Robert D. Brown Finn Poschmann (C.D. Howe Institute)
Abstract
Federal Finance Minister Jim Flaherty’s March 19 budget included important — and unexpected — proposals that would dramatically reshape income tax rules affecting foreign investment by Canadian corporations. The budget’s proposal to withdraw tax deductibility for interest expenses incurred to finance investments in foreign affiliates is momentous. It could affect Canadian businesses’ ability to participate in the global economy and even to remain competitive in home markets.
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Publisher Info
Paper provided by C.D. Howe Institute in its series e-briefs with number
43.
Find related papers by JEL classification: H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems F20 - International Economics - - International Factor Movements and International Business - - - General