Canada Clarifies and Expands Proposal for Equity Buyback Tax
Published on:
Apr 03, 2023
![Canada Clarifies and Expands Proposal for Equity Buyback Tax Image]()
Published by: Bennett & Jones
The 2023 Canadian Federal Budget, released March 28, 2023, provides particulars on the proposed new two percent tax on share buybacks and expands the proposal to apply to repurchases of equity by certain trusts and partnerships. If enacted, the proposed tax will apply to buybacks that occur on or after January 1, 2024. Covered entities should consider how the proposed tax will affect ongoing or proposed normal-course issuer bids, substantial issuer bids, and other equity buybacks
