elliot_mllr

2011, A Canadian Tax Odyssey: Canadian Income Trust Investors' Guide

I am afraid that there is a perfect rationale for both the 30% tax at the entity level and still the 15% withholding tax on the dividends. After all, the US a charges a tax on dividends of C corporations even after it has exacted up to 35% of the company's profits at the entity level.


On Apr 02 10:59 AM Cliff Wachtel wrote:

> Exactly my question, to which I've yet to get a clear answer. As
> of now, there is no tax at entity level, and Canada w/hs 15% for
> foreign unit holders. Now there's already going to be tax at entity
> level, so will Canada continue to w/h another 15% on top of the the
> entity level tax? Or is the w/h no longer needed? I wasn't able to
> get a clear answer as of the time of writing.
>
> Until I hear otherwise, I assume that Canada will be happy with the
> nearly 30% tax at entity level that all unit holders now bear and
> will not, in additon, w/h another 15% unless they truly don't want
> foreign unit holders. It would be butt stupid to do so, but then
> again, so is the entire "reform" so nothing would shock me, sorry
> to say.
>
> In sum, I don't know. Hope to find out, or hear from my esteemed
> readers, one of whom I hope has gotten clarification.