers’ credit information online
(for example, through an online platform, a system-to-system connection or
both)?
Yes
No
1
Are bureau or registry credit scores offered as a value-added service to help
banks and financial institutions assess the creditworthiness of borrowers?
Yes
No
1
Total Score ("yes" to either public bureau or private registry)
8
Coverage
Credit bureau
Credit registry
Number of individuals
31,346,536
0
Number of firms
2,174,280
0
Total
33,520,816
0
Percentage of adult population
100.0
0.0
Canada
Doing Business
2020
Page 33
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019.
.
See the methodology for more information
What the indicators measure
: Disclosure, review, and
approval requirements for related-party transactions
•
Extent of disclosure index (0–10)
: Ability of minority
shareholders to sue and hold interested directors liable for
prejudicial related-party transactions; Available legal
remedies (damages, disgorgement of profits, disqualification
from managerial position(s) for one year or more, rescission of
the transaction)
•
Extent of director liability index (0–10)
: Access to internal
corporate documents; Evidence obtainable during trial and
allocation of legal expenses
•
Ease of shareholder suits index (0–10)
Sum of
the extent of disclosure, extent of director liability and ease of
shareholder suits indices
•
Extent of conflict of interest regulation index (0-30):
: Shareholders’ rights
and role in major corporate decisions
•
Extent of shareholder rights index (0-6)
: Governance
safeguards protecting shareholders from undue board control
and entrenchment
•
Extent of ownership and control index (0-7)
: Corporate
transparency on ownership stakes, compensation, audits and
financial prospects
•
Extent of corporate transparency index (0-7)
: Sum
of the
extent of shareholders rights, extent of ownership and control
and extent of corporate transparency indices
•
Extent of shareholder governance index (0–20)
: Sum
of the extent of conflict of interest regulation and extent of
shareholder governance indices
•
Strength of minority investor protection index (0–50)
Case study assumptions
To make the data comparable across economies, a case study uses several assumptions about
the business and the transaction.
- Is a publicly traded corporation listed on the economy’s most important stock exchange.
- Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
Buyer where permitted, even if this is not specifically required by law.
- Has a supervisory board in economies with a two-tier board system on which Mr. James
appointed 60% of the shareholder-elected members.
- Has not adopted bylaws or articles of association that go beyond the minimum requirements.
Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
The business (Buyer):
- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
Buyer’s five-member board.
- Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
- Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
Buyer’s assets and is higher than the market value.
- The proposed transaction is part of the company’s principal activity and is not outside the
authority of the company.
- Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
made—that is, the transaction was not entered into fraudulently.
- The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
directors that approved the transaction.
The transaction involves the following details:
Canada
Doing Business
2020
Page 34
Protecting Minority Investors - Canada
Figure – Protecting Minority in Canada – Score
Score - Protecting Minority Investors
84.0
Figure – Protecting Minority Investors in Canada and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
84.0: Canada (Rank: 7)
71.6: United States (Rank: 36)
68.2: Regional Average (OECD high income)
68.0: France (Rank: 45)
64.0: Japan (Rank: 57)
62.0: Germany (Rank: 61)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Stock exchange information
Stock exchange
Toronto Stock Exchange
Stock exchange URL
http://www.tsx.com
Listed firms with equity securities
3850
City Covered
Toronto
Indicator
Canada
OECD high income
Best Regulatory Performance
Extent of disclosure index (0-10)
8.0
6.5
10 (13 Economies)
Extent of director liability index (0-10)
9.0
5.3
10 (3 Economies)
Ease of shareholder suits index (0-10)
9.0
7.3
10 (Djibouti)
Extent of shareholder rights index (0-6)
4.0
4.7
6 (19 Economies)
Extent of ownership and control index (0-7)
6.0
4.5
7 (9 Economies)
Extent of corporate transparency index (0-7)
6.0
5.7
7 (13 Economies)
Canada
Doing Business
2020
Page 35
Figure – Protecting Minority Investors in Canada and comparator economies – Measure of Quality
Canada
France
Germany
Japan
United States
OECD high income
0 5 10 15 20 25 30 35 40 45
Sub-Indicator Score
6 9 8 6 4 9
7 3 8 6 4 6
6 5 5 5 5 5
5 6 7 2 4 8
5 9 7 3 2 9
5.6 5.6 6.6 4.3 4.5 7.4
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
Canada
Doing Business
2020
Page 36
Details – Protecting Minority Investors in Canada – Measure of Quality
Answer
Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10)
8.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3)
Board of directors
excluding interested
members
2.0
Must an external body review the terms of the transaction before it takes place? (0-1)
No
0.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2)
Full disclosure of all
material facts
2.0
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2)
Disclosure on the
transaction and on
the conflict of interest
2.0
Must Buyer immediately disclose the transaction to the public? (0-2)
Disclosure on the
transaction and on
the conflict of interest
2.0
Extent of director liability index (0-10)
9.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to
Buyer? (0-1)
Yes
1.0
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)
Liable if negligent
1.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2)
Liable if unfair or
prejudicial
2.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1)
Yes
1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1)
Yes
1.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1)
Yes
1.0
Can a court void the transaction upon a successful claim by shareholders? (0-2)
Voidable if unfair or
prejudicial
2.0
Ease of shareholder suits index (0-10)
9.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents?
