Purolator Applauds Newly-Reduced Canadian Corporate Taxes
January 13, 2011 – JERICHO, NY – As part of an ongoing effort to make Canada more attractive to new investors, the Canadian government rolled back its corporate-tax rate on January 1, from 18 percent to 16.5 percent. The tax cut, along with several other investor-friendly steps taken in recent months, could result in a spike in U.S. businesses seeking to expand north of the border.
“Canada’s business-friendly outreach presents a great opportunity for U.S. businesses,” said John Costanzo, president of Purolator USA, a leading provider of cross border logistics services. “Canadian consumers have demonstrated an affinity for U.S. goods, and thanks to the strong Canadian dollar, consumers have the buying power to purchase those goods.
“But,” Costanzo added, “it’s important to remember that doing business in Canada is doing business in a foreign country. Many questions must be answered before the first Canadian purchase can take place. U.S. businesses have to identify a dependable logistics plan that is guaranteed to deliver in the Canadian Market. A hard look must be given to the U.S. and Canadian customs clearing processes. Also, have steps been taken for a returns management program.
Purolator is the “logistics provider of choice” for many U.S. businesses, who turn to Purolator for its experience and expertise in the Canadian market. Purolator maintains an unmatched distribution network throughout Canada, which allows for guaranteed, on-time deliveries. In addition, Purolator holds “trusted shipper” status in several key U.S. and Canadian border clearance programs.
Canada’s new 16.5 percent tax rate presents a stark contrast to the 35 percent rate imposed by the U.S. government. And, as reported by the Wall Street Journal, Canada’s corporate tax reduction follows several other initiatives announced by the government of Prime Minister Stephen Harper to present Canada as a business-friendly nation. The government has also emphasized Canada’s comparatively stable economy and financial system, as well as its quick recovery from the economic downturn.
Canada’s outreach to U.S. businesses comes as several large U.S. chain retailers have already expanded to the Canadian market. Victoria’s Secret, Juicy Couture, Gap, Banana Republic, Brooks Brothers and Bath & Body Works established operations in Canada in recent years. Others, including Target and J.Crew have indicated plans to expand to Canada during 2011.
For more information about expanding your business operations to the Canadian market, please visit www.purolatorusa.com.
About Purolator USA
Purolator USA, Inc. is a subsidiary of Purolator Courier Ltd, Canada’s leading overnight courier company. Purolator USA specializes in the air and surface forwarding of Express, Freight and Parcel shipments, customs brokerage, fulfillment and delivery services to, from and within Canada.
In addition to facilities throughout New York, Purolator USA has locations in key markets including Los Angeles, Seattle, Chicago, Cleveland, Detroit, Dallas/Ft. Worth, Philadelphia, Raleigh/Durham, Montreal, Vancouver and Toronto.