Doing Business 2018 Canada Economy Pro le of Canada Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Canada Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Canada Income Category High income 18 Population 36,286,425 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 43,660 0 100 79.29 City Covered Toronto DB 2018 Distance to Frontier (DTF) 0 100 86.55: New Zealand (Rank: 1) 80.14: Australia (Rank: 14) 79.29: Canada (Rank: 18) 79.00: Germany (Rank: 20) 77.46: Regional Average (OECD high income) Page 3   76.13: France (Rank: 31) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Canada Ease of Doing Business in Region OECD high income DB 2018 Rank 190 1 Canada Income Category High income 18 Population 36,286,425 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 43,660 0 100 79.29 City Covered Toronto DB 2018 Distance to Frontier (DTF) 0 100 86.55: New Zealand (Rank: 1) 80.14: Australia (Rank: 14) 79.29: Canada (Rank: 18) 79.00: Germany (Rank: 20) 77.46: Regional Average (OECD high income) 76.13: France (Rank: 31) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Canada 2 1 12 8 11 16 28 33 46 54 55 82 Rank 105 109 114 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Canada 98.23 100 88.05 88.36 85.00 79.31 81.46 78.33 80 72.87 66.89 60 54.35 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:+0.03 Change:0.00 Permits Change:0.00 Change:0.00 Change:-0.96 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:0.00 Change:0.00 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:+0.03 Change:0.00 Permits Change:0.00 Change:0.00 Doing Business 2018 Canada Change:-0.96 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Canada Standardized Company Legal form Private Corporation Paid-in minimum capital requirement CAD 0 City Covered Toronto OECD high OECD high Indicator Canada income income Overall Best Performer Procedure – Men (number) 2 4.9 4.9 1.00 (New Zealand) Time – Men (days) 1.5 8.5 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 0.4 3.1 3.1 0.00 (United Kingdom) Procedure – Women (number) 2 4.9 4.9 1.00 (New Zealand) Time – Women (days) 1.5 8.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 0.4 3.1 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 8.7 8.7 0.00 (113 Economies) Figure – Starting a Business in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 99.96: New Zealand (Rank: 1) 98.23: Canada (Rank: 2) 96.47: Australia (Rank: 7) 93.28: France (Rank: 25) 91.35: Regional Average (OECD high income) 83.46: Germany (Rank: 113) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Canada – Procedure, Time and Cost Time Cost 0.4 1.4 0.35 1.2 ost (% of income per capita) 0.3 1 0.25 Time (days) 0.8 0.2 0.6 0.15 Page 6   0.4 0.1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Canada Figure – Starting a Business in Canada – Procedure, Time and Cost Time Cost 0.4 1.4 0.35 1.2 Cost (% of income per capita) 0.3 1 0.25 Time (days) 0.8 0.2 0.6 0.15 0.4 0.1 0.2 0.05 0 0 1 2 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 File for federal incorporation and provincial registration via the online 1 day CAD 200 Electronic Filing Centre Agency : Innovation, Science and Economic Development Canada To le for incorporation electronically (via Online Filing Centre), the cost is CAD 200. There is no fee for the provincial registration in Ontario. Electronic ling for incorporating a business is 1 day and the Business Number is sent to the company within 5 days. The following documents are required to le for federal incorporation and provincial registration: 1. Form 1: Articles of Incorporation 2. Form 2: Initial Registered O ce Address and First Board of Directors 3. Provincial registration form. While extra-provincial registration in Ontario, Newfoundland and Labrador, Nova Scotia and Saskatchewan can be done at the same time when the documents for federal incorporation are led (via Joint Online Registration System), generally, a federal company that intends to conduct business in other Canadian province would need to register in that province individually. See, for example, Part 11 of the Business Corporations Act (British Columbia). Four incorporation options available: 1. Incorporation of a numbered name corporation, e.g. 1234567 Canada Inc. If the company is incorporating under a name, rather than a number, a name search report must be obtained at a cost of CAD 13.8. The search report and articles must be led within 90 days of the production of the Page 7   name search report. (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Canada Details – Starting a Business in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 File for federal incorporation and provincial registration via the online 1 day CAD 200 Electronic Filing Centre Agency : Innovation, Science and Economic Development Canada To le for incorporation electronically (via Online Filing Centre), the cost is CAD 200. There is no fee for the provincial registration in Ontario. Electronic ling for incorporating a business is 1 day and the Business Number is sent to the company within 5 days. The following documents are required to le for federal incorporation and provincial registration: 1. Form 1: Articles of Incorporation 2. Form 2: Initial Registered O ce Address and First Board of Directors 3. Provincial registration form. While extra-provincial registration in Ontario, Newfoundland and Labrador, Nova Scotia and Saskatchewan can be done at the same time when the documents for federal incorporation are led (via Joint Online Registration System), generally, a federal company that intends to conduct business in other Canadian province would need to register in that province individually. See, for example, Part 11 of the Business Corporations Act (British Columbia). Four incorporation options available: 1. Incorporation of a numbered name corporation, e.g. 1234567 Canada Inc. If the company is incorporating under a name, rather than a number, a name search report must be obtained at a cost of CAD 13.8. The search report and articles must be led within 90 days of the production of the name search report. 2. Incorporation of a corporation with a name pre-approved by Corporations Canada (a NUANS® search in electronic format is required to accompany the submission) or 3. Incorporation of a corporation where name approval is to be sought (a NUANS® search in electronic format is required to accompany the submission); 4. Incorporation of a numbered name corporation that has been pre- reserved. It is a same day service, if you submit the forms online prior to 1PM, the incorporation certi cate should be provided on the same day by 5PM. Once a corporation is created, the corporation's information is transmitted to the Canada Revenue Agency which then transmits back the Business Number with the corporate income tax account number. This number can be accessed within a day from the online database of federal corporations on Industry Canada's website. 2 Register for VAT less than one day no charge Agency : Canada Revenue Agency (online procedure) All private corporations with turnover of over 30,000 CAD of taxable supplies per quarter must register for the VAT –referred to as Goods and Services Tax (GST)/Harmonized Sales Tax (HST) – with Canada Revenue Agency (CRA). In order to register with CRA, corporations must provide the Name, phone number, and the Social Insurance Number (SIN) of at least one owner/director of the business and the Business Address and Major Page 8   be accessed within a day from the online database of federal corporations Doing on Industry Canada's Business website. 