A banking source complained that, even if BMO had the cash to do the deal, a new measure in the federal budget that removes a tax deduction for companies expanding abroad would make it less attractive.
The extra federal tax on a $21-billion deal would be hundreds of millions of dollars per year, said one accountant who asked not to be named.
Tuesday, April 24, 2007
Government against Foriegn Investment by Canadian Companies
In today's ROB about a European banking merger, Europe's Mega Banking Deal, in its implications for Canadian Bank ambitions there is this odd detail. It is now more expensive from a tax perspective for Canadian Companies to buy foreign companies than the other way around. Why?