Near the end of March 2007, Canadian Finance Minister Jim Flaherty outlined a 2007 federal budget proposing a variety of tax changes that could have major implications, both good and bad, for cross–border M&A and private equity.
The biggest change was making interest on debt used to acquire foreign affiliates will no longer be tax deductible. This will make cross-border M&A more difficult. He also introduced several measures to make M&A deals easier, such as recognizing the LLC entity. We'll see how this plays out.
Submitted: Jul 27, 2007
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