Canadian Update On Cross-Border Tax Planning – Tax – Canada

Over the last two years, as tax rates in jurisdictions like the
United States have fallen, Canada’s personal and corporate tax
rates continue to be calcified at the high end,
internationally. In Ontario, the top personal marginal rate
is 53.53%. The general corporate tax rate is 26.5% and the
tax rate on investment income of a Canadian-controlled private
corporation is 50.2%. Rather than looking forward to reduced
exposure to high taxes, Canadians are facing exposure to the
indiscriminate exchange of information, both domestically and
internationally, with virtually no protections for privacy

Canada is enacting the new international tax regime rules
promulgated by the OECD under the Base Erosion and Profit Shifting
Project (“BEPS”). The Income Tax Act (Canada)(the
“ITA”) has been amended to promote transparency through
the automatic exchange of information known as the Common Reporting
Standard (“CRS”). This prescription for combatting
tax evasion and aggressive tax avoidance reflects a

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