Marie-Andrée Beaudry, Dean Kraus, "Selected Income Tax Considerations in the Court-Approved Debt Restructurings and Liquidations", 2015 Annual CTF Conference paper

Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(13)

Requirement to use related person’s tax attributes on s. 80.04 designation (p. 13:9)

Further considerations arise when a debtor seeks to make a...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(h)

Changes that reduce debt FMV (p. 13:7)

[C]hanges to certain terms of a debt, such as interest rates and payment schedules, should not lead to a...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(4)

Generation of net capital losses (NCLs) to absorb forgiven amount (p. 13:11)

Another common tax planning theme…is to trigger any embedded...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)

Wind-up of subsidiary (Subco) immediately before CCAA compromise to insulate its non-capital losses (“NOLs”) from s. 80 (p. 13:16)

The winding...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c)

Non-deductibility of post-CCAA-stay interest (p. 13:29)

[C]reditors are only prevented under the CCAA stay from enforcing the debtor company's...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(e)

CCAA Stay does not generate a s. 18(1)(e) contingency (p. 13:32)

[W]hile a stay under the CCAA stays proceedings with respect to damage claims,...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation

Whether forgiven amount arises on settlement of contractual claims (pp. 13:34-13:35)

In addition to the issue of deductibility of claims for...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 224.1

Limitations on CRA compensation (set-off) rights (p. 13:36)

While Revenu Québec followed the decision in DIMS Construction [fn 111: …2005 SCC...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Summary Under
Tax Topics - Income Tax Act - Section 222 - Subsection 222(2)

Stay of assessment in CCAA proceedings (p. 13:38)

In…Girard, the Québec Court of Appeal concluded that a notice of assessment or reassessment...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Words and Phrases
proceeding