taxpayers can delay flow-through share reporting under the look-back rule in reliance on the CODID-related proposed amendments
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Principal Issues: Whether the CRA will administer the ITA on the basis of the proposed amendments to the ITA to extend the timelines for corporations that have issued flow-through shares to incur the CEE or CDE renounced under those flow-through shares.
Position: Yes.
Reasons: Consistent with prior published positions.
Submitted by narmstrong on Fri, 01/08/2021 - 03:19
no relief where there are COVID-related delays in meeting the deadline of realizing a loss for s. 164(6) carryback within an estate’s first taxation year
Would CRA allow more time for the application of s. 164(6), given that delays in the probate process may delay the timing of the disposition of...
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Principal Issues: Will the CRA allow more time for the application of subsection 164(6) for loss carrybacks by an estate?
Position: The CRA is unable to extend the disposition time limit.
Submitted by narmstrong on Thu, 01/07/2021 - 02:20
amending a foreign-law debt to transition to RFRs is a disposition only if there is discharge and substitution under that law
A number of jurisdictions have been working on developing risk-free-rates (RFRs) to replace the existing interbank offering rates (IBORs) used as...
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Principal Issues: Whether a change in benchmark rate from an Interbank Offering Rate (IBOR) to a Risk-Free-Rate (RFR) in a financial instrument could result in a disposition under the Income Tax Act.
Position: The law. Factual determination. Generally, such change, in and of itself, would not result in a disposition. Whether a disposition occurs can be determined only after a review of the facts and circumstances and based on the law that governs a financial instrument.
Reasons: Whether changes to the terms of a financial product result in a disposition depends on the facts and circumstances and the law that governs the financial product.
