John Lorito, Trevor O'Brien, "International Finance – Cash Pooling Arrangements", 2014 Conference Report, (Canadian Tax Foundation), 20:1-33

Summary Under
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2.3)
Descripton of physical and notional cash pooling (pp. 2-3)

[I]n general terms there are essentially two types of cash pooling arrangements [fn 1:...

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Summary Under
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2)
Withholding based on net increase (p. 16)

If the shareholder loan rules apply to loans made by a Canadian resident corporation to a non-resident,...

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Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(5) - Specified Right
Specified rights (defined as tantamount to ownership) rarely granted to creditors except re cash collateral (p. 9)

[I]n simple terms, a specified...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.3)

Unavailability of s. 212(3.3) where Canco owes $50 to Netherlands intermediary, which owes $40 to Caymanco and $100 to USCo – because U.S....

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(10) - Paragraph 212.3(10)(c)
Cash pooling advances in the ordinary course (pp. 19-20)

[I]n…2013-0483751C6, the CRA commented that…the ordinary course of business exception...

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Summary Under
Tax Topics - Income Tax Act - Section 227 - Subsection 227(6.1)
Net decrease treated as repayment under cash pool (pp.16-17)

It is the position of the CRA [fn 52: …27 of IT-119R4…2006-021516117…and...

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Summary Under
Tax Topics - Income Tax Act - Section 261 - Subsection 261(21)
CRA relief where a cash pool head account has no presence in Canada and Canco has elected (p. 24)

Assume Canco…has elected to compute its...

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Summary Under
Tax Topics - Income Tax Act - Section 90 - Subsection 90(15)

Exclusion for loans to NR subs of related Canadian corporations (pp. 11-12)

Consider…the structure…in which BVCo 1 [a NR sub of the immediate...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Income from Property
Cash risked in active business (p.20:24-25)

Interest earned by a foreign affiliate on cash/deposits risked in the active business of the foreign...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(B)
Difficulties in establishing tracing in cash pool (p. 22)

It may be possible for interest earned by a foreign affiliate from deposits/loans made...

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