(0-1)
Yes
1.0
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3)
Any relevant
document
3.0
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1)
Yes
1.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2)
Yes
2.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1)
Yes
1.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2)
Yes if successful
1.0
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6)
4.0
Does the sale of 51% of Buyer's assets require shareholder approval?
No
0.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders?
Yes
1.0
Must Buyer obtain its shareholders’ approval every time it issues new shares?
No
0.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares?
Yes
1.0
Do shareholders elect and dismiss the external auditor?
Yes
1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve?
Yes
1.0
Extent of ownership and control index (0-7)
6.0
Canada
Doing Business
2020
Page 37
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors?
No
0.0
Must the board of directors include independent and nonexecutive board members?
Yes
1.0
Can shareholders remove members of the board of directors without cause before the end of their term?
Yes
1.0
Must the board of directors include a separate audit committee exclusively comprising board members?
Yes
1.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer?
Yes
1.0
Must Buyer pay declared dividends within a maximum period set by law?
Yes
1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company?
Yes
1.0
Extent of corporate transparency index (0-7)
6.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%?
No
0.0
Must Buyer disclose information about board members’ primary employment and directorships in other
companies?
Yes
1.0
Must Buyer disclose the compensation of individual managers?
Yes
1.0
Must a detailed notice of general meeting be sent 21 days before the meeting?
Yes
1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda?
Yes
1.0
Must Buyer's annual financial statements be audited by an external auditor?
Yes
1.0
Must Buyer disclose its audit reports to the public?
Yes
1.0
Canada
Doing Business
2020
Page 38
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018).
See
the
methodology
for
more
information
.
What the indicators measure
Tax payments for a manufacturing company in 2018 (number
per year adjusted for electronic and joint filing and payment)
Total number of taxes and contributions paid or withheld,
including consumption taxes (value added tax, sales tax or
goods and service tax)
•
Method and frequency of filing and payment
•
Time required to comply with 3 major taxes (hours per year)
Collecting information, computing tax payable
•
Preparing separate tax accounting books, if required
•
Completing tax return, filing with agencies
•
Arranging payment or withholding
•
Total tax and contribution rate (% of commercial profits)
Profit or corporate income tax
•
Social contributions, labor taxes paid by employer
•
Property and property transfer taxes
•
Dividend, capital gains, financial transactions taxes
•
Waste collection, vehicle, road and other taxes
•
Postfiling Index
Time to comply with VAT refund (hours)
•
Time to obtain VAT refund (weeks)
•
Time to comply with a corporate income tax correction (hours)
•
Time to complete a corporate income tax correction (weeks)
•
Case study assumptions
Using a case scenario,
records taxes and mandatory contributions a medium size
company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
filing and payments, time taken to comply with tax laws, time taken to comply with the
requirements of postfiling processes and time waiting.
Doing Business
To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
ceramic flowerpots and sells them at retail.
Taxes and mandatory contributions are measured
at all levels of government.
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
VAT in June 2018.
All taxes and contributions recorded are paid in the
second year of operation (calendar year 2018).