2018 Canada 2 Register for VAT less than one day no charge Agency : Canada Revenue Agency (online procedure) All private corporations with turnover of over 30,000 CAD of taxable supplies per quarter must register for the VAT –referred to as Goods and Services Tax (GST)/Harmonized Sales Tax (HST) – with Canada Revenue Agency (CRA). In order to register with CRA, corporations must provide the Name, phone number, and the Social Insurance Number (SIN) of at least one owner/director of the business and the Business Address and Major Business Activity (MBA) when registering. Registration can be done online at http://www.cra-arc.gc.ca/menu-eng.html - at no cost. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) Page 9   The water and sewerage connections: Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Canada Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 10   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Canada Standardized Warehouse Estimated value of warehouse CAD 2,755,121.80 City Covered Toronto OECD high OECD high Indicator Canada income income Overall Best Performer Procedures (number) 12 12.5 12.5 7.00 (Denmark) Time (days) 249 154.6 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 1.9 1.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 14.0 11.4 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 86.36: New Zealand (Rank: 3) 84.39: Australia (Rank: 6) 79.29: France (Rank: 18) 78.16: Germany (Rank: 24) 75.14: Regional Average (OECD high income) 72.87: Canada (Rank: 54) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Canada – Procedure, Time and Cost Time Cost 1.2 1 200 Cost (% of warehouse value) 0.8 150 Time (days) 0.6 100 0.4 50 0.2 0 0 1 *2 3 4 5 6 7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 11   component indicators. Doing Business 2018 Canada Figure – Dealing with Construction Permits in Canada – Procedure, Time and Cost Time Cost 1.2 1 200 Cost (% of warehouse value) 0.8 150 Time (days) 0.6 100 0.4 50 0.2 0 0 1 *2 3 4 5 6 7 8 9 10 11 12 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Canada and comparator economies – Measure of Quality 16 15.0 14.0 14.0 14.0 14 12 11.4 9.5 Index score 10 8 6 4 2 0 Canada Australia France Germany New Zealand OECD high income Details – Dealing with Construction Permits in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Undergo preliminary project review with the Municipal Authority 30 days CAD 547 Agency : Toronto Municipal Authority The Preliminary Project Review is a review of a proposal to determine its compliance with the city’s zoning bylaw. 2 Apply and obtain a zoning certi cate 30 days CAD 3,716 Agency : Chief Building Controller Under Chapter 363-3.1 of the Building Code, a zoning certi cate is mandatory prior to requesting a building permit. The zoning certi cate costs 25% of the total prescribed building permit fee. Once the application has been received and payment is made, the application will be circulated to city divisions and Page 12   Canada Australia France Germany New Zealand OECD high income Doing Business 2018 Canada Details – Dealing with Construction Permits in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Undergo preliminary project review with the Municipal Authority 30 days CAD 547 Agency : Toronto Municipal Authority The Preliminary Project Review is a review of a proposal to determine its compliance with the city’s zoning bylaw. 2 Apply and obtain a zoning certi cate 30 days CAD 3,716 Agency : Chief Building Controller Under Chapter 363-3.1 of the Building Code, a zoning certi cate is mandatory prior to requesting a building permit. The zoning certi cate costs 25% of the total prescribed building permit fee. Once the application has been received and payment is made, the application will be circulated to city divisions and external agencies for detailed technical review and comments. Within 30 days of payment of the application fee, a written notice will be provided to the applicant in regards to the completeness or incompleteness of the application and the applicant will be assigned a STAR stream and application le number. 3 Obtain site plan approval from the Municipal Authority 180 days CAD 29,878 Agency : Toronto Municipal Authority A pre-consultation with City Sta (Planning Department) is advised. This step will help save time later on in the process. Several documents are needed in this application, including Site Plans, Floor Plans, Elevations, and SWM Plan Site Plan Control is legislated under Section 41 the Ontario Planning Act and allows the City to review and control important aspects of a proposed project -- for example, the site of buildings, landscaping, pedestrian access, parking, exterior design and appearance, storm water management and waste disposal. The municipality forwards the site plan to the re department for approval. On some occasions, a City councilor will get involved in the review of the site plan and community consultation may be requested by the Planner. The process can take anywhere from 3 month to 9 months depending on the complexity of the site plan, political interests, and on how often the applicant needs to revise the plan to meet the City's desired revisions. Once approved, the City often has conditions that need to be met before building permit can be obtained. 4 Obtain building permit 15 days CAD 11,149 Agency : Toronto Municipal Authority The building permit is issued by the City of Toronto. BuildCo must post the building permit on the construction site. In certain cases, the process of reviewing the building permit application can be started by the City before the site plan is approved. The City can issue a temporary building permit at that time. However, the nal building permit cannot be issued before the site approval is granted. The building permit and the site plan approval are granted by di erent municipal departments. The site plan approval entails verifying planning compliance with the city bylaws (for instance, if enough parking spaces are included in the plans). In contrast, the building permit application review analyzes technical issues. Page 13   the City often has conditions that need to be met before building permit can Doing be obtained.2018 Business Canada 4 Obtain building permit 15 days CAD 11,149 Agency : Toronto Municipal Authority The building permit is issued by the City of Toronto. BuildCo must post the building permit on the construction site. In certain cases, the process of reviewing the building permit application can be started by the City before the site plan is approved. The City can issue a temporary building permit at that time. However, the nal building permit cannot be issued before the site approval is granted. The building permit and the site plan approval are granted by di erent municipal departments. The site plan approval entails verifying planning compliance with the city bylaws (for instance, if enough parking spaces are included in the plans). In contrast, the building permit application review analyzes technical issues. The Ontario Building Code requires that on top of including all design plans and plot information, one must include a form ensuring energy e ciency, completed by the architect, mechanical designer, and electrical designer. This price includes the cost of the application intake, review, and inspection activities. 5 Request and receive foundation work inspection 1 day no charge Agency : Toronto Municipal Authority Building inspectors review projects during key stages of construction to ensure that work complies with the building code and approved plans. Inspectors may visit several times, depending on the project; they must be able to see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to book an inspection. 6 Request and receive frame inspection 1 day no charge Agency : Toronto Municipal Authority To conduct a frame inspection, building inspectors review projects during key stages of construction. This is required to ensure that the work complies with the building code and approved plans. Inspectors may visit several times, depending on the project; they must be able to see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to book an inspection. 7 Request and receive drainage inspection 1 day no charge Agency : Toronto Municipal Authority Building inspectors review projects during key stages of construction. This is required to ensure that work complies with the building code and approved plans. Inspectors may visit several times, depending on the project; they must be able to see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon completion, before back lling and ready for testing. 8 Request and receive sanitary inspection 1 day no charge Agency : Toronto Municipal Authority Building inspectors review projects during key stages of construction. This is required to ensure that work complies with the building code and approved plans. Inspectors may visit several times, depending on the project; they must be able to see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon completion, before back lling and ready for testing. Page 14   9 Request and receive plumbing inspection 1 day no charge require a minimum of 48 hours notice to book an inspection. Inspection is Doing done upon completion, Business before back lling and ready for testing. 2018 Canada 8 Request and receive sanitary inspection 1 day no charge Agency : Toronto Municipal Authority Building inspectors review projects during key stages of construction. This is required to ensure that work complies with the building code and approved plans. Inspectors may visit several times, depending on the project; they must be able to see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon completion, before back lling and ready for testing. 9 Request and receive plumbing inspection 1 day no charge Agency : Toronto Municipal Authority Building inspectors review projects during key stages of construction. This is required to ensure that work complies with the building code and approved plans. Inspectors may visit several times, depending on the project; they must be able to see the part of the work under inspection. Inspectors require a minimum of 48 hours notice to book an inspection. Inspection is done upon completion, before back lling and ready for testing. 10 Obtain water and sewer service connections 14 days CAD 7,500 Agency : Toronto Water: Water Renewal Division This procedure can only be completed after the site plan approval has been granted. The City has implemented a process in 2008 by which the connection work is carried out by any one of 8 listed contractors. Once the application has been submitted, the City sends out a Request for Quotations (RFQ) from the contractors. The desired contractor is chosen based on the list of quotes and a deposit is collected. 11 Request and receive re department inspection 3 days no charge Agency : Fire Department, Toronto Municipal Authority The re department inspector conducts this inspection. 12 Receive nal inspection and occupancy permit 1 day no charge Agency : Toronto Municipal Authority The building inspector conducts the nal inspection. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Canada – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Page 15   Quality control before construction index (0-1) 1.0 Takes place simultaneously with previous procedure. Doing Business 2018 Canada Details – Dealing with Construction Permits in Canada – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections at 1.0 construction? (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company; Owner or investor. Which parties (if any) are required by law to obtain an insurance policy to cover Architect or 1.0 possible structural aws or problems in the building once it is in use (Latent Defect engineer; Liability Insurance or Decennial Insurance)? (0-1) Construction company; Owner or investor; Page 16   Insurance is company; Owner Doing Business 2018 Canada or investor. Which parties (if any) are required by law to obtain an insurance policy to cover Architect or 1.0 possible structural aws or problems in the building once it is in use (Latent Defect engineer; Liability Insurance or Decennial Insurance)? (0-1) Construction company; Owner or investor; Insurance is commonly taken in practice. Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: Page 17   all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. certi cation exam. Doing Business 2018 Canada Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 18   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Canada Standardized Connection Price of electricity (US cents per kWh) 14.2 Name of utility Toronto Hydro City Covered Toronto OECD high OECD high Indicator Canada income income Overall Best Performer Procedures (number) 7 4.7 4.7 2 (United Arab Emirates) Time (days) 137 79.1 79.1 10 (United Arab Emirates) Cost (% of income per capita) 125.3 63.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 7 7.4 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 98.79: Germany (Rank: 5) 85.89: France (Rank: 26) 84.44: Regional Average (OECD high income) 83.97: New Zealand (Rank: 37) 82.31: Australia (Rank: 47) 66.89: Canada (Rank: 105) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Canada – Procedure, Time and Cost Time Cost 90 120 80 Cost (% of income per capita) 70 100 60 Time (days) 80 50 60 40 30 40 20 20 Page 19   10 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Canada Figure – Getting Electricity in Canada – Procedure, Time and Cost Time Cost 90 120 80 Cost (% of income per capita) 70 100 60 Time (days) 80 50 60 40 30 40 20 20 10 0 0 1 2 3 4 *5 *6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Canada and comparator economies – Measure of Quality 8.2 8 8 8 7.8 7.6 Index score 7.4 7.4 7.2 7 7 7 7 6.8 6.6 6.4 Canada Australia France Germany New Zealand OECD high income Details – Getting Electricity in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Toronto Hydro and await comments on proposal 15 calendar days CAD 1,400 Agency : Toronto Hydro An application for an electrical connection can be submitted through a written request by letter or email. Required documents: (1). Architectural, electrical, mechanical drawings (2). Survey plan and site plan (3).Locations of other services, gas, telephone, water, cable (4) required in-service date, proposed service entrance equipment, rated capacity and voltage rating, metering requirements and proposed load. At this point Toronto Hydro requests for a preliminary design deposit based on ($10,000 per MVA of load) which is put towards the cost of the job once it Page 20   proceeds. Canada Australia France Germany New Zealand OECD high income Doing Business 2018 Canada Details – Getting Electricity in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Toronto Hydro and await comments on proposal 15 calendar days CAD 1,400 Agency : Toronto Hydro An application for an electrical connection can be submitted through a written request by letter or email. Required documents: (1). Architectural, electrical, mechanical drawings (2). Survey plan and site plan (3).Locations of other services, gas, telephone, water, cable (4) required in-service date, proposed service entrance equipment, rated capacity and voltage rating, metering requirements and proposed load. At this point Toronto Hydro requests for a preliminary design deposit based on ($10,000 per MVA of load) which is put towards the cost of the job once it proceeds. 