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ARTICLE · 01 APRIL 2016

Canadian Budget 2016

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On March 22, 2016 the Minister of Finance released the federal budget. Below is a summary of the important tax changes contained in Budget 2016.

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Aird & Berlis LLP
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On March 22, 2016 the Minister of Finance released the federal budget ("Budget 2016"). Below is a summary of the important tax changes contained in Budget 2016. For a more comprehensive discussion of Budget 2016, please click here.

Corporate Tax Measures

Extension to "Back-to-Back" Rules:

The back-to-back rules generally apply to transactions where an intermediary is interposed between a Canadian entity and a foreign entity for the purpose of benefiting from reduced rates of withholding tax on interest payments. Budget 2016 proposes to extend the back-to-back rules. There is no specific legislation regarding any of the proposals as of yet. However, commentary suggests the "back-to-back" rules will apply as follows:

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