See Also
Deuce Holdings Ltd. v. The Queen, 97 DTC 921, [1998] 1 CTC 2550 (TCC)
With respect to a divisive reorganization which entailed the receipt by the taxpayer both of a cash dividend and a deemed dividend, Bell TCJ....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | safe income on hand reduced by taxes, but not by inchoate retiring allowance | 54 |
Administrative Policy
30 November 1996 Ruling 9710373 - PUBLIC COMPANY SPIN-OFF
Favourable rulings given with respect to public company spin-off transactions.
1996 Corporate Management Tax Conference Round Table, Q. 16
"The 'reorganization' referred to in section 55 would normally include only transfers of property by the distributing corporation to its...
1996 Corporate Management Tax Conference Round Table, Q. 19 (C.T.O. "Butterflies - Tolerance Levels")
"The word 'approximate' provides limited scope for discrepancies ... . In 1991 we indicated that, for purposes of advance rulings, we are...
30 November 1995 Ruling 9634883 - PUBLIC COMPANY BUTTERFLY
Favourable ruling given on public company butterfly.
93 C.R. - Q. 13
A distribution to all shareholders that does not include all the assets of a particular type owned by the distributing corporation will not comply...
11 November 1993 Memorandum (Tax Window, No. 30, p. 3, ¶2482)
Where a corporation (A) is owned equally by three shareholders who deal with one another at arm's length and do not act in concert amalgamates...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(3.1) | 74 |
8 April 1993 T.I. (Tax Window, No. 30, p. 19, ¶2502)
An acquisition of property will not normally be considered to have occurred in contemplation of a butterfly reorganization where the acquisition...
13 January 1993 T.I. 922909 (November 1993 Access Letter, p. 496, ¶C38-180)
Discussion of availability of exemption, and of meaning of "reorganization", where a corporation transfers its shares of a wholly-owned subsidiary...
25 August 1992 T.I. (Tax Window, No. 23, p. 6, ¶2133)
RC will apply the look-through approach to a general partnership interest but not to a limited partnership interest. Accordingly, where Holdco...
Tax Professionals Mini Round Table - Vancouver - Q. 3 (March 1993 Access Letter, p. 101)
Where property of a particular corporation is transferred to a wholly-owned subsidiary of a corporate shareholder, the subsidiary must be wound-up...
26 November 1992 Memorandum (Tax Window, No. 27, p. 13, ¶2351)
RC's position that property received by a corporation on a winding-up of a partnership prior to the butterfly reorganization will not nullify the...
31 August 1992 Memorandum (Tax Window, No. 24, p. 3, ¶2191)
The use of s. 55(3)(b) to effect a transfer of assets deriving their value principally from real estate in the guise of a treaty-protected share...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 37 |
92 CR - Q.30
A faulty evaluation of distributed assets for purposes of attempting to comply with the requisite proportions set out in s. 55(3)(b) will not be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | 19 |
92 C.R. - Q25
Even if the decision in The Queen v. Guaranty Properties, 90 D.T.C 6363 stands for the proposition that an amalgamating corporation does not cease...
17 July 1992 External T.I. 5-913100
The pro rata test in s. 55(3)(b) will be met if, following the transfer of the required percentage of property by the particular corporation to...
5 July 1991 Memorandum (Tax Window, No. 5, p. 18, ¶1338)
A favourable ruling will not be given in respect of a partial butterfly unless the ACB of the shares of the particular corporation are reduced by...
11 April 1991 T.I. (Tax Window, No. 2, p. 19, ¶1199)
GIC's which are current assets capable of reasonably prompt liquidation generally will be considered to be cash or near-cash assets.
27 December 1990 T.I. (Tax Window, Prelim. No. 2, p. 6, ¶1058)
Where on the dissolution of a partnership each partner's share of the distributed property is a proportionate interest in the specific items of...
19 April 1990 T.I. (September 1990 Access Letter, ¶1416)
Where in contemplation of a transfer of property to its shareholders in a butterfly reorganization a partnership of which the particular...
Hiltz, "The Butterfly Reorganization
Revenue Canada's Approach", 1989 Conference Report, p. 20:32.
Read, "Section 55
A Review of Current Issues", 1988 Conference Report, c. 18.
89 C.M.TC - Q.16
Real estate used partially in an active business and partially in a specified investment business will generally constitute two types of property.
89 C.M.TC - Q.17
RC will not only rule on a butterfly reorganization carried out on a gross asset basis, but will also accept the net equity method if the...
87 C.R. - Q.57
The transfer of all one type of property to the shareholders may qualify where the ACB of the shares of the transferor is reduced appropriately.
87 C.R. - Q.56
Although property distributed by way of dividend in a butterfly reorganization is subject to the proportionate sharing rules, preferred shares may...
ATR-47, February 24, 1992
Description of an estate thaw butterfly entailing the transfer of real estate by the estate freeze corporation to a corporation whose common...
Hiltz, "Section 55: An Update" 1984 Corporate Management Tax Conference Report, p. 40.
Articles
Firoz Ahmed, "Return of the Somersault", Canadian Current Tax, Vol. 11, No. 1, October 2000, p. 1.
Sider, "Corporate Reorganizations: A Review of a Divestiture", 1993 Conference Report, c. 14
Review of the spin-off of certain divisions of Ocelot Energy Inc.