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Canadian tax change enhances timber prospects
21/06/2010
A major new change to Canadian tax legislation will make it a much more attractive place to invest money, opening up its rapidly-expanding timber investment industry to the world even further.
Shares of Canadian corporations and some partnership and trust interests will no longer be officially classified as “taxable Canadian property”. This means that investments under foreign ownership will not be subject to Canadian tax liability on gains or onerous compliance rules. It will effectively provide compliance relief that was long-awaited by treaty-based foreign investors.
The move has been welcomed by investors and fund managers, who many of whom are looking to develop the investment potential in the increasingly popular timber investment sector and Canada's vast forests.
Sharon A. Bennett, at Gowlings, the leading French-Canadian law firm said the rules removed a tax impediment that had long stymied foreign investment.
"This bold move by Canada significantly improves the landscape for foreign investment in private Canadian corporations," she said.
"Strengths in technology and life sciences, generous R&D and other tax incentives, and a stable financial sector are some of the reasons why foreign investors have been attracted to Canada as a good place to invest."
Shares of Canadian corporations and some partnership and trust interests will no longer be officially classified as “taxable Canadian property”. This means that investments under foreign ownership will not be subject to Canadian tax liability on gains or onerous compliance rules. It will effectively provide compliance relief that was long-awaited by treaty-based foreign investors.
The move has been welcomed by investors and fund managers, who many of whom are looking to develop the investment potential in the increasingly popular timber investment sector and Canada's vast forests.
Sharon A. Bennett, at Gowlings, the leading French-Canadian law firm said the rules removed a tax impediment that had long stymied foreign investment.
"This bold move by Canada significantly improves the landscape for foreign investment in private Canadian corporations," she said.
"Strengths in technology and life sciences, generous R&D and other tax incentives, and a stable financial sector are some of the reasons why foreign investors have been attracted to Canada as a good place to invest."
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