Impact Of Recent International Tax Developments On Canada

In this Update

• Several recent international tax changes could significantly impact the cross-border tax planning strategies of Canadians, including:
  • Canada recently ratified the OECD’s Multilateral Instrument (MLI)
  • The OECD recently released its Programme of Work  [PDF] to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalization of the Economy (Program of Work)
• Next steps for the MLI and Program of Work
• Implications for Canadian businesses in terms of cross-border tax planning

Recent international tax changes proposed by the OECD could significantly impact the cross-border activities of Canadians – particularly with respect to tax planning strategies that shift profits to low or no-tax jurisdictions. First, Canada recently ratified the OECD’s Multilateral Instrument [PDF], which will introduce certain tax measures contained in the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project into many of Canada’s tax