2 Await completion and approval of project design 13 calendar days CAD 2,125 Agency : Contractor The customer's electrical consultant prepares the design of service entrance requirement. The electrical design has to be approved by the Electrical Safety Authority. Usually the approval is obtained by the electrical consultant/hired electrical design rm. 3 Submit nal design to Toronto Hydro and await o er to connect 22 calendar days CAD 0 Agency : Toronto Hydro The customer’s private consultants will provide Toronto Hydro with the nal design drawings and requirements. Toronto Hydro prepares an O er to Connect, which includes the connection charges and schedule of work. During this time Toronto Hydro will check for feeder capacity, prepares the design scope and cost, and present the customer with an o er to connect. The OTC outlines the cost of the project and the responsibilities of each party. After the O er to Connect is issued, the applicant must sign and comply with all the conditions in the OTC before any further work can be completed, which includes payments. An external inspection is performed by the utility to prepare the o er to connect and the technical study. No one from the applicant's party is present during the inspection. Toronto Hydro submits an O er to Connect to the customer within 60 days of the request (all information required from the customer must be submitted). 4 Await completion of external works by Toronto Hydro 80 calendar days CAD 44,363 Agency : Toronto Hydro After the estimate has been issued a part of the external connection works are carried out by Toronto Hydro. The works will most likely include the following: (a) Extend the overhead primary feeder cables down the street by installing a new pole line up to the point that is in line with the customer's building. (b) From an overhead feeder install a primary riser switch and fusing at the pole. (c) Construct underground ducts from the base of the pole up to the customer’s property line. (d) Install underground primary cable from the riser switch to the padmounted structure. (e) Install Page 21   to the customer within 60 days of the request (all information required from Doing the customer Business must be 2018 submitted). Canada 4 Await completion of external works by Toronto Hydro 80 calendar days CAD 44,363 Agency : Toronto Hydro After the estimate has been issued a part of the external connection works are carried out by Toronto Hydro. The works will most likely include the following: (a) Extend the overhead primary feeder cables down the street by installing a new pole line up to the point that is in line with the customer's building. (b) From an overhead feeder install a primary riser switch and fusing at the pole. (c) Construct underground ducts from the base of the pole up to the customer’s property line. (d) Install underground primary cable from the riser switch to the padmounted structure. (e) Install padmounted transformer. (f) Make primary and secondary connection at padmounted transformer. The connection fees paid to Toronto Hydro include: engineering design, labor, material, equipment, overhead costs (including administration and inspection). The utility will obtain an excavation permit for the part of the work which is their responsibility. Toronto Hydro performs an economic evaluation on the "expansion" portion of the connection and the forecasted revenue of connecting this customer. In this case, the customer will have to provide a security deposit known as an Expansion Deposit. This expansion deposit will be returned to the customer, if the customer reaches its demand of 140 kVA within the rst ve years (i.e. after each year a portion of the expansion deposit will be given back relative to the demand realized). For the case study, the customer will receive the full amount back after the rst year of operation. 5 Await completion of external works by contractor 14 calendar days CAD 20,500 Agency : Contractor While Toronto Hydro nishes its part of the connection works an electrical contractor proceeds with his part of the works. The contractor's work includes: a) Install padmounted structure on customer property. (b) Construct underground ducts from padmounted structure to join ducts provided by Toronto Hydro at property line and construct ducts underground from padmounted structure to Customer building. (c) Install secondary cable from padmounted transformer to building. 6 Await and receive inspection of internal wiring 1 calendar day CAD 650 Agency : Electrical Safety Authority An inspection of internal wiring is required and can be performed by the Electrical Safety Authority at any time during rough in and nal stages of the process so there are at least two inspections of the internal wiring. The inspection would be performed by the Electrical Safety Authority, who in turn would submit a "Turn On Notice" to Toronto Hydro. This allows Toronto Hydro to provide the nal connection of power to the facility in question. 7 Await nal inspection, meter installation and nal connection 7 calendar days CAD 0 Agency : Toronto Hydro Once Toronto Hydro receives the connection authorization, the nal inspection is performed during meter installation and the nal connection can be made. There is no separate supply contract to be signed. The supply contract is signed at the same time as the connection contract in one contract. Takes place simultaneously with previous procedure. Page 22   Details – Getting Electricity in Canada – Measure of Quality Takes place simultaneously with previous procedure. Doing Business 2018 Canada Details – Getting Electricity in Canada – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 1.0 System average interruption frequency index (SAIFI) 1.4 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.torontoh ydro.com/sites/elect ricsystem/business/ yourbilloverview/Pag es/ElectricityRates.a spx Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The Page 23   Takes place simultaneously with previous procedure. Doing Business 2018 Canada Details – Getting Electricity in Canada – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 1.0 System average interruption frequency index (SAIFI) 1.4 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.torontoh ydro.com/sites/elect ricsystem/business/ yourbilloverview/Pag es/ElectricityRates.a spx Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The Page 24   most recent round of data collection for the project was completed in June 2017. See the methodology for more information. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Canada Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value CAD 2,755,121.80 City Covered Toronto Page 25   OECD high OECD high Doing Business 2018 Canada Standard Property Transfer Property value CAD 2,755,121.80 City Covered Toronto OECD high OECD high Indicator Canada income income Overall Best Performer Procedures (number) 5 4.6 4.6 1.00 (4 Economies) Time (days) 4 22.3 22.3 1.00 (3 Economies) Cost (% of property value) 2.9 4.2 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 21.5 22.7 22.7 29.00 (Singapore) Figure – Registering Property in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 94.47: New Zealand (Rank: 1) 79.31: Canada (Rank: 33) 76.81: Regional Average (OECD high income) 74.17: Australia (Rank: 51) 65.71: Germany (Rank: 77) 60.69: France (Rank: 100) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Canada – Procedure, Time and Cost Time Cost 4 3.5 3.5 3 Cost (% of property value) 3 2.5 2.5 Time (days) 2 2 1.5 1.5 1 1 0.5 0.5 0 0 1 *2 *3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 26   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Canada Figure – Registering Property in Canada – Procedure, Time and Cost Time Cost 4 3.5 3.5 3 Cost (% of property value) 3 2.5 2.5 Time (days) 2 2 1.5 1.5 1 1 0.5 0.5 0 0 1 *2 *3 *4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Canada and comparator economies – Measure of Quality 30 26.0 25 24.0 22.0 22.7 21.5 20.0 20 Index score 15 10 5 0 Canada Australia France Germany New Zealand OECD high income Details – Registering Property in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain tax clearance certi cate from the Municipality 2 days CAD 65 Agency : Municipality (simultaneous with Procedures 1, 3, 4, The parties have to show reasonable evidence to the title insurance and 5) company that the property is clear of tax obligations. A written tax clearance certi cate should be obtained from the Municipality in 2 days for CAD 65. Since February 2016, this procedure can be completed online, and the petitioner will receive the certi cate by email after two business days. The certi cate will need to show the latest tax receipts including the amount of current year taxes and whether all taxes are paid to date. Verbal con rmation that realty taxes have been paid will also su ce. In order to con rm verbally that the realty taxes have been paid, a Tax Certi cate must Page 27   be requested and paid for, and in most cases, it commonly takes more than Canada Australia France Germany New Zealand OECD high income Doing Business 2018 Canada Details – Registering Property in Canada – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain tax clearance certi cate from the Municipality 2 days CAD 65 Agency : Municipality (simultaneous with Procedures 1, 3, 4, The parties have to show reasonable evidence to the title insurance and 5) company that the property is clear of tax obligations. A written tax clearance certi cate should be obtained from the Municipality in 2 days for CAD 65. Since February 2016, this procedure can be completed online, and the petitioner will receive the certi cate by email after two business days. The certi cate will need to show the latest tax receipts including the amount of current year taxes and whether all taxes are paid to date. Verbal con rmation that realty taxes have been paid will also su ce. In order to con rm verbally that the realty taxes have been paid, a Tax Certi cate must be requested and paid for, and in most cases, it commonly takes more than 1 business day to process. Realty Taxes are required to be paid up to the date of the transfer of the property. 2 Obtain a copy of Title Register and relevant registered documents and a Less than a day CAD 32.07 (Title Certi cate regarding Writs of Execution (online procedure), Register) + CAD 15.06 Agency : Land registry simultaneous with (Writs of Execution) procedures 1, 2, 4, A copy of Title Register and relevant registered documents are obtained on- and 5 line, as are the Certi cate regarding Writs of Execution led against the vendor. 3 Obtain Status Certi cate with respect to selling corporation 1 day CAD 86 Agency : Provincial government (simultaneous with Procedures 1, 2, 3, Seller obtains a Status Certi cate from the government of province (and the and 5) federal government, if applicable). 4 Conduct title search (in the absence of title insurance) 1-3 days CAD 2,000 Agency : Teraview (simultaneous with Procedures 1, 2, 3, Depending on whether the property is located in a jurisdiction governed by and 4) the Land Titles Act or the Registry Act or by electronic registration, in the absence of title insurance a simple title search will cost CAD 2,000 and more di cult searches can cost CAD 10,000 or more. In terms of additional investigations: (a) an environmental report would costs between CAD 1,500 to CAD 3,000; (b) a building inspection would take 10 to 21 days and would cost CAD 2,500 to CAD 10,000; and (c) a zoning review by a planning consultant would take between 1 day and 14 days and would cost between CAD 2,000 and CAD 10,000. Title insurance can be obtained for CAD 0.75/CAD 1000 of purchase price if the purchase price is CAD 2,000,000 or more and for CAD 0.80/CAD 1000 of purchase price if the purchase price is less than CAD 2,000,000. 5 Registration of the transfer of title Less than a day CAD 74.72 (electronic Agency : Purchaser's solicitor or Land registry (online procedure) registration fee) + Provincial Land After the agreement has been prepared and the transaction closed, the Transfer Tax + parties’ solicitors will complete the registration for transfer of title. More Municipal Land than 90% of properties in Toronto are governed by electronic registration. In Transfer Tax + CAD the electronic registration regime, the transfer is registered electronically by 75 (Municipal an authorized licensee at the o ces of the purchaser’s solicitor. The registration takes approximately 30 minutes and the cost of electronic administrative fee) Page 28   registration is CAD 74.72, for each document, including tax and service fees. for CAD 0.80/CAD 1000 of purchase price if the purchase price is less than Doing CAD 2,000,000. Business 2018 Canada 5 Registration of the transfer of title Less than a day CAD 74.72 (electronic Agency : Purchaser's solicitor or Land registry (online procedure) registration fee) + Provincial Land After the agreement has been prepared and the transaction closed, the Transfer Tax + parties’ solicitors will complete the registration for transfer of title. More Municipal Land than 90% of properties in Toronto are governed by electronic registration. In Transfer Tax + CAD the electronic registration regime, the transfer is registered electronically by 75 (Municipal an authorized licensee at the o ces of the purchaser’s solicitor. The registration takes approximately 30 minutes and the cost of electronic administrative fee) registration is CAD 74.72, for each document, including tax and service fees. Only authorized licensees have access to the electronic registration system Provincial Land for security reasons. The purchaser is responsible for the cost of registering Transfer Tax is the transfer. The payment of registration fee and the Land Transfer Tax is calculated through a done electronically too if it is in the electronic regime. Solicitor’s fees for their progressive scale: representation in the whole process are estimated in about CAD 6,000 (CAD For a property value 3,500 for the buyer’s solicitor and CAD 2,500 for the seller’s solicitor). under CAD 55,000, Noti cation of change of ownership to assessment department and utility the fee is 0.5% companies can be done the same day immediately after closing, but should From CAD 55,001 to be arranged prior to closing to ensure continuity of services. CAD 250,000, the fee is 1% Over CAD 250,000, the fee is 1.5%. Municipal Land Transfer Tax for the City of Toronto is calculated through the following scheme (plus an administration fee of CAD 75 effective on April 1. 2016): For a property value up to and including CAD 55,000.00, the MLTT Rate is 0.5% From CAD 55,000.01 to CAD 400,000.00, the MLTT Rate is 1% From CAD 400,000.01 to CAD 40,000,000.00, the MLTT Rate is 1.5% Over CAD 40,000,000.00, the MLTT Rate is 1%. Takes place simultaneously with previous procedure. Details – Registering Property in Canada – Measure of Quality Answer Score Quality of the land administration index (0-30) 21.5 Reliability of infrastructure index (0-8) 7.0 Page 29   Takes place simultaneously with previous procedure. Doing Business 2018 Canada Details – Registering Property in Canada – Measure of Quality Answer Score Quality of the land administration index (0-30) 21.5 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? Toronto Land Registry O ce In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Toronto Land Registry O ce In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 3.0 Who is able to obtain information on land ownership at the agency in charge of Freely accessible 1.0 immovable property registration in the largest business city? by anyone Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: https://www.tera netexpress.ca/cs p/welcome.htm Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: https://www.tera netexpress.ca/co ntent/tvuser/cus tomer/Teranet_e Xpress_Pricing_2 0151102.pdf Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Page 30   Xpress_Pricing_2 Doing Business 2018 Canada 0151102.pdf Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: https://www.tera netexpress.ca/co ntent/tvuser/cus tomer/Teranet_e Xpress_Pricing_2 0151102.pdf Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 6.0 Are all privately held land plots in the economy formally registered at the immovable Yes 2.