The Liberal Party’s 2019 federal election policy platform contained a proposal that did not get much media attention. Overly simplified, the proposal is to limit interest deductions for Canadian taxpayers to 30% of earnings before interest, depreciation, income taxes and amortization. Such a proposal has some precedent with other countries around the world – including the United States – but in a very different context. This 90 minute webinar – of interest to accountants, lawyers, bankers and investment advisors who advise clients on interest deductibility – will take a deep dive into the following:
- A detailed review of existing legislation – paragraph 20(1)(c) of the Income Tax Act – to determine the requirements for interest deductibility;
- A review of Canada’s “thin-capitalization” laws that intend to prevent excessive interest strips to jurisdictions outside of Canada;
- A detailed review of the more important case law as it relates to Canadian interest deductibility;
- A brief review of other jurisdictions’ interest deduction taxation laws;
- A review of the Liberal Party’s election policy proposal; is there currently a case for such a broad sweeping amendment; and
- Examples of the impacts of such proposals should they become law.
NOTE: This live webinar has ended, but you can purchase a replay below