Ian Bradley, "Living with the Foreign Affiliate Dumping Rules", Canadian Tax Journal (2013) 61:4, 1147-66.

Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(10) - Paragraph 212.3(10)(c)
Group working capital management is problematic (p. 1164)

Multinational groups often optimize their cash management by pooling the excess cash...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(10) - Paragraph 212.3(10)(e)
Maturity date extension (p. 1159)

Finance has stated that the policy objective of this rule is to treat a term extension as a repayment and...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(11)
PLOI elections impracticable where cash pooling (p. 1166)

The PLOI filing obligations may cause practical difficulties in the context of the...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(15)
Deemed control acquisition on acquisition by indirect controller (p. 1154)

…For Example, one non-resident corporation ("NR 1") owns another...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(1)
Engagement of rules where investors pool through holding company (p. 1152)

Investments in Canadian corporations are often made by groups of...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(25) - Paragraph 212.3(25)(b)
Control by general partner (pp. 1152-3)

[P]aragraph 212.3(25)(b)…suggests that when applying the control test in subsection 212.3(1), CRIC...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(2)
Irreversibility of deemed dividend (p. 1155)

Unlike a PUC reduction, a deemed dividend cannot be reversed at a later date. In fact, withholding...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(7)
Insufficient PUC where deferred purchase price (p. 1156)

Timing issues can also occur if a CRIC purchases foreign affiliate shares and payment of...

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