ANALYSIS of the 2010 FEDERAL BUDGET

REMOVAL OF SECTION 116 - OPENS DOOR TO FLOW OF FOREIGN CAPITAL FOR BIOTECH

For the biotechnology industry, the big “win” in this year's federal budget was the removal of section 116(Canada-US Tax Treaty). A long-time priority and advocacy project for BIOTECanada, the removal of the section will mean investors such as non-resident venture capital funds will no longer need to file Canadian tax returns on top of their US tax returns, or fill out section 116 certificates upon exit. BIOTECanada anticipates this change will open the doors for investment into Canadian biotechnology firms, and signals an “open for business” attitude by our government.

OTHER ANALYSES

Section 116
2010 Federal Budget