Canada proposes income tax amendments.

The article details the Notice of Ways and Means motion to implement proposed amendments to the Income Tax Act. Section 212 of the proposed amendments from the Canadian Department of Finance will exempt from Canadian withholding tax any interest payments that a Canadian payer makes to a non-resident recipient with whom the payer deals at arm's length. Section 18.2 will introduce a limit on the deductibility of certain interest and other financing expenses. Section 261 will contain rules governing the possibility for a Canadian corporation to determine its Canadian tax results using a functional currency.