Canada Puts Treaty-Shopping Tax Plan on Hold
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Canada’s government is putting on hold plans to clamp down on off-shore tax shelters used by private-equity funds amid concern the measure could curb investment into the country.
The finance department announced in its Feb. 11 budget it wanted to deny tax benefits to foreign investors setting up holding companies in other countries to capitalize on friendly tax treaties. After consultations, the government said Aug. 29 it will hold off and wait for the Organization for Co-operation and Development’s work on the matter.