Janette Pantry, Carrie Smit, "Tax Considerations in Restructuring under the Companies’ Creditors Arrangement Act", draft 2020 CTF Annual Conference paper

Summary Under
Tax Topics - Income Tax Act - Section 128 - Subsection 128(1) - Paragraph 128(1)(g)

Generally no application of s. 128(1)(g) where proposal accepted (p. 8)

  • Although s. 128(1)(g) provides that any losses of the corporation for a...

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Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount - Element B - Paragraph B(i)

Notwithstanding IT-293R, para. 26, there may be no forgiven amount even though debtor’s proposal subsequently approved (pp. 8-9)

  • Although under...

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Summary Under
Tax Topics - Income Tax Act - Section 79 - Subsection 79(2)

Description of credit bid (pp. 11-12)

  • Under a credit bid, which allows an existing secured creditor to bid up to the full face amount of their...

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Words and Phrases
in consequence of
Summary Under
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount

Description of reverse vesting transaction (pp. 17-18)

  • In a “reverse vesting transaction”, the obligations of the debtor which are to be...

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

Interest stops rule applicable to unsecured debt (pp. 21-23)

  • Under the interest stops rule, interest on unsecured provable claims stops accruing...

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