Things to know One of the most important considerations for a non-resident is whether to incorporate a Canadian subsidiary or to establish a branch operation.  A Canadian subsidiary of a non-resident corporation will be considered a resident of Canada for the purposes of the Income Tax Actand will be subject to Canadian income tax on […]

Things to know Thin-capitalization rules restrict the ability of Canadian corporations and trusts to deduct interest expense on debt owing to certain related non-residents. The thin-capitalization rules also apply to Canadian branches of foreign corporations.  Generally, thin-capitalization restrictions apply if the non-resident owns 25% or more of the shares of the debtor corporation (by vote […]

Things to know The branch profits tax applies to foreign corporations carrying on business in Canada through a “branch”, and is intended to replicate the withholding tax that would have been due had a Canadian subsidiary paid its profits to its non-resident parent in the form of a dividend.  A 25% tax is imposed on […]

Things to know Canada’s tax system is largely governed by the federal Income Tax Actand its regulations, as well by the sales tax, corporate tax and other laws of the provinces and territories. Residents of Canada are subject to tax on their worldwide income, while non-residents of Canada are generally subject to tax only on […]

Things to know Computer program provisions in Canada’s Anti-Spam Law (known as CASL) impose express (opt-in) consent rules on the installation of a computer program (including updates) another person’s laptop, smartphone, desktop, gaming console or other computing device.  It is prohibited for a website to automatically install software on a visitor’s computer without getting consent, […]

Things to know The Canadian Radio-television and Telecommunications Commission’s (CRTC) Unsolicited  Telecommunications Rules: restrict which consumer phone numbers telemarketers can contact for solicitation purposes. restrict calling hours.  prescribe information that must be disclosed.  restrict the use of Automatic Dialing-Announcing Devices (ADADs). impose record-keeping obligations. Active enforcement by the CRTC, including maximum fines of up to […]

Things to know Canada’s Anti-Spam Law (known as CASL) is likely the most comprehensive e-messaging law in the world.  CASL applies to “commercial electronic messages” (CEM), which is defined very broadly to include almost all email, SMS, instant messaging and at least some social media communications sent for a commercial purpose.  CASL applies to messages […]

Things to know Canadian privacy laws apply to the collection, use and disclosure of personal information through mobile apps.  Privacy regulators have issued detailed guidanceon how they expect app developers to overcome the challenges of small mobile device screens and the speed of the mobile app development cycle.  Mobile app developers have been targeted in […]

Things to know Canadian privacy regulators take the position that the information involved in tailoring ads for users based on their online activities or contact information generally constitutes personal information. Opt-out consent for online behavioural advertising (OBA) is generally considered reasonable, provided certain conditions are met. Things to do Provide notice to individuals at the […]

Things to know Private sector privacy laws permit organizations in Canada to transfer personal information to another jurisdiction for processing, but does impose conditions.  Public sector privacy laws in some provinces (British Columbia and Nova Scotia) prohibit personal information in the custody or control of public bodies from being stored or accessed outside of Canada, […]