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. 

Two and Out

PETERS: Lack of data doomed Eby government's decriminalization project

1h ago

SOUND OFF

SOUND OFF: David Eby must scrap his failed decriminalization experiment

May 02, 2024

One Man's Opinion

COLLINS: Lansdowne project a nightmare to deal with

May 02, 2024

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