Canada’s Dept of Finance released draft legislative proposals, with comments due by 7 October 2019.
Canada has complex rules re: foreign affiliate dumping, etc. making it more complex to place subsidiaries under a Canadian holding company without proper planning for Paid Up Capital and other items, and these proposals appear to tighten those rules.
Cross border securities lending arrangements are included re: additional rules.
Tax professionals with Canadian operations should monitor this legislation accordingly.
EY’s Global Tax Alert provides additional details therein.
Click to access 2019G_003652-19Gbl_Canada%20-%20Draft%20legislation%20for%202019%20budget%20measures.pdf
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