( Disponible en anglais seulement )
Cross-Border Tax: Canada-US Tax Treaty Update: Canada Revenue Agency Views on Solutions for Interest and Other Payments from Canadian Unlimited Liability Companies
Paragraph 7(b) of Article IV of the Canada-United States Tax Convention (1980) (the “Canada-US Treaty”) includes an anti-hybrid entity rule that may deny treaty benefits on interest and other payments from a Nova Scotia, British Columbia or Alberta unlimited liability...
( Disponible en anglais seulement )
Cross-Border Tax: Canadian Multinationals Allowed to Double-Dip
Historically, Canadian multinationals have generally been entitled to deduct interest incurred in respect of borrowed funds used to invest, directly or indirectly, in foreign affiliates. The deductibility of interest related to the financing of foreign affiliates combined with the favourable...
( Disponible en anglais seulement )
Current Cases: General Electric Case: Deductibility of Guarantee Fees
On December 4, 2009, Justice Hogan of the Tax Court of Canada issued his Reasons for Judgment in the case of General Electric Capital Canada Inc. (“GECC”) v. The Queen (2009 TCC 563). GECC, a Canadian corporation, operated a financial...
( Disponible en anglais seulement )
International Tax: More Guidance Required from Canada Revenue Agency on So-called « Non-Traditional Convertible Debt Obligations »
Canadian withholding taxes on interest paid by a Canadian resident borrower to a non-resident of Canada that deals at arm’s length with the Canadian borrower was eliminated for most interest payments on or after January 1, 2008. However, the Canadian...
( Disponible en anglais seulement )
International Tax: Corporate Residency – A New Approach to the Application of Central Management and Control
The recent decision of the Tax Chamber of the United Kingdom in Laerstate BV v. HMRC [2009] UKFTT 209 (TC) has caused a stir on both sides of the Atlantic ocean for those interested in corporate residency matters. While not...
( Disponible en anglais seulement )
Provincial Tax: Québec Intensifies its Fight Against Aggressive Tax Planning Schemes
On October 15th, 2009, the Quebec Ministry of Finance released an Information Bulletin containing new rules aimed at fighting “aggressive tax planning” (“ATP”) schemes. These measures give additional tools to Revenue Quebec to identify and attack aggressive plans designed to...
