Withholding tax on interest paid or credited on debts owing to non-residents may be reduced, and in many cases eliminated, as a result of:
- Bill C-28, Budget and Economic Statement Interpretation Act, 2007; and
- the Fifth Protocol to amend the Canada-United States Tax Convention (the Treaty).
Some experts believe that the changes will lower borrowing costs for Canadian companies by increasing the supply of lenders and reducing administrative burdens.
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