Tax Fairness? In Canada? Yea Right.
I hadn't heard of this budget item in the Federal Budget but this Tax Fairness initiative is supposed to stop a practice that has been in place since 1972.
Flaherty's international tax fairness initiative was advertised as a way to get at corporations using tax havens to avoid Canadian taxes. It would end the practice whereby corporations could borrow money in Canada to finance foreign acquisitions and deduct the interest from their Canadian income, a change the budget estimated would generate about $10 million in this fiscal year and $40 million next. Via Brooks Alberta Business News
The concern is that this initiative could inhibit Canadian businesses ability to expand globally.
What do you think?