The March 29, 2012 Federal Budget proposed significant changes to Canada’s international tax regime. On October 18, 2012, the Minister of Finance (Canada) introduced Bill C-45 in Parliament to implement these changes.1 This Miller Thomson International Tax Update reviews the...
Anti-Surplus Stripping Rule for Canadian Resident Corporations Controlled by Non-Residents Bill C-45 adds a new anti-surplus stripping rule to the Income Tax Act (Canada) (the “Act”) as section 212.3. This provision will apply to a corporation that is: resident in...
IN THIS SECTION: PLOI Relieving Rule for Subsection 15(2) Shareholder Indebtedness Scope of PLOI Exception PLOI Elections Certain Reorganizations Involving Canadian Resident Corporate Creditors Deemed Interest Income To File or Not to File a PLOI Election? Application Date PLOI Relieving...
Existing Canadian Thin Cap Regime The existing Canadian thin cap regime protects the Canadian tax base from excessive interest deductions by limiting the amount of interest expense that can be deducted by a corporation resident in Canada16 (“Canco”) on cross-border...