Torrid Canadian M&A scene bolstered by budget; Removing withholding tax expected to increase inflow of capital.(News)

Investment News,  March, 2007  

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Byline: David Clarke OTTAWA - The federal budget unveiled last week allows the Canadian government to remove withholding tax on arm's-length interest payments under the Canada-U.S. Tax Treaty and with other countries. "This will increase capital inflow into Canada by reducing the tax burden a company has to pay,'' said Heather O'Hagan, associate tax partner at Toronto-based KPMG LLP, part of KPMG International.

It will also further bolster the Canadian mergers-and-acquisitions market, which finished 2006 with another impressive quarter. Last year was the ...

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