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 5.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 Page 31   engaged in good faith in a property transaction based on erroneous information Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Doing Business 2018 Canada Is there a speci c compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Lawyer. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Superior Court property worth 50 times gross national income (GNI) per capita and located in the of Justice largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 1 and 2 2.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a Page 32   credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Canada Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. OECD high OECD high Indicator Canada income income Overall Best Performer Strength of legal rights index (0-12) 9 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 8 6.6 6.6 8.00 (34 Economies) Page 33   Credit registry coverage (% of adults) 0.0 18.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Canada OECD high OECD high Indicator Canada income income Overall Best Performer Strength of legal rights index (0-12) 9 6.0 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 8 6.6 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 18.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 100.0 63.7 63.7 100.00 (23 Economies) Figure – Getting Credit in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Australia (Rank: 6) 85.00: Canada (Rank: 12) 70.00: Germany (Rank: 42) 63.03: Regional Average (OECD high income) 50.00: France (Rank: 90) 100.00: New Zealand (Rank: 1) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Canada and comparator economies 14 12 12 11 10 9 Index score 8 6 6.0 6 4 4 2 0 Canada Australia France Germany New Zealand OECD high income Details – Legal Rights in Canada Strength of legal rights index (0-12) 9 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 34   Canada Australia France Germany New Zealand OECD high income Doing Business 2018 Canada Details – Legal Rights in Canada Strength of legal rights index (0-12) 9 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? Yes Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Canada and comparator economies 10 8 8 8 8 7 6.6 Index score 6 6 4 2 0 Canada Australia France Germany New Zealand OECD high income Details – Credit Information in Canada Page 35   0 Canada Doing Business 2018 Australia Canada France Germany New Zealand OECD high income Details – Credit Information in Canada Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 8 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 31,346,536 0 Number of firms 2,174,280 0 Total 33,520,816 0 Percentage of adult population 100.0 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 36   transactions; Available legal remedies (damages, Percentage of adult population 100.0 0.0 Doing Business 2018 Canada Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. OECD high OECD high Indicator Canada income income Overall Best Performer Extent of conflict of interest regulation index (0- 8.7 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 6.4 6.4 Page 37   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Canada OECD high OECD high Indicator Canada income income Overall Best Performer Extent of conflict of interest regulation index (0- 8.7 6.4 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 6.4 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 81.67: New Zealand (Rank: 2) 78.33: Canada (Rank: 8) 66.67: France (Rank: 33) 63.93: Regional Average (OECD high income) 60.00: Australia (Rank: 57) 58.33: Germany (Rank: 62) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Canada and comparator economies – Measure of Quality Canada 8 9 8 7 6 9 Australia 9 2 8 4 5 8 France 10 3 8 8 5 6 Germany 7 5 5 6 7 5 New Zealand 7 9 10 7 7 9 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Canada – Measure of Quality Answer Score Page 38   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Canada Details – Protecting Minority Investors in Canada – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 8.7 Extent of disclosure index (0-10) 8 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 2.0 2) the transaction and on the con ict of interest Extent of director liability index (0-10) 9 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 9 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Page 39   shareholder Ease ofBusiness Doing suits index 2018 (0-10) Canada 9 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7 Extent of shareholder rights index (0-10) 6 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 7 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 Page 40   of Buyer? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Canada Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 41   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Doing Business 2018 Canada Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. OECD high OECD high Indicator Canada income income Overall Best Performer Payments (number per year) 8 10.9 10.9 3 (Hong Kong SAR, China) Page 42   return, but within the tax assessment period. Doing Business 2018 Canada OECD high OECD high Indicator Canada income income Overall Best Performer Payments (number per year) 8 10.9 10.9 3 (Hong Kong SAR, China) Time (hours per year) 131 160.7 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 20.9 40.1 40.1 18.47% (32 Economies) Postfiling index (0-100) 73.23 83.45 83.45 99.38 (Estonia) Figure – Paying Taxes in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 91.08: New Zealand (Rank: 9) 88.05: Canada (Rank: 16) 85.62: Australia (Rank: 26) 83.07: Regional Average (OECD high income) 82.14: Germany (Rank: 41) 78.55: France (Rank: 54) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Canada and comparator economies – Measure of Quality 120 95.34 97.67 96.90 100 92.40 83.45 80 73.23 Index score 60 40 20 0 Canada Australia France Germany New Zealand OECD high income Details – Paying Taxes in Canada Total tax and Tax or mandatory Payments Notes on Time contribution rate Notes contribution (number) Payments (hours) Statutory tax rate Tax base (% of profit) on TTR Page 43   Pension plan 1 online 36 4.95% gross salaries 4.72 Doing Business 2018 Canada Figure – Paying Taxes in Canada and comparator economies – Measure of Quality 120 95.34 97.67 96.90 100 92.40 83.45 80 73.23 Index score 60 40 20 0 Canada Australia France Germany New Zealand OECD high income Details – Paying Taxes in Canada Total tax and Tax or mandatory Payments Notes on Time contribution rate Notes contribution (number) Payments (hours) Statutory tax rate Tax base (% of profit) on TTR Pension plan 1 online 36 4.95% gross salaries 4.72 contributions Property tax 1 online 2.8273363% assessed 4.10 property value Workplace safety & 1 online 4.54% gross salaries 3.67 insurance contributions Employment 0 jointly 2.632% gross salaries 2.59 insurance contributions Federal income tax 1 online 45 10.5% on 1st CAD taxable 2.44 500k, 15% on profits remaining income Health tax 1 online 1.95% payroll in 1.92 excess of CAD 450,000 Provincial income tax 0 jointly 4.5% on 1st CAD 500k, taxable 1.38 11.5% on remaining profits income Ontario Retail Sales 1 online 8% insurance 0.08 Tax (ORST) premium Ontario Health 0 jointly 0.812315058397694% gross salaries 0.00 not Premium included Employee 0 jointly 1.88% gross salaries 0.00 not Employment included insurance contributions Page 44   Ontario Health 0 jointly 0.812315058397694% gross