Corporations always seem to find various ways to keep its taxes paid to a minimum, which is a benefit to its investors. Some methods include utilization of net operating losses to reduce taxes payable in profitable years, keeping untaxed income in foreign jurisdictions (as seen with Apple), and selling unprofitable investments before a year’s end (if you are an investment management company). That being said, we’ve compiled a list of five companies that have corporate tax rates south of 10%.
Nobilis Health Corp. (TSX: NHC) – $9.31
Healthcare Facilities & Services
Nobilis Health Corp., formerly Northstar Healthcare Inc., is a Canada-based company that partners with physicians in the development and management of ambulatory surgical centers (ASCs) in the United States. It owns and manages nine healthcare facilities (Nobilis Facilities) in Texas and Arizona; two MRI centers, an urgent care center, one hospital, and five ambulatory surgery centers (Nobilis ASCs) of which three are located in Houston, Texas, one in Dallas, Texas and one in Scottsdale, Arizona.
- Market Cap: $630,874,884
- Total Revenue (LTM): $128,465,186
- Effective Tax Rate (LTM): 0.7%
- Effective Tax Rate (LTM-1): 1.0%
Enghouse Systems Ltd. (TSXV: ESL) – $50.13
Software
Enghouse Systems Limited is a Canada-based software and services company that develops enterprise software solutions for a variety of vertical markets. The Company operates through two segments: Interactive Management Group and Asset Management Group. The Interactive Management Group specializes in customer interaction software and services. Its core technologies are contact center, attendant console, interactive voice response, call recording and workforce optimization solutions that support any telephony environment, on-premise or in the cloud. The Asset Management Group provides products to telecom service providers as well as fleet management and public safety software solutions for the transportation industry, first responders, distribution, security, utilities and oil and gas industries.
- Market Cap: $1,301,130,369
- Total Revenue (LTM): $249,264,000
- Effective Tax Rate (LTM): 9.1%
- Effective Tax Rate (LTM-1): 11.5%
Monument Mining Ltd. (TSX: MMY) – $0.11
Gold
Monument Mining Limited is a Canada-based gold producer that owns and operates the Selinsing Gold Mine in Malaysia and has a portfolio of gold and other metals properties, including the Mengapur Polymetallic Project in Malaysia and the Murchison Gold Project in Australia.
- Market Cap: $35,900,710
- Total Revenue (LTM): $53,987,595
- Effective Tax Rate (LTM): 9.4%
- Effective Tax Rate (LTM-1): 3.7%
RDM Corp. (TSX: RC) – $3.50
Business Support Services
RDM Corp. is a Canada-based provider of Remote Deposit Capture (RDC) and complex desktop remittance processing solutions. The Company processes approximately $600 billion annually and helps corporations and financial institutions increase revenue, expand market share and improve customer service. It provides both software and hardware solutions, including web-based and mobile RDC for large corporate clients and small businesses, transactional data management, and manufactures a wide range of digital imaging scanners.
- Market Cap: $77,599,099
- Total Revenue (LTM): $26,960,593
- Effective Tax Rate (LTM): 10.0%
- Effective Tax Rate (LTM-1): 9.9%
Clairvest Group Inc. (TSX: CVG) – $29.99
Investment Management & Fund Operators
Clairvest Group Inc. (Clairvest) is a private equity management firm that invests in mid-market companies, principally in North America, across an array of industries. Clairvest invests its own capital, specializes in partnering with management teams and other stakeholders of companies. Clairvest invests its own capital, and that of third parties, through its Clairvest Equity Partners Limited Partnerships.
- Market Cap: $456,884,169
- Total Revenue (LTM): $104,327,000
- Effective Tax Rate (LTM): 5.9%
- Effective Tax Rate (LTM-1): 11.5%
