Latest issue of East Coast Offshore available now
ST. JOHN'S, April 9, 2014 /CNW/ - Thin capitalization rules pack a big punch when it comes to the cost of financing operations, EY says in the latest edition of East Coast Offshore. Companies looking to invest in Canada's East Coast Offshore must be mindful of ongoing changes or risk paying more down the road.
Foreign investment in Canadian oil and gas operations has increased substantially in recent years and with this we've seen ongoing refinements to thin capitalization rules to avoid any erosion of the tax base.
Investors, whether operating through a subsidiary corporation, partnership, trust or branch, must review their Canadian thin capital positions on an ongoing basis to ensure that they are not surprised with an unexpected tax liability at the end of the year.
The quarterly report highlights emerging legislative, regulatory and competitive issues affecting Atlantic Canada's oil and gas industry. In this edition you'll also find sections and examples on the following:
- Trends suggest offshore deep-water activities will grow
- Industry collaboration continues to drive new technologies and encourage new entrants
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SOURCE: EY (Ernst & Young)
For further information: EY's Canadian oil and gas team is available to offer more insight into the report's findings. To reach a spokesperson, or for more information, please contact: Erika Bennett, firstname.lastname@example.org, 416 943 5497; Sarah Shields, email@example.com, 604 648 3607; Julie Fournier, firstname.lastname@example.org, 514 874 4308