salaries 0.00 not Premium Doing Business 2018 Canada included Employee 0 jointly 1.88% gross salaries 0.00 not Employment included insurance contributions Employee Pension 0 jointly 4.95% gross salaries 0.00 not plan Contributions included Fuel tax 1 fuel 0.00 small consumption amount Harmonized sales 1 online 50 13% value added 0.00 not tax (VAT) included Totals 8 131 20.9 Details – Paying Taxes in Canada – Tax by Type Taxes by type Answer Profit tax (% of profit) 3.8 Labor tax and contributions (% of profit) 12.9 Other taxes (% of profit) 4.2 Details – Paying Taxes in Canada – Measure of Quality Answer Score Post ling index (0-100) 73.23 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 7.5 85 Time to obtain a VAT refund (weeks) 14.0 79.1 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 75% - 100% Time to comply with a corporate income tax audit (hours) 15.0 75.23 Time to complete a corporate income tax audit (weeks) 14.9 53.57 Page 45   Percentage Doing of cases Business 2018exposed to a corporate income tax audit (%) Canada 75% - 100% Time to comply with a corporate income tax audit (hours) 15.0 75.23 Time to complete a corporate income tax audit (weeks) 14.9 53.57 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the Page 46   chosen export or import product and the trading partner, as is the a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Canada Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 47   of agriculture or industry, national security agencies and any other Doing Business 2018 Canada government authorities. OECD high OECD high Indicator Canada income income Overall Best Performer Time to export: Border compliance (hours) 2 12.7 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 167 149.9 149.9 0.00 (19 Economies) Time to export: Documentary compliance 1 2.4 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 156 35.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 2 8.7 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 172 111.6 111.6 0.00 (27 Economies) Time to import: Documentary compliance 1 3.5 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 163 25.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.92: Regional Average (OECD high income) 91.77: Germany (Rank: 39) 88.36: Canada (Rank: 46) 84.63: New Zealand (Rank: 56) 70.65: Australia (Rank: 95) 100.00: France (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Canada – Time and Cost Time Cost 167 172 2.5 163 156 160 2 2 2 140 120 Time (hours) Cost (USD) 1.5 100 1 1 80 1 60 0.5 40 20 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 48   Doing Business 2018 Canada Figure – Trading across Borders in Canada – Time and Cost Time Cost 167 172 2.5 163 156 160 2 2 2 140 120 Time (hours) Cost (USD) 1.5 100 1 1 80 1 60 0.5 40 20 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Canada Characteristics Export Import Product HS 87 : Vehicles other than railway or tramway rolling-stock, and HS 8708: Parts and accessories of parts and accessories thereof motor vehicles Trade partner United States United States Border Buffalo border crossing Buffalo border crossing Distance (km) 159 159 Domestic transport 2 2 time (hours) Domestic transport 324 268 cost (USD) Details – Trading across Borders in Canada – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 2.1 166.7 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.5 0.0 Import: Clearance and inspections required by customs authorities 2.1 171.9 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.5 0.0 Details – Trading across Borders in Canada – Trade Documents Export Import Page 49   cost (USD) Doing Business 2018 Canada Details – Trading across Borders in Canada – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 2.1 166.7 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 0.5 0.0 Import: Clearance and inspections required by customs authorities 2.1 171.9 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 0.5 0.0 Details – Trading across Borders in Canada – Trade Documents Export Import Inland Bill of Lading Inland Bill of Lading Commercial Invoice Commercial invoice/ cargo control document Packing List NAFTA - Certificate of origin/ Canadian Customs Invoice NAFTA certificate/ customs declaration Packing list Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Page 50   NAFTA certificate/ customs declaration Packing list Doing Business 2018 Canada Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value CAD 109,801.00 Court name Ontario Superior Court of Justice City Covered Toronto OECD high OECD high Indicator Canada income income Overall Best Performer Time (days) 910 577.8 577.8 164.00 (Singapore) Cost (% of claim value) 22.3 21.5 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.5 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.00: Australia (Rank: 3) 73.04: France (Rank: 15) 71.48: New Zealand (Rank: 21) Page 51   of judicial processes Quality Business Doing index (0-18) 2018 Canada 9.5 11.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.00: Australia (Rank: 3) 73.04: France (Rank: 15) 71.48: New Zealand (Rank: 21) 71.32: Germany (Rank: 22) 66.76: Regional Average (OECD high income) 54.35: Canada (Rank: 114) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Canada – Time and Cost Time Cost 1000 910 30 27.2 23.2 25 22.3 Cost (% of claim value) 800 21.5 17.4 577.8 20 Time (days) 600 499 14.4 15 402 395 400 10 216 200 5 0 0 Australia Canada France Germany New Zealand OECD high income Figure – Enforcing Contracts in Canada and comparator economies – Measure of Quality Canada 2 2 1 4.5 Australia 2.5 5.5 3 4.5 France 2.5 3 1 4.5 Germany 3 1.5 2 4.5 New Zealand 2 3 1.5 3 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 16 Page 52   18 0 0 Australia Canada France Germany New Zealand OECD high income Doing Business 2018 Canada Figure – Enforcing Contracts in Canada and comparator economies – Measure of Quality Canada 2 2 1 4.5 Australia 2.5 5.5 3 4.5 France 2.5 3 1 4.5 Germany 3 1.5 2 4.5 New Zealand 2 3 1.5 3 OECD high income 2.5 2.9 2 3.6 0 2 4 6 8 10 12 14 16 18 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Canada Indicator Time (days) 910 Filing and service 30 Trial and judgment 730 Enforcement of judgment 150 Cost (% of claim value) 22.3 Attorney fees 15 Court fees 5.3 Enforcement fees 2 Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 2.0 Court automation (0-4) 1.0 Alternative dispute resolution (0-3) 2.0 Details – Enforcing Contracts in Canada – Measure of Quality Page 53   Alternative dispute resolution (0-3) 2.0 Doing Business 2018 Canada Details – Enforcing Contracts in Canada – Measure of Quality Answer Score Quality of judicial processes index (0-18) 9.5 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 2.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 1.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 54   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Canada 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 0.