• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/3/2013

Canada - Relief in proposed foreign affiliate dumping rules amendments 

September 3: Canada’s Department of Finance in August 2013 released a 26-page package of amendments to the foreign affiliate dumping rules contained in section 212.3 of Canada’s tax code.

The proposals are the first revisions to the rules since they were enacted into law in December 2012 as part of Bill C-45. Read TaxNewsFlash-Americas: Canada - Proposed changes to foreign affiliate dumping rules


For the most part, the changes provide relief and are intended to address issues that have been identified by taxpayers (including the Joint Committee in its September 2012 submission).

However, it appears that Finance has also proposed some “tightening changes” that are meant to plug what it perceives to be "loopholes" in the rules.

  • The “relieving changes” generally apply back to the inception of the rules—that is, to transactions that occur after 28 March 2012.
  • The tightening changes generally apply prospectively to transactions that occur on or after 16 August 2013.

Finance requests comment on the draft legislation by 15 October 2013.

Read an August 2013 report prepared by the KPMG member firm in Canada: Welcome Changes to FA Dumping Rules

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