00000nam 2200000zi 4500 9.955047 CaOODSP 20250919104941 m o d f cr cn||||||||| 250910e20250919oncad obs f000 0 eng d 9780660788852 CaOODSP eng rda CaOODSP n-cn--- CS11-0019/486E-PDF Lesica, Josip, author. Investment responses to a corporate tax kink : evidence from small businesses in Canada / by Josip Lesica. [Ottawa] : Statistics Canada = Statistique Canada, September 19, 2025. ©2025 1 online resource (34 pages) : illustrations, graphs. text txt rdacontent computer c rdamedia online resource cr rdacarrier Analytical Studies Branch research paper series, 1205-9153 ; no. 486 Cover title. Issued also in French under title: Réaction des investissements au coude fiscal des sociétés : preuves tirées des petites entreprises au Canada. "Catalogue no. 11F0019M - No. 486." "2025007"--Page [3]. Includes bibliographical references (pages 33-34). "This paper studies the underlying drivers of small business behavior at the discontinuity in the statutory corporate income tax rates, i.e., the corporate tax kink. It intends to capture the behavioural responses to the tax change at the kink. Increased investments and reported costs are possible strategies that firms use to adjust their taxable income to avoid higher tax rates. High concentration of firms in the taxable income distribution should then be accompanied by a spike in investment at the kink. To evaluate this hypothesis, this study employs the universe of firm-level tax returns from Canada over the 2001 to 2019 period to estimate the distribution of corporate investment and costs around the tax kink along the extensive and intensive margins. It calculates the share of firms that increased their investment to move to the kink and their contribution to overall bunching. Overall, the level and significance of bunching in investments and costs, over time and across specific capital categories, support the hypothesis that small businesses respond to the tax rate change by increasing investment in vehicles and machinery and equipment relatively more than in buildings or intangibles"--Abstract, page 5. Small business Taxation Canada Statistics. Corporations Taxation Canada Statistics. Statistics lcgft Statistics Canada. Analytical Studies Branch, issuing body. Réaction des investissements au coude fiscal des sociétés : (CaOODSP)9.955050 Research paper series (Statistics Canada. Analytical Studies Branch) no. 486. (CaOODSP)9.504421 PDF 10.2 MB https://publications.gc.ca/collections/collection_2025/statcan/11f0019m/11f0019m2025007-eng.pdf HTML N/A https://www150.statcan.gc.ca/n1/pub/11f0019m/11f0019m2025007-eng.htm 11F0019M