The VAT refund process:
- An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
The corporate income tax audit process:
Canada
Doing Business
2020
Page 39
Paying Taxes - Canada
Figure – Paying Taxes in Canada – Score
Payments
91.7
Time
87.3
Total tax and contribution rate
100.0
Postfiling index
73.2
Figure – Paying Taxes in Canada and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
88.1: Canada (Rank: 19)
86.8: United States (Rank: 25)
84.3: Regional Average (OECD high income)
82.2: Germany (Rank: 46)
81.6: Japan (Rank: 51)
79.2: France (Rank: 61)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Indicator
Canada
OECD high income
Best Regulatory Performance
Payments (number per year)
8
10.3
3 (2 Economies)
Time (hours per year)
131
158.8
49 (3 Economies)
Total tax and contribution rate (% of profit)
24.5
39.9
26.1 (33 Economies)
Postfiling index (0-100)
73.2
86.7
None in 2018/19
Canada
Doing Business
2020
Page 40
Figure – Paying Taxes in Canada and comparator economies – Measure of Quality
Canada France Germany Japan United
States
OECD
high
income
0
20
40
60
80
100
120
Index score
73.2
92.4
97.7
95.2
94.0
86.7
Canada
Doing Business
2020
Page 41
Details – Paying Taxes in Canada
Tax or
mandatory
contribution
Payments
(number)
Notes on
Payments
Time (hours)
Statutory tax
rate
Tax base
Total tax and
contribution
rate (% of
profit)
Notes on TTCR
Federal income
tax
1.0
online
45.0
10% on 1st CAD
500k, 15% on
remaining
income
taxable profits
5.06
Pension plan
contributions
1.0
online
36.0
4.95%
gross salaries
4.74
Property tax
1.0
online
2.4470392%
assessed
property value
3.71
Workplace safety
& insurance
contributions
1.0
online
4.58%
gross salaries
3.70
Provincial income
tax
0.0
jointly
3.5% on 1st CAD
500k, 11.5% on
remaining
income
taxable profits
2.97
Employment
insurance
contributions
0.0
jointly
2.32%
gross salaries
2.33
Health tax
1.0
online
1.95%
payroll in excess
of CAD 450,000
1.92
Ontario Retail
Sales Tax
(ORST)
1.0
online
8%
insurance
premium
0.08
Ontario Health
Premium
0.0
jointly
0.812315058397
694%
gross salaries
0.00
not included
Fuel tax
1.0
fuel consumption
0.00
small amount
Harmonized
sales tax (VAT)
1.0
online
50.0
13%
value added
0.00
not included
Employee
Employment
insurance
contributions
0.0
jointly
1.88%
gross salaries
0.00
not included
Employee
Pension plan
Contributions
0.0
jointly
4.95%
gross salaries
0.00
not included
Totals
8
131
24.5
Canada
Doing Business
2020
Page 42
Details – Paying Taxes in Canada – Tax by Type
Taxes by type
Answer
Profit tax (% of profit)
8.0
Labor tax and contributions (% of profit)
12.7
Other taxes (% of profit)
3.8
Canada
Doing Business
2020
Page 43
Details – Paying Taxes in Canada – Measure of Quality
Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Notes:
Answer
Score
Postfiling index (0-100)
73.2
VAT refunds
Does VAT exist?
Yes
Does a VAT refund process exist per the case study?
Yes
Restrictions on VAT refund process
none
Percentage of cases exposed to a VAT audit (%)
75% - 100%
Is there a mandatory carry forward period?
No
Time to comply with VAT refund (hours)
8.0
85.0
Time to obtain VAT refund (weeks)
14.0
79.1
Corporate income tax audits
Does corporate income tax exist?
Yes
Percentage of cases exposed to a corporate income tax audit (%)
75% - 100%
Time to comply with a corporate income tax correction (hours)
15.0
75.2
Time to complete a corporate income tax correction (weeks)
14.9
53.6
Canada
Doing Business
2020
Page 44
Trading across Borders
records
the
time
and
cost
associated
with
the
logistical
process
of
exporting
and
importing
goods.
measures
the
time
and
cost
(excluding
tariffs)
associated
with
three
sets
of
procedures—documentary
compliance,
border
compliance
and
domestic
transport—within
the
overall
process
of
exporting
or
importing
a
shipment
of
goods.
