Canadian CEOs Call for Tax Exemption on IP Income

Some of Canada's most influential business executives have called on the federal government to increase tax exemptions for income derived from intellectual property. The Canadian Council of Chief Executives (Council) argued that the tax burden on economic gains derived from artistic and cultural creativity affects not only business enterprises, but also has a negative impact on Canada's attractiveness as a destination of choice for skilled persons. The Council cited Ireland's tax exemption for artistic earnings, royalties and income derived from patents as a key determinant in that economy's success. Ireland's artistic exemption is currently €250,000. The Canadian Conference of the Arts floated a similar proposal some years ago and although the proposal was more modest, it was unsuccessful. Quebec adopted a similar provision in 1995. For the Report of the Canadian Council of Chief Executives, visit (and note the recommendation regarding taxing IP income at page 18): http://ceoonip.notlong.com Summary by: Jason Young