John Tobin, "Infrastructure and P3 Projects", 2017 Conference Report (Canadian Tax Foundation), 10:1-31

Summary Under
Tax Topics - Excise Tax Act - Section 168 - Subsection 168(3) - Paragraph 168(3)(c)

Meaning of substantially complete in the construction industry (p. 10:6)

[T]he term “substantially complete" is therefore an undefined term that...

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Words and Phrases
substantially complete
Summary Under
Tax Topics - Income Tax Act - Section 9 - Nature of Income

Distinction between cost-reduction of interim progress payments received and income-account treatment of phase-completion payments (p. 10:9-10)

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Summary Under
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1)

Whether P3 progress payments are cost reductions or revenue (p. 10:9-10)

One challenge is determining how to treat progress payments during the...

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Summary Under
Tax Topics - Income Tax Act - Section 13 - Subsection 13(27) - Paragraph 13(27)(b)

Whether 2-year rolling-start rule in s. 13(27(b)) should be applied to Class 14 property acquired in a P3 construction project on an...

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Summary Under
Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 7

Application of s. 7 to a lease-in lease-out structure re student residence (p. 10:11)

[S]ection 7 of schedule V provides an exception for certain...

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Summary Under
Tax Topics - Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(d)

Whether non-recourse nature of partnership-level debt is a loss-reducing benefit to a partner (p. 10:12)

[O]ften, debt to Projectco’s partners...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 3100 - Subsection 3100(1) - Paragraph 3100(1)(b)
see also authorities listed under Reg. 231(6) et seq.

Government progress payments (treated as s. 13(7.1) capital cost deductions) are prescribed benefit under Reg. 3100(1)(b) (p. 10:15)

[T]o the...

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Summary Under
Tax Topics - Income Tax Act - Section 237.1 - Subsection 237.1(1) - Tax Shelter - Paragraph (b)

P3 project likely flunks the mathematical test at financial close given that costs not yet incurred (p. 19:16)

In regard to the investment in the...

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Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (d)

TCP status on loans to P3 Projecto LP potentially avoided if partners of non-resident collective investment vehicle partnership lend directly to...

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Summary Under
Tax Topics - Income Tax Act - Section 18 - Subsection 18(7)

Application of thin cap rules to a non-resident (collective investment vehicle) partnership lending to a P3 Projectco (pp. 10:24-25)

[F]or the...

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

Inapplicability of transfer-pricing arm’s length standard to s. 20(1)(c) reasonable amount test (pp. 10:26-27)

GlaxoSmithKline…emphasized the...

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Summary Under
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b) - Subparagraph 212(1)(b)(i)

S. 212(13.1)(c) precludes transparent treatment of controlling NR partnership

Subsection 18(7) does not apply for withholding tax purposes. If a...

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