"Non-Canadian," for all intents and purposes, refers to entities based outside Canada and to those who are not Canadian citizens or qualified permanent residents.
[2] Historically, foreign ownership was a political issue in Canada in the late 1960s and early 1970s, when it was believed by some that U.S. investment had reached new heights (though its levels had actually remained stable for decades), and then in the 1980s, during debates over the Free Trade Agreement.
[citation needed] However, the situation has changed; since in the interim period, Canada itself became a major investor and owner of foreign corporations.
In some smaller countries, such as Montenegro, Canadian investment is sizable enough to make up a major portion of the economy.
[citation needed] In 2004, foreign-controlled corporations accounted for 21.9% of assets held in Canada, and 30.0% of operating revenues yet comprised less than 1% (approx.
[1] Foreign corporations often incorporate branches or special-purpose subsidiaries within Canada in order to facilitate business and control their investments.
[11] Business profits earned in Canada by such a branch will be subject to regular federal and provincial corporate Income Taxes.