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Recent Canadian Tax Developments for Cross-Border Transactions


Webinar
Product Code - TMW04
Speaker(s): Patrick Marley, Osler, Hoskin & Harcourt LLP (Partner) and Sue Wooles, Osler, Hoskin & Harcourt LLP (Senior Associate)
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 Various legislative and case law developments will impact on the manner in which Canada taxes inbound and outbound investments. Many of these changes will apply to investments into (or from) Canada from (or into) the United States or other countries. Also, recent developments will be relevant generally to the manner in which certain provisions of OECD model based tax treaties are interpreted.

Presentation Objectives

The objectives of this live webinar will include providing participants with an understanding and practical application of the following:

I. Inbound Investment Rules

  • Tax treatment of investments into Canada through Luxembourg, Netherlands or other treaty–based holding companies, including minimizing Canadian withholding taxes, accessing capital gains exemptions, maximizing cross-border capital and avoiding anti-hybrid rules in Article IV(7) of Canada-US treaty
  • Impact of proposed foreign affiliate dumping transactions on new or existing investments
  • Treaty residency, including a discussion of the recent decision of the Supreme Court of Canada in Fundy Settlement (also known as St. Michael Trust Corp), requirements under Article IV(1) of tax treaties, limitation on benefits rules, and general anti-avoidance rules
  • Beneficial ownership, including a discussion of the recent Velcro Canada decision and the Prévost Car decision
  • Recent developments with respect to the general anti-avoidance rule based on the Supreme Court of Canada’s decision in Copthorne
  • Proposed changes to thin capitalization rules

II. Treaty Benefits for Hybrid Entities

  • Discussion of treaty issues for hybrid entities under the Canada-US treaty, OECD guidance, and the TD Securities decision

III. Outbound Investment Rules

  • Proposed changes to Canada’s foreign affiliate rules, including treatment of distributions, upstream loans, mergers/demergers, and surplus accounts
  • Anti-avoidance rules regarding share ownership of foreign affiliates
  • Transfer pricing, including General Electric decision regarding guarantee fees, and pending Supreme Court of Canada decision in GlaxoSmithKline

Patrick Marley, Osler, Hoskin & Harcourt LLP (Partner) and Sue Wooles, Osler, Hoskin & Harcourt LLP (Senior Associate)

 Patrick Marley is a partner in Osler, Hoskin & Harcourt, LLP. He advises on tax issues associated with international tax planning, domestic and cross-border mergers and acquisitions, corporate reorganizations, corporate finance and various other tax matters. He has experience representing clients in various industries including financial services, mining, oil and gas, telecommunications, manufacturing and technology. Patrick appeared before the Canadian Senate Banking Committee in 2008 as a tax expert in respect of proposed foreign investment entity and non-resident trust tax rules. Prior to joining Osler, Patrick worked in the Canadian Department of Finance where he was extensively involved in drafting legislation and formulating tax policy related to foreign affiliates, foreign source income and foreign investments. International Fiscal Association: member of council for Canadian branch. Contributing editor for CCH’s International Tax, and Tax Management Business Operations in Canada; regular contributor to Tax Management International Journal. Called to the Bars of Ontario (1997) and New York (2004).

Sue Wooles is a senior tax associate at Osler, Hoskin & Harcourt LLP. Her tax practice focuses on corporate tax planning, including international tax planning, tax aspects of mergers and acquisitions, corporate reorganizations, corporate finance and cross-border transactions, as well as tax dispute resolution. She has experience representing clients in various industries including financial services, technology, manufacturing and oil and gas. Prior to joining Osler, Sue was a tax associate in the New York offices of two U.S. law firms. Contributing editor for Tax Management Business Operations in Canada. Called to the Bars of Ontario (2007) and New York (2001).