Global

Details

  • 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

Overview

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




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now