The
most
recent
round
of
data
collection
for
the
project
was
completed
in
May
2019.
.
Doing Business Doing Business
See
the
methodology
for
more
information
What the indicators measure
Documentary compliance
Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in
origin economy
•
Obtaining, preparing and submitting documents required by
destination economy and any transit economies
•
Covers all documents required by law and in practice, including
electronic submissions of information
•
Border compliance
Customs clearance and inspections
•
Inspections by other agencies (if applied to more than 20% of
shipments)
•
Handling and inspections that take place at the economy’s port
or border
•
Domestic transport
Loading or unloading of the shipment at the warehouse or
port/border
•
Transport between warehouse and port/border
•
Traffic delays and road police checks while shipment is en
route
•
Case study assumptions
To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
Time:
Insurance cost and informal payments for which no receipt is issued are excluded from the
costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
Contributors are private sector experts in international trade logistics and are informed about
exchange rates.
Cost:
- For all 190 economies covered by
, it is assumed a shipment is in a warehouse in
the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
its natural import partner—the economy from which it imports the largest value (price times
quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
the largest purchaser of this product. Shipment value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and
the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy.
- Relevant government agencies include customs, port authorities, road police, border guards,
standardization agencies, ministries or departments of agriculture or industry, national security
agencies and any other government authorities.
Assumptions of the case study:
Doing Business
Canada
Doing Business
2020
Page 45
Trading across Borders - Canada
Figure – Trading across Borders in Canada – Score
Time
to
export:
Border
compliance
99.4
Cost
to
export:
Border
compliance
84.3
Time
to
export:
Documentary
compliance
100.0
Cost
to
export:
Documentary
compliance
61.1
Time
to
import:
Border
compliance
99.6
Cost
to
import:
Border
compliance
85.7
Time
to
import:
Documentary
compliance
100.0
Cost
to
import:
Documentary
compliance
76.8
Figure – Trading across Borders in Canada and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
94.3: Regional Average (OECD high income)
92.0: United States (Rank: 39)
91.8: Germany (Rank: 42)
88.4: Canada (Rank: 51)
85.9: Japan (Rank: 57)
100: France (Rank: 1)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Indicator
Canada
OECD high income
Best Regulatory Performance
Time to export: Border compliance (hours)
2
12.7
1 (19 Economies)
Cost to export: Border compliance (USD)
167
136.8
0 (19 Economies)
Time to export: Documentary compliance (hours)
1
2.3
1 (26 Economies)
Cost to export: Documentary compliance (USD)
156
33.4
0 (20 Economies)
Time to import: Border compliance (hours)
2
8.5
1 (25 Economies)
Cost to import: Border compliance (USD)
172
98.1
0 (28 Economies)
Time to import: Documentary compliance (hours)
1
3.4
1 (30 Economies)
Cost to import: Documentary compliance (USD)
163
23.5
0 (30 Economies)
Canada
Doing Business
2020
Page 46
Figure – Trading across Borders in Canada – Time and Cost
Export
-
Border
Compliance
Export
-
Documentary
Compliance
Import
-
Border
Compliance
Import
-
Documentary
Compliance
0
0.5
1
1.5
2
2.5
Time (hours)
0
20
40
60
80
100
120
140
160
Cost (USD)
2
167
1
156
2
172
1
163
Time (hours) Cost (USD)
Canada
Doing Business
2020
Page 47
Details – Trading across Borders in Canada
Characteristics
Export
Import
Product
HS 87 : Vehicles other than railway or tramway
rolling-stock, and parts and accessories thereof
HS 8708: Parts and accessories of motor vehicles
Trade partner
United States
United States
Border
Buffalo border crossing
Buffalo border crossing
Distance (km)
159
159
Domestic transport time (hours)
2
2
Domestic transport cost (USD)
324
268
Details – Trading across Borders in Canada – Components of Border Compliance
Time to Complete (hours)
Associated Costs (USD)
Export: Clearance and inspections required by
customs authorities
2.1
166.7
Export: Clearance and inspections required by
agencies other than customs
0.0
0.0
Export: Port or border handling
0.5
0.0
Import: Clearance and inspections required by
customs authorities
2.1
171.9
Import: Clearance and inspections required by
agencies other than customs
0.0
0.0
Import: Port or border handling
0.5
0.0
Canada
Doing Business
2020
Page 48
Details – Trading across Borders in Canada – Trade Documents
Export
Import
Inland Bill of Lading
Inland Bill of Lading
Commercial Invoice
Commercial invoice/ cargo control document
Packing List
NAFTA - Certificate of origin/ Canadian Customs Invoice
NAFTA certificate/ customs declaration
Packing list
Canada
Doing Business
2020
Page 49
Enforcing Contracts
.
