CANADA: O.K. to Buy U.S.

A sore point in Canadian-U.S. relations in recent years has been the reluctance of U.S. firms to let Canadian investors buy stock in their profitable Canadian subsidiaries. Largely responsible for the aggravation was a kink in the tax agreements between the two countries. A Canadian subsidiary that was 95% U.S.-owned paid only a 5% tax on the dividends it remitted to the parent company in the U.S. If the proportion of U.S. ownership dropped below 95%, the dividend tax rose to 15%. Rather than have dividend taxes tripled, U.S. companies shied away from selling stock to Canadians.

Last week the...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!