Private equity firms, multinational corporations or simply investors looking for opportunities have an interest in Canadian investment. Common investment targets are Canadian resource companies or properties, real estate, and Canadian businesses in general. Existing businesses may look to expand into Canada, sometimes as a place from which to enter the U.S. market. This has become especially attractive recently with Canadian corporate tax rates 10% – 15% lower than U.S. rates.
We advise on the tax implications of the investment; how to structure it using a corporation, trust, or other entity; and whether and how to make use of Canada’s international tax treaty network. We also advise on transfer pricing.
In these types of assignments, we
- liaise with the client or the client’s professional representatives to determine the objectives of the investment, how it will be financed, and the necessary background information concerning the client’s overseas operations;
- present a tax-planning proposal for discussion;
- assist in implementing the proposal, retain legal counsel (if required) to complete the acquisition, and attend to various legal filings;
- monitor the ongoing operations of the investment, and advise from time to time as to appropriate tax strategies; and
- assist in structuring the sale of the investment, if and when required, to minimize the Canadian tax implications.
In handling this kind of assignment, we are pleased to work with the client’s existing professionals or, where required, to call on our international contacts for assistance.