On March 21, 2013, the Canadian Finance Minister, Jim Flaherty,
tabled the Canadian federal Government's budget for 2013 (the
"Budget 2013"). The speculation leading
up to the Budget was that the Minister's principal focus would
be eliminating a federal deficit estimated to be as high as $26
billion, which could be achieved, in part, through an increase in
tax revenue without the political fallout associated with
increasing rates by instead introducing rules under the
Government's continuing "tax fairness" program
designed to curtail the erosion of Canada's corporate tax base
and protect the integrity of Canada's tax system. Budget 2013
does not disappoint in this regard.
Several domestic and international measures announced in Budget
2013 exemplify decisive action taken by the Government to prevent
the erosion of or broaden Canada's corporate tax base and
reduce tax distortions and protect the integrity of Canada's
tax system. Some of these measures (discussed in
