Budget closes loophole for financial institutions trading in dividend stocks

Budget closes loophole for financial institutions trading in dividend stocks

The federal government plans to tweak tax laws to remove the breaks given to big financial institutions that are benefiting from complicated hedging strategies on dividend-paying stocks. The budget released Thursday calls it the “double-deduction loophole,” which allows some Canadian financial institutions to use “hedging and short selling arrangements in aggressive tax planning strategies.” By … Read more