Cases
Groupe Honco Inc. v. Canada, 2014 DTC 5006, 2013 FCA 128, aff'g 2013 DTC 1032 [at 149], 2012 TCC 305, infra
Trudel JA stated (at para. 24) that:
[C]ounsel for the appellants is ignoring the purpose and spirit of subsection 83(2.1) of the Act in...
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | sometimes elapsed time will be relevant to series determination | 194 |
See Also
Travel Document Service & Ladbroke Group International v Revenue & Customs (Rev 1), [2018] EWCA Civ 549
A British taxpayer (TDS) used a total return swap to cause its share investment in a subsidiary (LGI) to be deemed to be a loan. However, its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | where an anti-avoidance provision’s application depended on the purpose of being a creditor, that purpose was the one for holding shares which were a deemed loan | 379 |
Groupe Honco Inc v. The Queen, 2013 DTC 1032 [at 149], 2012 TCC 305, aff'd 2013 FCA 128, supra
On January 13, 1999, a newly-incorporated corporation ("New Supervac") was leased the assets of an unrelated corporation ("Old Supervac"), coupled...
Barclays Mercantile Industrial Finance Ltd. v. Melluish, [1990] BTC 209 (Ch. D.)
The taxpayer ("BMI") acquired a film from a non-resident corporation ("WBI"), leased it to another corporation at a return that yielded 2.16% per...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 136 | |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | 240 | |
| Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(17) | no "lease" where failure to provide exclusive possession | 75 |
Administrative Policy
7 October 2020 APFF Roundtable Q. 8, 2020-0852201C6 F - Acheminement du CDC / CDA Streaming
ACO (a CCPC) has three corporate shareholders, each holding 10 Class A common shares in its capital: BCO (exempt under s. 149(1)); CCO (a...
7 October 2020 APFF Roundtable Q. 7, 2020-0852191C6 F - Capital dividend and series of shares
CRA confirmed that since s. 248(6) requires a series of shares to be treated as a separate class, a capital dividend could be paid by a private...
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| Tax Topics - Income Tax Act - Section 83 - Subsection 83(2) | capital dividends can be paid on one series and not the other | 235 |
9 November 2017 External T.I. 2017-0704221E5 - Capital Dividend Account
Canco was the owner and beneficiary of a life insurance policy, with an adjusted cost basis of nil, on the life of its sole shareholder, Mr. X....
2016 Ruling 2015-0624611R3 - Capital Dividend Account
An estate sold a private company (Canco 1) to a third party purchaser, which promptly amalgamated with Canco 1. To the surprise of the estate, the...
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| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (d) | proceeds of predecessor’s policy added to Amalco’s CDA when received | 182 |
S3-F2-C1 - Capital Dividends
Main reason test
1.95 ... Groupe Honco...confirmed that a person can have more than one main reason for the acquisition of shares. If subsection...
11 January 1994 External T.I. 9334235 F - CDA Anti Avoidance Rules
Where the shares of a corporation ("Opco") having a capital dividend account are transferred by a related individual to a newly-incorporated...
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| Tax Topics - Income Tax Act - Section 83 - Subsection 83(2.4) | 72 |
29 June 2009 External T.I. 2008-0296371E5 F - Capital dividends
An estate owns all the shares of Corporation A, which has a capital dividend account (CDA) and refundable dividend tax on hand account (RDTOH) but...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1.2) | s. 87(2)(aa) would apply to eliminate RDTOH of predecessor given the absence of an s. 83(2.4) equivalent to exempt the predecessor’s notional dividend | 203 |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) | s. 87(2)(z.1) would apply to eliminate CDA of predecessor if the s. 83(2.4) exceptions did not prevent the application of s. 83(2.1) to the notional dividend paid by that predecessor | 266 |
IT-66R6 "Capital Dividends"
Articles
Michael McGowan, "HMRC v Lloyds Bank Leasing (No 1) Ltd: the troublesome increase in the scope of the "sole or main object" test", [2015] British Tax Review, No.5 2015 (Thomson Reuters (Professional) UK Limited), p. 649
Following the Lloyd Bank decisions ([2014] EWCA Civ 1062, remitted to [2015] UKFTT 401) dealing with an anti-avoidance provision which was engaged...
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| Tax Topics - General Concepts - Purpose/Intention | 644 |
Nathan Boidman, Canadian Tax Highlights, Vol. 22, No. 5, May 2014, p. 9.
Prevalence of "one of the main purposes" test (p. 9)
The phrase "one of the main purposes" (or "one of the main reasons," "one of the main...