By Canadian Press

Taxing corporate share buybacks unlikely to boost investment in operations: experts

Nov 8, 2022 | 10:23 AM

OTTAWA — Experts say the federal government’s proposed corporate share buyback tax is unlikely to encourage companies to spend more on growing their operations. 

In last week’s mid-year budget update, the Liberals committed to imposing a two per cent tax on stock buybacks that would go into effect in 2024. 

Finance Minister Chrystia Freeland says the measure is meant to encourage companies to invest their profits in their operations and workers. 

Rick Robertson, a professor emeritus at Western University’s Ivey School of Business, says the new tax might be politically popular. 

But he doesn’t expect it to encourage corporate investment. 

vehicle damage

Over 40 vehicles damaged during late-night Nanaimo vandalism spree

1h ago

rising costs

RDN taxpayers want relief as board grapples with budget

6h ago

new mayor

Spring Mayoral by-election called in Ladysmith

19h ago

He says companies will still want to reward shareholders when profits are strong and can opt to give out one-time dividends instead.

This report by The Canadian Press was first published Nov. 8, 2022. 

The Canadian Press