International taxation

CDPQ attaches particular importance to taxation and adheres to rigorous principles regarding tax matters. As an investor, we expect our portfolio companies to adopt transparent and responsible tax practices.

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2018 Highlights

For more details on our actions on taxation, read our 2018 Stewardship Investing Report.

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Our international commitment

Abusive tax practices are one of the biggest equity issues for society. The implementation of an effective and transparent framework is a necessary condition for maintaining citizens’ trust in companies and governments and for ensuring equitable funding for public services.

This is why we support various international initiatives to counter tax evasion. We believe that: 

  • Effective and standard international rules should govern the use of low-tax jurisdictions.
  • Long-term investors have an important role to play in this area. 
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Our objective
Our objective

We intend to exercise leadership within the industry and are committed to advancing tax practices so that all financial players follow the same rules in the spirit of equality and healthy competition.

Our principal actions 

We continuously improve our tax practices. We leverage our position as a shareholder to influence the tax practices of the companies we invest in. 

A component of our due diligence process includes sending a questionnaire to management teams to ensure that their tax practices are appropriate and not abusive.

We ensure that the tax practices of our portfolio companies are appropriate and not abusive.

When considering a potential investment, we weigh the tax aspect the same way we weigh risk. We also ask our managers to use their influence on their business partners to foster the use of alternatives to low-tax jurisdictions to the extent possible.

Increased tax obligations

As our investments have grown internationally, our tax obligations have increased and become more complex. 

This is why we formulated a transparent and detailed statement on international taxation that describes:

  • the tax framework applicable to CDPQ in Canada and around the world;
  • the nature of some of our investments; and
  • our commitment to the fight against tax evasion. 

See our statement on international taxation

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Our statement at a glance

CDPQ’s tax status
  • CDPQ is exempt from tax in Québec and Canada, as well as in several countries where tax exemption agreements are in place. 
  • Where such agreements do not exist, CDPQ structures its investments to limit the double taxation of beneficiaries — in other words, the majority of Quebecers.
  • CDPQ abides by all laws and meets all of its tax obligations.
Presence in low-tax jurisdictions
  • CDPQ’s presence in low-tax jurisdictions is primarily attributable to its investments in co-investment funds that are constituted in these jurisdictions. 
  • The use of these funds in no way affects each investor’s obligation to comply with the tax system in their own jurisdiction and to pay all taxes due.
Influence in the industry
  • CDPQ supports international efforts to fight against tax evasion.
  • CDPQ leverages its role as a shareholder to influence the practices of the companies it invests in.
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