Canadian Budget Proposal Affects Cross-Border Financing
|Area||Mergers and Acquisitions, Tax, Private Equity|
The Canadian federal budget tabled on March 29, 2012 (the “Budget”) proposed a number of important amendments that affect cross border planning with Canadian corporations. One proposal modifies the Canadian “thin capitalization” rules. This change is likely to affect a significant number of existing financing structures involving foreign-owned Canadian corporations, and may affect future planning.