Canadian Tax Treaty Proposals Have Big Implications for PE Firms -- Report

A new report by Osler Hoskin & Harcourt LLP raises a warning flag to investors about federal proposals regarding tax treaty abuse. The proposals, released this month in a government consultation paper, have also been considered from a private equity perspective. Osler Partner John Groenewegen has highlighted some of the specific implications to PE firms that use intermediate investment vehicles when making investments in Canada. If enacted, the measures may deny tax treaty benefits to these vehicles and lead to taxation at full Canadian rates. They may also lead to reciprocal changes by foreign governments, impacting the deal activity of Canadian PE firms abroad.

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