Larry Nevsky, Brian Kearl, Aaron Chai, "Unexpected EIFEL Issues and Uncertainties", Draft 2024 CTF Annual Conference paper

Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity

Tainting of excluded entity status by individuals (pp. 2-7)

  • The inclusion in eligible group entities of resident corporations or trusts that are...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph (h)

Potential iterative calculation where additional non-capital loss of another taxation year is used to offset additional taxable income arising...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Relevant Affiliate Interest And Financing Expenses

Potential inclusion in RAIFE of capital losses from excluded property (p. 11)

  • Notwithstanding the Explanatory Notes’ statement that the...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(D)

Issues with s. 95(2)(f.11)(ii)(D) rule (pp. 12-13)

  • S. 95(2)(f.11)(ii)(D) provides, respecting s. 95(2)(f)(ii) (but not (i)) amounts included in...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(E)

Benefit of election/ potentially an all-or-nothing election (pp. 13-14)

  • S. 95(2)(f.11)(ii)(E) provides for an election to forego FAPL amounts...

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

No ability to accrue unused excess capacity (p. 17)

  • S. 18.21(2) reflects an intention that a taxpayer subject to the group ratio cannot accrue...

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Summary Under
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Exempt Interest And Financing Expenses

Allocation of financing to purpose-built residential rental (pp. 18-19)

  • The proposed definition of “exempt interest and financing expenses”...

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