Canada - New Upstream Loan Rules: Policy Issues and Unexpected Applications
- B. Sinclair; K. Kjellander
- Derivatives & Financial Instruments, 2012 (Volume 14), No 2
- 23 March 2012
In August, 2011 the Canadian Department of Finance released draft legislation amending Canada’s foreign affiliate rules. This article reviews the proposed amendments relating to upstream loans and how they fit within Canada’s foreign affiliate system, discusses issues that have been identified with the Proposed Amendments and Finance’s comments on some of these issues, and considers the policy rationale behind, and possible consequences of, the proposed amendments.