Principal Issues: Whether a change in benchmark rate from an Interbank Offering Rate (IBOR) to a Risk-Free-Rate (RFR) in a financial instrument could result in a disposition under the Income Tax Act.
Position: The law. Factual determination. Generally, such change, in and of itself, would not result in a disposition. Whether a disposition occurs can be determined only after a review of the facts and circumstances and based on the law that governs a financial instrument.
Reasons: Whether changes to the terms of a financial product result in a disposition depends on the facts and circumstances and the law that governs the financial product.