Canada enacts changes to the U.S.-Canada tax treaty

New protocol will provide mutual tax recognition of pension contributions on either side of the border
By
|hrreporter.com|Last Updated: 01/08/2008

Changes to the United States-Canada Income Tax Convention have received royal assent. The changes, called the fifth protocol, will come into effect once they have been ratified by the U.S., said Minister of Finance Jim Flaherty.

“Modernizing this long-standing treaty will encourage further trade and investment in Canada and the United States and help us to better compete in the global economy,” said Flaherty.

“I am hopeful that the U.S. will soon ratify the protocol so that individuals and businesses on both sides of the border, including manufacturers, can realize the significant benefits of the updated treaty.”