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019.
See the methodology for more information
What the indicators measure
Time required to enforce a contract through the courts
(calendar days)
Time to file and serve the case
•
Time for trial and to obtain the judgment
•
Time to enforce the judgment
•
Cost required to enforce a contract through the courts (% of
claim value)
Average attorney fees
•
Court costs
•
Enforcement costs
•
Quality of judicial processes index (0-18)
Court structure and proceedings (-1-5)
•
Case management (0-6)
•
Court automation (0-4)
•
Alternative dispute resolution (0-3)
•
Case study assumptions
The dispute in the case study involves the breach of a sales contract between two domestic
businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
To make the data on the time and comparable across economies, several assumptions about the
case are used:
- The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
located in the economy’s largest business city. For 11 economies the data are also collected for the
second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
adequate quality.
- The value of the dispute is 200% of the income per capita or the equivalent in local currency of
USD 5,000, whichever is greater.
- The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
was not adequate.
- The judge decides in favor of the seller; there is no appeal.
- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
Canada
Doing Business
2020
Page 50
Enforcing Contracts - Canada
Figure – Enforcing Contracts in Canada – Score
Time
35.2
Cost
75.0
Quality of judicial processes index
61.1
Figure – Enforcing Contracts in Canada and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
74.1: Germany (Rank: 13)
73.5: France (Rank: 16)
73.4: United States (Rank: 17)
67.8: Regional Average (OECD high income)
65.3: Japan (Rank: 50)
57.1: Canada (Rank: 100)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
the scores for each of the component indicators.
Standardized Case
Claim value
CAD 115,301
Court name
Ontario Superior Court of Justice
City Covered
Toronto
Indicator
Canada
OECD high income
Best Regulatory Performance
Time (days)
910
589.6
120 (Singapore)
Cost (% of claim value)
22.3
21.5
0.1 (Bhutan)
Quality of judicial processes index (0-18)
11.0
11.7
None in 2018/19
Canada
Doing Business
2020
Page 51
Figure – Enforcing Contracts in Canada – Time and Cost
Canada France Germany Japan OECD
high
income
United
States
0
200
400
600
800
1000
Time (days)
0
5
10
15
20
25
30
35
Cost (% of claim value)
910
22.3
447
17.4
499
14.4
360
23.4
589.6
21.5
444
30.5
Time (days) Cost (% of claim value)
Canada
Doing Business
2020
Page 52
Figure – Enforcing Contracts in Canada and comparator economies – Measure of Quality
Canada
France
Germany
Japan
United States
OECD high income
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
2 2 3 4
2.5 3 2 4.5
3 1.5 3.5 4.5
2.5 1 1 3
2.5 4.7 3 4.4
2.5 3.2 2.4 3.6
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Canada
Indicator
Time (days)
910
Filing and service
30
Trial and judgment
730
Enforcement of judgment
150
Cost (% of claim value)
22.3
Attorney fees
15
Court fees
5.3
Enforcement fees
2
Quality of judicial processes index (0-18)
11.0
Court structure and proceedings (-1-5)
4.0
Case management (0-6)
2.0
Court automation (0-4)
3.0
Alternative dispute resolution (0-3)
2.0
Canada
Doing Business
2020
Page 53
Details – Enforcing Contracts in Canada – Measure of Quality
Answer
Score
Quality of judicial processes index (0-18)
11.0
Court structure and proceedings (-1-5)
4.0
1. Is there a court or division of a court dedicated solely to hearing commercial cases?
Yes
1.5
2. Small claims court
1.5
2.a. Is there a small claims court or a fast-track procedure for small claims?
Yes
2.b. If yes, is self-representation allowed?
