The taxation of mergers and acquisitions in Canada

In considering the taxation of mergers and acquisitions in Canada, this article identifies the principal tax issues arising under the Income Tax Act regarding inbound and outbound merger and acquisition transactions in Canada. The article first discusses inbound investment - non-residents acquiring a Canadian company, including, among other things, the Canadian tax treatment of various methods of acquisition. The article then considers outbound investment - a Canadian company acquiring or selling the shares of a non-resident target corporation.