hybrid post-mortem 164(6)/pipeline transactions with 10% per quarter redemptions following 12 months
396
Principal Issues: 1. Whether section 84.1 will apply to deem the Estate to have received a dividend from Newco, on the disposition of its Opco shares. 2. Whether section 84.1 will apply to cause a reduction in the PUC of the Newco shares received by the Estate, on the disposition of its Opco shares. 3. Whether subsection 84(2) applies to the Proposed Transactions. 4. Whether GAAR applies to the Proposed Transactions.
Principal Issues: (1) Whether two societies, a public foundation that is a registered charity and a non-profit organization, both established under the XXXXXXXXXX, be considered to have disposed of their assets on their amalgamation to create a new society? (2) Whether members of the amalgamating societies will be considered to have realized income or capital gain or to have received a benefit pursuant to subsections 15(1), 56(2) or 246(1)? (3) Whether the new society will be a registered charity and could have the same business number and charity number as the previous one?
Reasons: (1) There is no disposition of assets since the new society will be the continuity of the previous societies under the XXXXXXXXXX and the cost and cost amounts will be transferred to the new society. (2) The new society is the continuity of the previous ones and the members are not allowed to receive dividends or property from both the previous societies and the new one. (3) It is not the mandate of the Income Tax Rulings Directorate to confirm the registration of a charity nor to issue a business or charity number.
Submitted by narmstrong on Wed, 03/13/2019 - 01:39
somewhat fast pipeline (12 months/15% per quarter) for a company with a marketable securities “business”
Background
On A’s death, he owned appreciated common and redeemable retractable preference shares and a non-interest-bearing demand promissory...
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Principal Issues: 1. Does paragraph 84.1(1)(b) deem a dividend in the Proposed Transactions? 2. Does subsection 84(2) apply to the Proposed Transactions? 3. Does the GAAR apply to the Proposed Transactions?
