U.S. tax reform to bring double taxation to some Canadians – Financial Post

Paul Seraganian

Feb 6, 2018

Osler partner Paul Seraganian tells Financial Post that the “behaviour of U.S. capital” is one consequence of U.S. tax reform that has not garnered the attention it warrants. In the article, author Julius Melnitzer explores how some provisions contained in the U.S. Tax Cuts and Jobs Act, including the “transition tax” could have consequences for Canadians. Paul, a tax expert and Managing Partner of Osler’s New York Office, explains.

“The one thing that hasn’t got enough attention is the behaviour of U.S. capital and what choices it will make about investing,” Paul tells Financial Post.

Paul says that’s particularly important for when the non-resource portion of the Canadian economy is looking for capital.

“Tax reform has dealt these sources a set of cards that will change conventional thinking, to the detriment of Canadians’ ability to attract capital,” Paul tells Financial Post.

He adds: “The ‘inversion’ wave we saw was driven by the fact that, from a tax perspective, it was better for the parent company to be a foreign company rather than a U.S. company,” Paul says. “But tax reform has made that thinking a lot more choppy by creating a host of reasons that favour having U.S. parents.”

If you subscribe to Financial Post online, read Julius Melnitzer’s article “U.S. tax reform to bring double taxation to some Canadians.”