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A new 2% tax on share buybacks unveiled by Prime Minister Justin Trudeaus government wont be a huge deterrent to companies looking to repurchase modest quantities of shares at reasonable multiples, according to

Canadian Imperial Bank of Commerce — but it could carry a sting for others.

Whats more, because the tax doesnt take effect until January 2024, it may actually lead to a flurry of larger buybacks between now and then, Ian de Verteuil, a managing director at the bank, wrote in a research note.

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