Canadian Tax Fundamentals: Withholding Tax On Cross-Border Interest Payments
Canadian withholding tax must always be considered in any cross-border financing. A failure to fully appreciate and mitigate the potential withholding tax risks can have significant adverse tax and cash flow implications to the parties, including personal liability for the directors of a corporate borrower.
Withholding tax will not always apply to cross-border interest payments, but the precise circumstances in which it either will or will not can be ambiguous. In many instances the analysis […]