Bloomberg, "Canada Plans to Limit Input Tax Credits for Holding Companies"
The Canadian government has proposed limiting the amount holding companies can recover from value-added and sales tax they pay on goods and services purchased for an operating subsidiary. […]
This will have limited application to foreign multinationals, as it only applies if the parent is resident in Canada and a GST/HST registrant, Ron Choudhury, a partner in the Toronto office of Miller Thomson LLP and national lead for the firm’s sales tax specialty group said. […]
The change would make sure that appeals of demands by the Canada Revenue Agency for foreign-based information or documents from a taxpayer’s foreign parent aren’t used to exhaust limitation periods for assessments and reassessments, Montreal tax lawyer Andrew Etcovitch said.