Finding Silver Linings in the Storm : An Evaluation of Recent Canada-US Crossborder Tax Developments

Recently, a storm of activity has swirled around rules governing the tax treatment of Canada-US crossborder investment. The high degree of integration of the Canadian and US economies means that the economic effects of such tax changes can be significant. This paper reviews and evaluates a number of recent developments, including revisions to the Canada-US tax treaty and ongoing Canadian efforts to engage in corporate income tax competition with the United States. Further crossborder tax reforms are suggested to reduce undue restrictions on, or distortions of, crossborder investment