Tim Barrett, Andrew Morreale, "Foreign Affiliate Update", 2019 Conference Report (Canadian Tax Foundation), 35: 1 – 53

Summary Under
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.5) - Paragraph 15(1.5)(a)

Share cancellation requirement

  • The s. 15(1.5)(a) demerger rule does not apply where the shares of the demerging corporation are cancelled, which...

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Summary Under
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.5) - Paragraph 15(1.5)(c)

Undesirability of gain if demerger of top-tier affiliate

  • Where the demerger is of a top-tier affiliate whose FMV exceeds the net surplus and the...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(26) - Paragraph 212.3(26)(b)

Quaere whether discretionary trust interests have a nil FMV

  • For the purposes of determining the ownership of shares of a corporation...

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Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(16) - Paragraph 212.3(16)(b)

Inapplicability of s. 212.3(16) safe harbor for CRIC wholly-owned by individual entrepreneur

  • Since “parent” under the expanded FAD rules can...

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Summary Under
Tax Topics - Income Tax Act - Section 90 - Subsection 90(9)

Issues with upstream loan rules

  • Remaining issues with the upstream loan rules include:
    • “Surplus deficits in entities above the lending entity...

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