Adopting a Canadian Patent/Innovation Box:
Expert Views from PwC
PwC Tax Partner & Canadian Leader PwC SR&ED Tax Practice, Vik Sachdev interviews PwC Tax Partner & Leader of PwC Canadian National Tax Services, Nick Pantaleo, on the adoption of a Patent or Innovation Box
The interview sets the stage with commentary on Canada’s Commercialization & Innovation Gap and then stresses the need for pull drivers to bridge the gap. The Patent Box, as one of those drivers, is then simply defined.
In calling for adoption, reference is made to Patent Box discussions in the U.S.; European experiences are then cited followed by a point by point response to any concerns expressed about adoption. The interview concludes with a strong case for a Patent or Innovation Box being part of Canada’s tool kit to boost IP exploitation and commercialization success.
++ Call for Action:
CATAAlliance has launched an Advocacy Campaign to encourage the adoption of a Canadian form of the "Patent Box", i.e., an "Innovation Box". The Canadian "Innovation Box" would be tailored to provide a preferential, competitive tax regime for the successful exploitation and commercialization of Intellectual Property (IP), including patents, in Canada.
The Campaign, concludes, "The key is how to keep IP (Intellectual Property) at home and commercialize it. Our foreign affiliate rules are not neutral with respect to taxation of IP income taxed in Canada vs. IP income taxed in a low tax jurisdiction and then brought back to Canada tax free. One approach is lower corporate tax rates - starting with low tax rates on income derived from Canadian developed IP".
MP and Community Mobilization
Please send electronically and/or print out and fax this video communiqué and follow up with a phone call to your local MP, media and network of contacts, inclusive of posting on your social media. Please copy us on your correspondence, CATAAlliance CEO, John Reid at firstname.lastname@example.org.