In Print: The Anti-Tax Haven Initiative and the Foreign Affiliate Rules

The March 19, 2007 Canadian federal budget proposed to deny deductions for interest on funds used by Canadian taxpayers to invest in foreign affiliates. On May 14, 2007 the minister of finance released a narrower proposal, referred to as the anti-tax-haven-initiative (ATHI), to limit the interest denial to the so called “double dip” structures.