Leila Ross

A part of the new U.S. tax bill (Section 899) holds potentially sweeping implications for Canadian investments in the United States. Leila Ross from BMO Global Asset Management joins Bipan to break down what the current proposals are, their possible impact on Canadians, and what could change before the legislation is passed. This podcast was recorded live on June 17, 2025.

Overview: Proposed under the ​“One Big Beautiful Bill” currently working its way through the legislative process in the U.S., Section 899 is drafted with the intent to increase U.S. taxes in several ways which could be relevant to Canadian investors.

Who is caught in proposed Section 899: The legislation is aimed at nations that the U.S. deems to have enacted unfair tax laws aimed at Americans. While there are a number of heads of enumerated ​“unfair foreign taxes,” Canada is pulled into the fray in large part by virtue of our digital services tax, a 3% tax aimed at multi-national corporations with digital services revenues exceeding $20M that access the Canadian marketplace. Think, for example, of companies like Meta Platforms Inc.