(February 7 – 16:20 ET) – Ontario’s Ministry of Finance has announced that it bring provincial tax rules in line with federal rules to promote branch banking by foreign banks in Ontario.

“Following the enactment of the proposed federal legislation by the federal government, Ontario will introduce legislation to parallel, with necessary modifications, the federal tax rules and effective dates regarding foreign bank branches operating in Canada,” says the ministry.

The federal government proposed amendments back in August for the taxation of foreign banks that operate branches in Canada. The proposed tax rules will ensure that Canadian branches of foreign banks are taxed in a similar manner as Canadian subsidiaries of foreign banks and domestic banks.

The proposed special transitional tax rules will facilitate the conversion of foreign bank subsidiaries into branches.
-IE Staff