Joint Committee, "Technical Amendments Package of September 16, 2016", Submission letter of 15 November 2016

Only extends to shares of Cancos

Ss. 87(8.4) and (8.5) in the 16 September 2016 draft legislation provide a tax deferral only for shares of...

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No relief where upstream lender ceases to be an FA

The proposed continuity rules in ss. 90(6.1) and (6.11) do not provide relief from an income...

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Safe harbour does not extend to upper tier hybrid partnerships

Similarly to draft s. 91(4.5), the exceptions in ss. 91(4.6)(b) and 126(4.12)(b)...

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Recognition should be based on PP rather than SEP changes

The triggering event for a stub period under s. 91(1.2) should be a change in the...

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Otherwise de minimis changes effectively are linked to another change not part of the series

The de minimis exception in s. 91(1.1)(b) does not...

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Excluded property test not appropriate

It would be preferable for the rules in ss. 91(1.4) and (1.5) to apply by default, with taxpayers being...

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Exclusion of arm’s length purchase from NR inappropriate if carve-out rule unavailable

The unavailability of s. 91(1.5) (allowing a purchaser to...

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Expansion of s. 212.3(2)(a) to “other Canadian corporations”

S. 212.3(2)(a) is being expanded to investments other than by a CRIC in its own...

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Penal consequences of not filing

A late-filing dividend under s. 212.3(7)(d) is not eligible for the dividend substitution election under s. 212.3(3)

Effect on look-through rule interpretation

The addition of s. 212.3(18)(b)(viii) may imply that a broader range of transfers are not capable of...

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Partial reinstatements

The formula in s. 212.3(9)(b)(i) can operate to under-reinstate PUC.

Tainting effect of minor previous reinstatements

The condition in s. 219.1(3)(c) is too restrictive because any amount of previous reinstatement...

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The draft DFA amendment erroneously refers to an obligation that is “capital property” rather than an “obligation.”

Adverse implication re convertible shares

The proposed addition of Reg. 6204(1)(b)(iv) seems to imply that a convertible voting share would not be...

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