Tax Reform in the USA is poised to bolster the ‘markets’ as less tax is generally better for the shareholder (dividends or a greater valuation).

The 21 TSX stocks paying below average tax rates – and why investors should be wary

Link: The 21 TSX stocks paying below average tax rates – and why investors should be wary

Quote1: “Apple Inc. is the current poster child for corporate tax avoidance. It’s long been known for the piles of cash it keeps in its foreign subsidiaries, rather than bringing the money back to the United States and paying corporate income taxes in its home country. The most recent development for Apple – the European Union ordering Ireland to collect $14.5-billion (U.S.) in unpaid taxes – underscored the scope of the company’s tax-reduction efforts.”

Quote2: “Apple is not alone, however, and the phenomenon of corporations paying lower taxes is not limited to the United States. Major Canadian companies have boosted earnings significantly in recent years by paying less in taxes, according to a recent report from CIBC World Markets’ Institutional Equity Research department. They estimate that over the past 30 years, lower taxes have accounted for 17 per cent of the earnings growth in the S&P/TSX composite index.”