Joint Committee, "Avoidance of Tax Debts", 5 April 2022 Joint Committee Submission

Summary Under
Tax Topics - Income Tax Act - Section 160 - Subsection 160(5) - Paragraph 160(5)(a) - Subparagraph 160(5)(a)(ii)

"One of the purposes” is too low a threshold (p. 3)

  • The use of the "one of the purposes” test in s. 160(5)(a)(ii) establishes too low a...

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Summary Under
Tax Topics - Income Tax Act - Section 160 - Subsection 160(5) - Paragraph 160(5)(c)

S. 160(5)(c) rule should reflect all value-for value exchanges (pp. 6-9)

  • The rule under s. 160(5)(c) (deeming there to be a net property transfer...

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Summary Under
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) - Paragraph 160(1)(c)

Exclusion of s. 251(5)(b) rights

  • There should not be considered to be non-arm's length status by virtue only of rights described in s. 251(5)(b).
Summary Under
Tax Topics - Income Tax Act - Section 160.01 - Subsection 160.01(2)

Scope should be limited to promoters or devisers (p. 10)

  • The reference in s. 160.01(2) to “every person who engages, participates in, assents...

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Summary Under
Tax Topics - Income Tax Act - Section 160.01 - Subsection 160.01(3)

Clerical or secretarial services exclusion is too narrow (p. 10)

  • The exclusion in s. 160.01(3) for clerical or secretarial services is too narrow...

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