Hersh Joshi, Jack Silverson, "Understanding and Doing Business with Tax-Exempt Entities", 2018 Conference Report (Canadian Tax Foundation), 29:1 – 35

Summary Under
Tax Topics - Income Tax Regulations - Regulation 8502 - Paragraph 8502(i)

Potential for deemed loan JV provisions to constitute borrowing ((p. 29-4)

Many joint venture agreements contain a clause providing that if one of...

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Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(iii) - Clause 149(1)(o.2)(iii)(C)

Allocated LP income is income derived from an investment (pp. 29:7-9)

[T]he technical notes to section 253.1 implicitly contemplate that a...

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Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(iii) - Clause 149(1)(o.2)(iii)(B)

Trade payables not bonds etc. (p. 29:10)

[T]he CRA has accepted that intercompany payables and trade payables that are not evidenced in writing...

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Words and Phrases
bonds notes debentures or similar obligations
Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) - Clause 149(1)(o.2)(ii)(A)

Issues where co-investing in real estate (pp. 29:18-19)

[A] pension plan may want to co-invest…[and] might establish a real estate...

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Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(o.2) - Subparagraph 149(1)(o.2)(ii) - Clause 149(1)(o.2)(ii)(C)

Limitations on borrowing (pp. 29:20-21)

[B]orrowing to fund a tenant inducement payment… should generally satisfy the borrowing restrictions,...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 8501 - Subsection 8501(2) - Paragraph 8501(2)(a)

10% rule (pp. 29:26-28)

“[T]he 10 percent rule” … is found in section 9 of the PBSA investment rules, and it requires the diversification of...

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