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or No consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 55   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Canada Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) OECD high OECD high Indicator Canada income income Overall Best Performer Recovery rate (cents on the dollar) 87.5 71.2 71.2 93.1 (Norway) Time (years) 0.8 1.7 1.7 0.4 (Ireland) Page 56   Cost (% of estate) 7.0 9.1 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Canada OECD high OECD high Indicator Canada income income Overall Best Performer Recovery rate (cents on the dollar) 87.5 71.2 71.2 93.1 (Norway) Time (years) 0.8 1.7 1.7 0.4 (Ireland) Cost (% of estate) 7.0 9.1 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 11.0 12.1 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Canada and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.27: Germany (Rank: 4) 81.46: Canada (Rank: 11) 78.79: Australia (Rank: 18) 76.12: Regional Average (OECD high income) 73.91: France (Rank: 28) 71.85: New Zealand (Rank: 32) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Canada – Time and Cost Time Cost 2 1.9 10 9.0 9.1 1.7 8.0 8.0 8 1.5 7.0 Cost (% of estate) 1.3 1.2 Time (years) 6 1.0 1 0.8 3.5 4 0.5 2 0 0 Australia Canada France Germany New Zealand OECD high income Figure – Resolving Insolvency in Canada and comparator economies – Measure of Quality Canada 4.5 2.5 3 1 Page 57   0 0 Australia Canada France Germany New Zealand OECD high income Doing Business 2018 Canada Figure – Resolving Insolvency in Canada and comparator economies – Measure of Quality Canada 4.5 2.5 3 1 Australia 5 2.5 3 0.5 France 6 3 1 1 Germany 6 3 3 3 New Zealand 3 3 2 0.5 OECD high income 5.4 2.8 2.3 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Canada and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 90 87.5 84.2 85 82.5 80.6 80 75 73.5 71.2 70 65 60 Canada Australia France Germany New Zealand OECD high income Details – Resolving Insolvency in Canada Indicator Answer Explanation Proceeding reorganization Mirage management will initiate reorganization proceedings under the Bankruptcy and Insolvency Act, most likely in consultation with the Bank. This will give the hotel the best chance to continue operating and allow Mirage to restructure its operations, raise money from additional sources or negotiate with the current creditors. Outcome going concern Continued operation of a restructured business or sale as a going concern are the most likely outcomes of the restructuring proceedings. More than half of the businesses undergoing reorganization in Canada survive the proceedings as a going concern. BizBank (secured creditor) will be interested in maximizing the value of the hotel and unsecured creditors will likely support a restructuring plan as the only way to receive satisfaction of their claims. Time (in years) 0.8 The maximum time permitted for a reorganization under the BIA is 6 months (statutoryPage 58   Canada Australia France Germany New Zealand OECD high income Doing Business 2018 Canada Details – Resolving Insolvency in Canada Indicator Answer Explanation Proceeding reorganization Mirage management will initiate reorganization proceedings under the Bankruptcy and Insolvency Act, most likely in consultation with the Bank. This will give the hotel the best chance to continue operating and allow Mirage to restructure its operations, raise money from additional sources or negotiate with the current creditors. Outcome going concern Continued operation of a restructured business or sale as a going concern are the most likely outcomes of the restructuring proceedings. More than half of the businesses undergoing reorganization in Canada survive the proceedings as a going concern. BizBank (secured creditor) will be interested in maximizing the value of the hotel and unsecured creditors will likely support a restructuring plan as the only way to receive satisfaction of their claims. Time (in years) 0.8 The maximum time permitted for a reorganization under the BIA is 6 months (statutory limit). Mirage would make an application to the court for reorganization under the BIA, and then Mirage´s reorganization plan would be negotiated and developed. The initial order granting protection under the BIA proceedings will contain a broad stay of proceedings against all creditors. The stay of proceedings is initially of 30 days and can be extended by court order. Assuming that there are any oppositions or appeals, the process will last 9 months. Cost (% of 7.0 Major expenses include attorneys' fees (around CAD 200,000) and remuneration of the estate) insolvency representative (around CAD 250,000). Recovery rate (cents on the 87.5 dollar) Details – Resolving Insolvency in Canada – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.5 Page 59   dollar) Doing Business 2018 Canada Details – Resolving Insolvency in Canada – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.5 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5 pre- commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 1.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated Page 60   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Canada Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request Yes 1.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of Page 61   the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Canada Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Canada Answer Hiring Page 62   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Canada Details – Labor Market Regulation in Canada Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 1565.7 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? Yes Paid annual leave for a worker with 1 year of tenure (working days) 10.0 Paid annual leave for a worker with 5 years of tenure (working days) 10.0 Paid annual leave for a worker with 10 years of tenure (working days) 10.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 10.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 63   Third-party Doing approval Business 2018 if nine workers are dismissed? Canada No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 2.0 Notice period for redundancy dismissal for a worker with 5 years of tenure 5.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 5.0 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 5.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 10.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 5.0 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 105.0 Receive 100% of wages on maternity leave? No Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 3.2 Business Reforms in Canada In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Canada implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Canada made dealing with construction permits more expensive by increasing fees for site plan approval and building permits. DB2013 Getting Electricity: Canada made getting an electricity connection easier by reducing the time needed for external connection works. Page 64   Minimum contribution period for unemployment protection (months)? 3.2 Doing Business 2018 Canada Business Reforms in Canada In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Canada implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Canada made dealing with construction permits more expensive by increasing fees for site plan approval and building permits. DB2013 Getting Electricity: Canada made getting an electricity connection easier by reducing the time needed for external connection works. DB2012 Paying Taxes: Canada made paying taxes easier and less costly for companies by reducing pro t tax rates, eliminating the Ontario capital tax and harmonizing sales taxes. DB2011 Paying Taxes: Canada harmonized the Ontario and federal tax returns and reduced the corporate and employee tax rates. Enforcing Contracts: Canada increased the e ciency of the courts by expanding electronic document submission and streamlining procedures. DB2009 Starting a Business: Canada made starting a business easier by making it possible to complete registration processes online in 1 simple procedure. Paying Taxes: Canada made paying taxes less costly for companies by lowering the general corporate income tax rate, introducing accelerated depreciation for various assets and reducing the goods and service tax rate and the small-business tax rate. Page 65   Paying Taxes: Canada made paying taxes less costly for companies by lowering the general corporate income tax rate, introducing accelerated Doing Business 2018depreciation Canada for various assets and reducing the goods and service tax rate and the small-business tax rate. Page 66