Canada: Withholding Tax

The dissolution of a corporation creates confusion regarding its tax filing obligations. The question often boils down to: Does a dissolved corporation need to be legally revived to file outstanding tax returns with the Canada Revenue Agency?

Cross‑border tax planning typically assumes that if you structure legal agreements correctly and satisfy a tax treaty’s wording, a reduced withholding rate will follow where applicable. Husky Energy Inc.’s (“Husky”) fight with the Canada Revenue Agency suggests that assumption may no longer be safe.

La planification fiscale transfrontalière repose généralement sur l'hypothèse selon laquelle, si les conventions juridiques sont structurées correctement et que le libellé d'une convention fiscale est respecté, un taux réduit de retenue à la source s'appliquera, le cas échéant. Le litige opposant Husky Energy Inc. (« Husky ») à l'Agence du revenu du Canada montre que cette hypothèse n'est peut-être plus valable.

Canada has one of the most highly educated and skilled workforces in the world. This combined with free healthcare and accessible childcare rates makes Canada one of the most attractive regulatory regimes to set up shop.

À l'occasion de notre récente tournée, Perspectives fiscales de McCarthy Tétrault, des intervenants du groupe national de droit fiscal de McCarthy Tétrault...

On April 22, 2025, the Judicial Committee of the UK Privy Council released its decision in Methanex Trinidad v. Board of Inland Revenue ([2025] UKPC 20).

There are several options available when doing business in Canada. The choice of structure is generally dictated by a number of factors, based mainly on tax and liability considerations. The most used structures are:

Since the COVID-19 Pandemic, the shift to remote work has transformed the employment landscape in Canada. It is estimated that about 40% of Canadians either work completely remotely or follow a hybrid arrangement.

The 2025 EY Global Tax Policy and Controversy Outlook explores changing global tax policies and what businesses need to consider.