Changes To Rules For Canadian Property Dispositions By Non-Residents

Canada taxes non-residents on their gains from the disposition of taxable Canadian property (TCP). Recent amendments have aligned Canada's rules more closely with Canada's tax treaties, thereby eliminating Canadian tax on gains from the disposition of Canadian investments in many cases and enhancing the ability of Canadian business to attract foreign investors (see Relief for Non-Residents of Canada on Canadian Property Dispositions, Tax Update dated April 26, 2010).

In particular, unlisted shares of most corporations or interests in a partnership or trust will be considered TCP at a particular time only if, at any time during the preceding 60 months, more than 50% of the shares' fair market value was derived directly or indirectly from a combination of: