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Canada’s taxes are the most business-friendly in the world, according to a new report from KPMG – a fact that might grab the attention of businesses looking for takeover targets.

The “Focus on Tax” report ranked developed countries by adding up a wide range of tax costs to businesses – from statutory labour costs to harmonized sales tax – and comparing them to what companies pay in the U.S.

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Not only was Canada ranked No. 1 in the world, but Toronto, Vancouver and Montreal took the top three spots for tax-competitive major international cities.

Recent high-profile tax inversions, or cross-border takeovers motivated by companies looking to cut costs by shifting their incorporation to a country with lower taxes, have annoyed U.S. lawmakers to the point where Congress is considering a bill to make it harder for companies to change addresses abroad. Medical device maker Medtronic Inc. became the latest in this wave of transactions when it agreed on Sunday to buy Covidien Plc for US$42.9-billion. Valeant Pharmaceuticals International Inc. and Actavis Plc are some other big names that have pursued tax inversions.