Canada relaxes tax rules on non-resident share sales
Following the recent Federal budget, foreign investors face less red tape when selling shares in private Canadian companies. This move is expected to make new venture capital investments in Canada more attractive.In the past, a non-resident seller was forced to provide the buyer with a clearance from Revenue Canada that either Canadian capital gains tax had been paid or any gains were not taxable in Canada according to the Canada-US tax treaty. That application process could sometimes take up to a year and until that clearance was provided, the sale proceeds were often held in escrow. If the proceeds were payable in shares, their value could decline while the seller waited for a clearance certificate. The new rules exempt sales of private company and some public company shares, unless more than half the share value is derived real estate or natural resources. The change took effect March 4, 2010.
Changing Face of Family Business in the Gulf
2 February 2010
The problems faced by any organisation and company; developing successful leaders, mitigating decision-making hierarchies and consolidating company tradition with new generational ideas, are undoubtedly issues that can be magnified in the setting of the family business.
