Steve Suarez, "Canada's 88(1)(d) Tax Cost Bump: A Guide for Foreign Purchasers", Tax Notes International, December 9, 2013, p. 935

Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(9)
Use of s. 88(1)(d) in buy, bump and sell transactions (p. 937)

The introduction of the foreign affiliate dumping (FAD) rules in 2012 makes the...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(v)
Purpose of anti-stuffing rule in s

88(1)(c)(v) (p. 942)

Another rule is meant to prevent the parent from transferring property with accrued gains...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(vi)
Policy of bump denial rules (p. 946)

The policy behind the bump denial rule is deceptively simple: The parent should not be able to buy and wind...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c.2) - Subparagraph 88(1)(c.2)(i)
Examples of prohibited persons (pp. 947-8)

The most useful way to illustrate the wide range of potential prohibited persons is by using the...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c.3) - Subparagraph 88(1)(c.3)(i)
10%-plus properties as prohibited property (p. 951)

2. Property Deriving More Than 10 Percent of Its FMV From Distributed Property Post-AOC...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c)
Changes to directly-held properties before acquisition of control ("AOC") (p. 941)

The requirement [in the midamble of s. 88(1)(c)] that eligible...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(ii.1)
Summary of s. 88(1)(d)(ii.1)

… Expressed conceptually, the FMV of the partnership interest is deemed to be reduced by an amount representing...

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Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(ii)
Buy, bump and sell transactions of foreign acquirer (p. 937)

The introduction of the foreign affiliate dumping (FAD) rules in 2012 makes the...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 5905 - Subsection 5905(5.4)
General summary of bump limitation rule (p. 945)

…When control is acquired of a Canadian corporation that owns shares of a foreign affiliate,...

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