Canada Pillar Two Proposal May Lead to Double Tax, Advisers Warn

Canada’s proposal for imposing a global minimum tax spells uncertainty for companies’ tax bills and could drastically increase their tax compliance workload, tax lawyers and accountants said.

The draft Global Minimum Tax Act lacks guidance in areas critical for multinationals’ understanding of their tax treatment, including how the proposed bill would interact with existing tax rules and how future changes to global tax norms will be implemented under domestic law, according to practitioners preparing submissions for the federal government.

“It is concerning because companies are going to need to know what taxes are owing,” Patrick Marley, partner and co-chair of ...