At the Milken Institute’s event, Finance Minister François-Philippe Champagne announced a new federal measure to offer “advanced tax rulings” for investments of $1-billion or more. That would give investors binding decisions on how Canadian tax law will apply on a transaction before they commit capital, giving them more certainty.
Through the Advance Income Tax Rulings (AITR) program, investors can obtain a binding decision from the Canada Revenue Agency on how Canadian income tax law will apply to a proposed transaction—before they commit capital. This is designed to ensure major investors into Canada have greater clarity and predictability on how Canadian tax treatment will apply to their investments.
“When investors are considering major projects, certainty matters. By prioritizing advance tax rulings for investments of $1 billion or more, we are giving them the clarity and predictability they need to invest with confidence, create opportunities and help build Canada’s economic future,” said Minister Champagne.
The Milken Institute’s event had more than 200 people in attendence, including pension fund CEOs and CIOs and senior bankers. Canada’s Ambassador to the U.S., Mark Wiseman, is among those who are standing at the back because all the seats are taken.
With files from The Globe and Mail