Chris Falk, Stefanie Morand, Brian O'Neill, "Is there Always Certainty Regarding Tax Basis? – Limitations on Expenditures Pursuant to Sections 143.3 and 143.4", 2014 Conference Report, (Canadian Tax Foundation),14:1-36

Summary Under
Tax Topics - Income Tax Act - Section 143.3 - Subsection 143.3(2)
Denial of cost of property acquired with options (p. 14:7)

[O]ne of the effects of section 143.3 is that the issuer will not have any cost for...

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Summary Under
Tax Topics - Income Tax Act - Section 143.3 - Subsection 143.3(3) - Paragraph 143.3(3)(a)
Whether share issuance for debt cancellation entails ‘property transferred…to" the corporation (p. 9)

In the context of subsections 143.3(3)...

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Summary Under
Tax Topics - Income Tax Act - Section 143.3 - Subsection 143.3(5) - Paragraph 143.3(5)(b)
Excess is of cost over FMV (p. 6)

Implicit in the [Finance] technical note statements is the assumption that, for purposes of paragraph...

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Summary Under
Tax Topics - Income Tax Act - Section 143.4 - Subsection 143.4(2)
No grind if up-front payment (p. 19)

Assume, for example that:

  • Taxpayer A purchases capital property from Taxpayer B in exchange for $100,...

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Summary Under
Tax Topics - Income Tax Act - Section 143.4 - Subsection 143.4(4)
Harshness of s. 12(1)(x) inclusion (pp. 19-20)

[T]he consequences of the paragraph 12(l)(x) regime may seem especially harsh and problematic if...

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