Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Has the CRA's position regarding provincial tax implications of loss consolidations within corporate groups changed since the Department of Finance released the Consultation Paper on the Taxation of Corporate Groups in November 2010?
Position: No
CLHIA Roundtable - May 20, 2011
Question 2 - Taxation of Corporate Groups
What is the CRA's current position regarding provincial tax implications of loss consolidations within corporate groups? Has the CRA's position in this regard changed since the Department of Finance released the Consultation Paper on the Taxation of Corporate Groups in November 2010?
CRA Response:
The CRA's position regarding provincial tax implications of loss consolidations within corporate groups has not changed since the Department of Finance released the Consultation Paper on the Taxation of Corporate Groups in November 2010, and remains essentially as stated at previous Canadian Tax Foundation conferences.
The CRA will continue to monitor the interprovincial effects of loss-consolidation transactions. If a typical loss-consolidation transaction results in an incidental shifting of income or losses between provinces, simply because the "profitco" and the "lossco" happen to have different provincial allocations, there should not be a concern from the perspective of agreeing provinces. If, on the other hand, the transactions are designed to deliberately shift income or loss between provinces, provincial concerns will have to be considered.
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