Jason Boland, Christopher Montes, "A Detailed Review of the Back-to-Back Loan Rules", 2016 Conference Report (Canadian Tax Foundation), 26:1-32

Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(6) - Paragraph 18(6)(d)

Purposes of the s. 18(6)(d) de minimis rule (p. 26:5)

[There] is a de minimis requirement that ensures that the back-to-back rule applies only if...

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Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(5) - Specified Right

Scope of “specified right” (pp. 26:6)

...[O]ne of the main reasons for the introduction of a more robust back-to-back rule in the thin...

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Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(6) - Paragraph 18(6)(c) - Subparagraph 18(6)(c)(i)

Meaning of “because of” in s. 18(6)(c)(i) (p. 26:8)

While the Supreme Court's comments in Copthorne appear to soften the "strong causal...

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Words and Phrases
because of
Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.8) - Relevant Funder

Observations on scope of “relevant funder” (pp. 26:9-10)

...First, the use of the broadly-defined terms "relevant funder" and "relevant...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.8) - Ultimate Funder

General effect of definition (p. 26:10)

...An ultimate funder effectively is a relevant funder (other than the immediate funder) that has funded a...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.21)

Potential usefulness of election (p. 26:12)

...This election may prove useful because most Canadian tax treaties limit withholding tax on interest...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.5)

Overview of s. 212(3.5) (pp. 26:13)

When a relevant funder receives funding (either by way of debt or specified right) which it uses (together...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.8) - Specified Share

No requirement for specified share to pay dividends( p. 26:14-15)

...For a share to be a specified share, there is no requirement that a payment...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.6) - Paragraph 212(3.6)(a)

Application of connectivity test to SPVs (p. 26:16)

...In practice, when an equity subscription is used to fund a special purpose vehicle (SPV)...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(3.91)

Reasonably allocable requirement (pp. 26:20-21)

It is not clear what is required to prove to the satisfaction of the minister that a portion of...

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Summary Under
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2.18)

FIFO treatment of repayments (p. 26:25)

Finance has indicated that repayments are considered to occur on a first-in-first-out basis, in accordance...

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