Sabrina Wong, Sania Ilahi, "Tax Implications of Asset Securitizations", 2015 CTF Annual Conference Report

Summary Under
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(16)

Most commonly-used lease securitization structure: drop-down to LP (pp. 12:4)

In the most commonly used lease securitization structure in the last...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) - Paragraph 1100(2.2)(f)

Non-application of half-year rule on drop-down from lease originator to LP if not inventory (p.12:10)

This exception to the half-year rule may...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(b)

Co-ownership structure for mortgage securitizations (p. 12:14)

The securitization of mortgages has often been structured as the sale by an SPE...

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Summary Under
Tax Topics - Income Tax Act - Section 12 - Subsection 12(9.1)

Carve-out re interest coupons received (or reversal of PDO overaccrual) in a mortgage securitization structure (p. 12:17)

The application of...

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Summary Under
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service

Quiescence of CRA post-Canada Trustco (p. 12:21)

No significant assessments have come to light in connection with the treatment of the servicing...

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Summary Under
Tax Topics - Income Tax Act - Section 9 - Computation of Profit

Typical structure of a trade receivables securitization (pp. 12:21)

[In] [t]he typical structure of a trade receivable securitization…the seller...

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Summary Under
Tax Topics - Excise Tax Act - Section 222 - Subsection 222(1)

Potential liability of securitization trust for vendor’s unremitted GST (p. 12:23)

[A]ny tax owing that is not remitted by the seller may become...

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Summary Under
Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1)

Advantages of sale to securitization trust on recourse basis (p. 12:25)

P-029R [states]:

...It is the Department's position that where a person...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1)

Potential application to Canadian debtors under cross-border securitization (p. 12:26-12:27)

[W]hen trade receivables that arise from services...

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