Yes
3. Is pretrial attachment available?
Yes
1.0
4. Are new cases assigned randomly to judges?
No
0.0
5. Does a woman's testimony carry the same evidentiary weight in court as a man's?
Yes
0.0
Case management (0-6)
2.0
1. Time standards
0.0
1.a. Are there laws setting overall time standards for key court events in a civil case?
Yes
1.b. If yes, are the time standards set for at least three court events?
No
1.c. Are these time standards respected in more than 50% of cases?
Yes
2. Adjournments
0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted?
No
2.b. Are adjournments limited to unforeseen and exceptional circumstances?
No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases?
n.a.
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii)
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
Yes
1.0
4. Is a pretrial conference among the case management techniques used before the competent court?
Yes
1.0
5. Are there any electronic case management tools in place within the competent court for use by judges?
No
0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers?
No
0.0
Court automation (0-4)
3.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?
Yes
1.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court?
No
0.0
3. Can court fees be paid electronically within the competent court?
Yes
1.0
4. Publication of judgments
1.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public
through publication in official gazettes, in newspapers or on the internet or court website?
Yes
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
Yes
Alternative dispute resolution (0-3)
2.0
1. Arbitration
1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all its aspects?
Yes
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—
that cannot be submitted to arbitration?
No
1.c. Are valid arbitration clauses or agreements usually enforced by the courts?
Yes
Canada
Doing Business
2020
Page 54
2. Mediation/Conciliation
0.5
2.a. Is voluntary mediation or conciliation available?
Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
No
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
No
Canada
Doing Business
2020
Page 55
Resolving Insolvency
studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,
which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.
To determine the present value of the amount recovered by creditors,
uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019.
.
Doing Business
Doing Business
See the methodology for more
information
What the indicators measure
Time required to recover debt (years)
Measured in calendar years
•
Appeals and requests for extension are included
•
Cost required to recover debt (% of debtor’s estate)
Measured as percentage of estate value
•
Court fees
•
Fees of insolvency administrators
•
Lawyers’ fees
•
Assessors’ and auctioneers’ fees
•
Other related fees
•
Outcome
Whether business continues operating as a going concern or
business assets are sold piecemeal
•
Recovery rate for creditors
Measures the cents on the dollar recovered by secured
creditors
•
Outcome for the business (survival or not) determines the
maximum value that can be recovered
•
Official costs of the insolvency proceedings are deducted
•
Depreciation of furniture is taken into account
•
Present value of debt recovered
•
Strength of insolvency framework index (0- 16)
Sum of the scores of four component indices:
•
Commencement of proceedings index (0-3)
•
Management of debtor’s assets index (0-6)
•
Reorganization proceedings index (0-3)
•
Creditor participation index (0-4)
•
Case study assumptions
To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
- A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
- The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
The hotel cannot pay back the loan, but makes enough money to operate otherwise.
In addition,
evaluates the quality of legal framework applicable to judicial
liquidation and reorganization proceedings and the extent to which best insolvency practices have
been implemented in each economy covered.
Doing Business
Canada
Doing Business
2020
Page 56
Resolving Insolvency - Canada
Figure – Resolving Insolvency in Canada – Score
Recovery rate
93.3
Strength of insolvency framework index
68.8
Figure – Resolving Insolvency in Canada and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
90.5: United States (Rank: 2)
90.2: Japan (Rank: 3)
89.8: Germany (Rank: 4)
81.0: Canada (Rank: 13)
74.9: Regional Average (OECD high income)
74.6: France (Rank: 26)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Indicator
Canada
OECD high income
Best Regulatory Performance
Recovery rate (cents on the dollar)
86.7
70.2
92.9 (Norway)
Time (years)
0.8
1.7
0.4 (Ireland)
Cost (% of estate)
7.0
9.3
1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern)
1
..
..
