Investing with a Foreign Broker and Buying Canadian Shares

Foreign brokers can attract Canadian investors, perhaps because of low management fees. The foreign broker may purchase some Canadian shares (either on a foreign exchange or on the TSX). These shares should be treated as Canadian for the purposes of dividend tax credits and foreign tax credits (FTCs), but as foreign for the purpose of form T1135 filings; this counterintuitive treatment can lead to errors…

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Cadesky Tax