International Taxation (LAW349H1F)

International taxation is a paramount concern for cross-border trade and investment activities in a globalized economy.  Many transactions have cross-border elements that engage the international tax aspects of Canada's income tax system.  Moreover, the emergence of globally dominant digital businesses and international profit shifting opportunities have prompted recent attempts at international tax reform that remain controversial and incomplete. 

This course provides students with an opportunity to study Canada’s international tax rules in this contemporary global context.  We will examine the tax policy reflected in, and practical application of, the Canadian income tax rules applicable to cross-border commercial activities, including residence of taxpayers and jurisdiction to tax, taxation of Canadian-source income of non-residents, taxation of foreign-source income of Canadian residents and controlled foreign corporations (including foreign tax credits, the foreign affiliate system, and the FAPI rules), the implications of Canada’s tax treaties, and Canada's international tax anti-avoidance measures.  

In addition, we will discuss recent OECD initiatives including the "Pillar One" proposals for re-allocating income to source countries and the "Pillar Two" global minimum tax regime, and current UN efforts to propose alternative international tax arrangements more favourable to developing countries.  We will assess Canada's responses through the recently enacted Digital Services Tax Act and the Global Minimum Tax Act. 

The course will assume students understand the introductory tax principles covered in Canadian Income Tax Law which is recommended as a pre-requisite, but may be taken concurrently as a co-requisite if students are prepared to accelerate their learning of those tax fundamentals.