Foreign Investment in Canada

"Canadian investment abroad has been the focus of considerable attention in recent years. Canadian mining companies have been heavy investors in Latin America and are taking a hard look at Central Asia and the Pacific Rim. This international flow of capital is not one-way however. Foreign mining companies continue to make substantial investments in Canada's mining industry. This month. Tax Notes addresses some of the main Canadian income tax implications of foreign investment in Canada.Foreign Investment in CanadaThere are two basic forms of foreign investment in a Canadian company: share capital and debt. The following comments deal with each of these investments separately. It is appreciated that the relevant tax legislation is, as always, quite complex, and that the notes that follow are intended only to serve as a guide. This article should not be relied on as a substitute for professional advice."