Corporate taxation in Canada : a cross-border perspective

This article describes the principal features of Canada's corporate tax system, focusing on selected aspects of interest in a cross-border context. In reviewing Canada's corporate tax rules, the article considers, among other things, entity classification for Canadian income tax purposes, liability to corporate tax, the corporate tax rates and tax base, tax-deferred reorganization facilities, withholding taxes and anti-avoidance rules. The article also discusses matters of particular relevance to foreign investors, such as the main considerations in establishing a business presence in Canada, acquiring a Canadian business and using a Canadian holding corporation.