Saira Bhojani, Eivan Sulaiman, "EIFEL Rules", Draft 2022 CTF Annual Conference paper

Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)

Entity-by-entity application of test (p.9)

  • The test of all or substantially all of the businesses, undertakings and activities of each eligible...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)

Exceeding of $5M threshold even where small FA interest or stacking of FAs (p. 9)

  • The test of the total fair market value of all property of a...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii) - Clause (c)(iii)(A)

Likely requirement to hold a share (pp. 10-11)

  • Presumably the position in 2019-0798831C6, that a person must own at least one share of a...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(9)

Application where share sale but not asset sale (pp. 11-12)

  • Where, for example, a Canadian-resident taxpayer has a subsidiary that causes it to...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Revenues - Paragraph (g)

Reduction for FAT claims in future years (p. 20)

  • The inclusion under para. (g) of the interest and financing revenues definition of the relevant...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excess Capacity

Application of RIFE first (p. 30)

  • A taxpayer’s excess capacity (generally arising where the maximum amount a taxpayer is permitted to deduct in...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4)

Requirement for accuracy (p. 34)

  • Any over-designation, including an immaterial one, will invalidate a transfer of excess capacity under s....

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Summary Under
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)

Zero tolerance for errors (p. 39)

  • Under s. 18.21(2), if an election is made that allocates an amount greater than the specified limits, the...

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