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Will there be tax savings for Canadians?
TORONTO, Sept. 21 /CNW/ - The Canada-US Income Tax Treaty has not been
updated since 1997. In the 2007 federal budget, Finance Minister Flaherty
suggested that the updated Treaty would ultimately eliminate withholding tax
on interest payments made between residents of Canada and the United States,
as well as improve the Canadian tax treatment of US limited liability
companies. The introduction of the revised Treaty raises a host of questions,
- Will the elimination of withholding tax on cross-border interest
payments reduce the cost of capital and encourage increased levels of
- How will US limited liability companies that invest or operate in
Canada be taxed under the terms of the updated Treaty?
- Will any unexpected changes be made to the Treaty and how will such
changes affect Canadian taxpayers and non-resident investors?
- Will the updated Treaty serve as a model for future amendments to
Canada's other tax treaties?
Michael Friedman, Michael Templeton and David Wentzell are tax lawyers
with McMillan Binch Mendelsohn LLP and are available to discuss the Treaty
announcement and its implications for Canadian taxpayers.
Michael Friedman is a partner in the firm's Tax Group and advises clients
on a broad range of domestic and international taxation matters. Michael has
extensive experience guiding the tax-efficient execution of domestic and cross
border corporate transactions and regularly assists clients in resolving
disputes with both the Canada Revenue Agency and the provincial revenue
Michael Templeton is a partner in the firm's Tax Group and practices in
the area of cross border financing and international transactions.
David Wentzell is a partner in the firm's Tax Group. David's areas of
expertise include the taxation of public and private investment funds and
structured products, business acquisitions, securities offerings, and pension
and retirement income plans.
For further information:
For further information: or to arrange an interview, please contact:
Lisa Mills, Media Profile, (416) 504-8464, firstname.lastname@example.org