The Annual Report to Parliament under the Corporations Returns Act

Forty years after its inception, the Corporations Returns Act program continues to gather pertinent information on the extent of foreign control in the Canadian economy. As part of this program, Statistics Canada continues to produce an annual report to Parliament on foreign control as stipulated in the Act.

Summary

This report provides current statistics on foreign control as well as historical data so that emerging trends can be identified and tracked. Foreign control is measured, in the report, by the share of total corporate assets and operating revenue held by foreign firms. Asset-based measures of foreign control are used as they provide a longer-term perspective, as they reflect economic decisions and market conditions that evolve more slowly over time. Revenue-based measures are included as they tend to reflect current business conditions.

The Corporations Returns Act (CRA) is a key instrument for measuring foreign control. The CRA is administered by the Chief Statistician of Canada under the authority of the Minister of Industry. The purpose of the Act is to collect financial and ownership information on corporations conducting business in Canada, and to use this information to evaluate the extent and effect of non-resident control of the Canadian corporate economy.

Foreign control information is obtained primarily through ownership returns filed by corporations liable under the Corporations Returns Act. According to the Act, corporations conducting business in Canada whose assets for the reporting period exceed $10 million or whose gross revenue, from business conducted in Canada, exceed $15 million are required to provide structure and ownership information to Statistics Canada. Corporations, under these limits, but having long-term debt or equity owing directly or indirectly to non-residents in excess of a book value of $200 000 are also required to provide this information.

The notion of control in this report encompasses both "direct" and "effective" control. Direct control is exercised by a person, group or corporation if they hold, directly or indirectly, more than 50% of the voting equity of a corporation. Effective control of the corporation implies control through methods other than ownership of the majority voting equity of the corporation, such as when more than 50% of the directors of a corporation are also directors of another corporation. Statistics Canada considers a corporation as foreign controlled when either "direct" or "effective" control is held by a person, group or corporation not resident in Canada.

The Corporations Returns Act, catalogue No. 61-220-XIE is available in electronic format on the Statistics Canada Web site.

Costs

Costs may be applicable in obtaining these statistics.

New Brunswick Contact(s):
SERVING ATLANTIC CANADA
Advisory Services
Statistics Canada
1888 Brunswick Street
Halifax, Nova Scotia  B3J 2G7
Fax: 902-426-9538
Toll-free (information): 1-800-263-1136
Toll-free (publications): 1-800-267-6677
TTY Toll-free (hearing impaired): 1-800-363-7629
E-mail: infostats@statcan.ca
Web site: http://www.statcan.ca/start.html

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National Contact(s):
National Capital Region
Statistical Reference Centre
Statistics Canada
Room 1500
Main Building
Holland Avenue
Ottawa, Ontario  K1A 0T6
Fax: 1-877-287-4369
Toll-free (information): 1-800-263-1136
Toll-free (publications): 1-800-267-6677
TTY Toll-free (hearing impaired): 1-800-363-7629
E-mail: infostats@statcan.ca
Web site: http://www.statcan.ca/start.html