Strength of insolvency framework index (0-16)
11.0
11.9
None in 2018/19
Canada
Doing Business
2020
Page 57
Figure – Resolving Insolvency in Canada – Time and Cost
Canada France Germany Japan OECD
high
income
United
States
0
0.5
1
1.5
2
Time (years)
0
2
4
6
8
10
12
Cost (% of estate)
0.8
7.0
1.9
9.0
1.2
8.0
0.6
4.2
1.7
9.3
1.0
10.0
Time (years) Cost (% of estate)
Canada
Doing Business
2020
Page 58
Figure – Resolving Insolvency in Canada and comparator economies – Measure of Quality
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Canada
France
Germany
Japan
United States
OECD high income
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
4.5 2.5 3 1
6 3 1 1
6 3 3 3
6 3 1 3
6 3 3 3
5.3 2.8 2.1 1.9
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Figure – Resolving Insolvency in Canada and comparator economies – Recovery Rate
Canada France Germany Japan United States OECD high income
0
10
20
30
40
50
60
70
80
90
100
Recovery rate(cents on the dollar)
86.7
74.8
79.8
92.1
81.0
70.2
Canada
Doing Business
2020
Page 59
Details – Resolving Insolvency in Canada
Indicator
Answer
Score
Proceeding
reorganization
Mirage management will initiate reorganization proceedings under the Bankruptcy and Insolvency Act, most likely in
consultation with the Bank. This will give the hotel the best chance to continue operating and allow Mirage to
restructure its operations, raise money from additional sources or negotiate with the current creditors.
Outcome
going concern
Continued operation of a restructured business or sale as a going concern are the most likely outcomes of the
restructuring proceedings. More than half of the businesses undergoing reorganization in Canada survive the
proceedings as a going concern. BizBank (secured creditor) will be interested in maximizing the value of the hotel and
unsecured creditors will likely support a restructuring plan as the only way to receive satisfaction of their claims.
Time (in years)
0.8
The maximum time permitted for a reorganization under the BIA is 6 months (statutory limit). Mirage would make an
application to the court for reorganization under the BIA, and then Mirage´s reorganization plan would be negotiated
and developed. The initial order granting protection under the BIA proceedings will contain a broad stay of proceedings
against all creditors. The stay of proceedings is initially of 30 days and can be extended by court order. Assuming that
there are any oppositions or appeals, the process will last 9 months.
Cost (% of estate)
7.0
Major expenses include attorneys' fees (around CAD 200,000) and remuneration of the insolvency representative
(around CAD 250,000).
Recovery rate
(cents on the dollar)
86.7
Canada
Doing Business
2020
Page 60
Details – Resolving Insolvency in Canada – Measure of Quality
Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Note:
Answer
Score
Strength of insolvency framework index (0-16)
11.0
Commencement of proceedings index (0-3)
2.5
What procedures are available to a DEBTOR when commencing insolvency proceedings?
(a) Debtor may file for
both liquidation and
reorganization
1.0
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?
(b) Yes, but a creditor
may file for liquidation
only
0.5
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a)
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value
of its assets
(c) Both (a) and (b)
options are available,
but only one of them
needs to be complied
with
1.0
Management of debtor's assets index (0-6)
4.5
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the
debtor?
No
0.0
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?
Yes
1.0
Does the insolvency framework allow avoidance of preferential transactions?
Yes
1.0
Does the insolvency framework allow avoidance of undervalued transactions?
Yes
1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of
insolvency proceedings?
Yes
1.0
Does the insolvency framework assign priority to post-commencement credit?
(a) Yes over all pre-
commencement
creditors, secured or
unsecured
0.5
Reorganization proceedings index (0-3)
1.0
Which creditors vote on the proposed reorganization plan?
(b) Only creditors
whose rights are
affected by the
proposed plan
1.0
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as
what they would obtain in a liquidation?
No
0.0
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote
separately and are creditors in the same class treated equally?
No
0.0
Creditor participation index (0-4)
3.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency
representative?
Yes
1.0
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?
Yes
1.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency
representative?
Yes
1.0
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting
creditors' claims?
No
0.0
Canada
Doing Business
2020
Page 61
Employing Workers
presents detailed data for the employing workers indicators on the
website (
). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.
Doing Business Doing Business
http://www.doingbusiness.org
The most recent round of data collection was completed in May 2019.
.
See the methodology for more information
What the indicators measure
(i) whether fixed-term contracts are prohibited for permanent
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum
wage;(v) ratio of minimum wage to the average value added per
worker.
