Joint Committee releases its submissions on the B2B and s. 152(9) rules

In addition to reiterating its recommendations from its July 25, 2016 submission on the back-to-back (B2B) rules (now reflected in the July 29 draft legislation), the Joint Committee has now provided various examples of technical glitches which already have emerged respecting the duplicative application of s. 15(2), a failure of s. 212(3.6)(a) to properly distinguish shares of a relevant funder that are intended to be captured by the character substitution rule from those which are not (and also problems with the somewhat similar language of s. 212(3.92)(a)), problems with the interaction with the s. 216 rules (which could simply be addressed by exempting rental payments which are subject to s. 216 treatment) and problems for some types of cross-border securitization arrangements.

The Joint Committee has also separately submitted that the s. 152(9) draft legislation should not extend to, in effect, permitting new assessments beyond the normal reassessment period (where the waiver and misrepresentations exceptions do not apply).

27 September 2016 Joint Committee Submission on the B2B rules and 27 September 2016 Joint Committee Submission on s. 152(9) draft legislation.