Hiring
(i) maximum number of working days allowed per week; (ii)
premiums for work: at night, on a weekly rest day and overtime;
(iii) whether there are restrictions on work at night, work on a
weekly rest day and for overtime work; (iv) length of paid annual
leave.
Working hours
(i) whether redundancy can be basis for terminating workers; (ii)
whether employer needs to notify and/or get approval from third
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.
Redundancy rules
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.
Redundancy cost
Case study assumptions
To make the data comparable across economies, several assumptions about the worker and the
business are used.
- Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
- Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
The worker:
- Is a limited liability company (or the equivalent in the economy).
- Operates a supermarket or grocery store in the economy’s largest business city. For 11
economies the data are also collected for the second largest business city.
- Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
food retail sector and they apply even to firms that are not party to them.
- Abides by every law and regulation but does not grant workers more benefits than those
mandated by law, regulation or (if applicable) collective bargaining agreements.
The business:
Canada
Doing Business
2020
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Employing Workers - Canada
Details – Employing Workers in Canada
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks?
No
Maximum length of a single fixed-term contract (months)
No limit
Maximum length of fixed-term contracts, including renewals (months)
No limit
Minimum wage applicable to the worker assumed in the case study (US$/month)
1844.0
Ratio of minimum wage to value added per worker
0.3
Maximum length of probationary period (months)
3.0
Working hours
Standard workday
8.0
Maximum number of working days per week
6.0
Premium for night work (% of hourly pay)
0.0
Premium for work on weekly rest day (% of hourly pay)
0.0
Premium for overtime work (% of hourly pay)
50.0
Restrictions on night work?
No
Restrictions on weekly holiday?
No
Restrictions on overtime work?
Yes
Paid annual leave for a worker with 1 year of tenure (working days)
10.0
Paid annual leave for a worker with 5 years of tenure (working days)
15.0
Paid annual leave for a worker with 10 years of tenure (working days)
15.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days)
13.3
Redundancy rules
Dismissal due to redundancy allowed by law?
Yes
Third-party notification if one worker is dismissed?
No
Third-party approval if one worker is dismissed?
No
Third-party notification if nine workers are dismissed?
No
Third-party approval if nine workers are dismissed?
No
Retraining or reassignment obligation before redundancy?
No
Priority rules for redundancies?
No
Priority rules for reemployment?
No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
2.0
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
5.0
Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
8.0
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
5.0
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
0.0
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
5.0
Canada
Doing Business
2020
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Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
10.0
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
5.0
Unemployment protection after one year of employment?
Yes
Canada
Doing Business
2020
Page 64
Business Reforms in
Canada
From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
have been implemented by economies in all regions. The following are reforms implemented since
2008.
Doing Business Doing Business
DB2019
Enforcing Contracts:
Canada made enforcing contracts easier by introducing an e-system that allows plaintiffs to file the initial complaint and pay court fees
electronically.
Employing Workers:
Canada amended its legislation to increase paid annual leave after five and ten years of employment and introduce two days of paid sick leave.
DB2018
Dealing with Construction Permits:
Canada made dealing with construction permits more expensive by increasing fees for site plan approval and building permits.
Registering Property:
Canada made registering property more expensive by increasing the Municipal and Provincial Land Transfer Tax (MLTT) Rates.
DB2013
Getting Electricity:
Canada made getting an electricity connection easier by reducing the time needed for external connection works.
DB2012
Paying Taxes:
Canada made paying taxes easier and less costly for companies by reducing profit tax rates, eliminating the Ontario capital tax and harmonizing sales
taxes.
DB2011
Paying Taxes:
Canada harmonized the Ontario and federal tax returns and reduced the corporate and employee tax rates.
Enforcing Contracts:
Canada increased the efficiency of the courts by expanding electronic document submission and streamlining procedures.
DB2009
Starting a Business:
Canada made starting a business easier by making it possible to complete registration processes online in 1 simple procedure.
Paying Taxes:
Canada made paying taxes less costly for companies by lowering the general corporate income tax rate, introducing accelerated depreciation for various
assets and reducing the goods and service tax rate and the small-business tax rate.
=
reform making it easier to do business.
= Change making it more difficult to do business.
Doing Business
Canada
Doing Business
2020
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Canada
Doing Business
2020
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