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3 January 2024- 11:15pm 9331-0688 Québec – Tax Court of Canada finds that three corporations wholly-owned by an individual could not make an ETA s. 156 election Email this Content Jorré J found that three corporations were ineligible to make the ETA s. 156(2) nil consideration election because they were not “closely related,” i.e., their mutual shareholder was an individual rather than a corporation. ...

4 February 2024- 10:43pm CRA rules on post-mortem pipeline Email this Content CRA ruled on a conventional post-mortem pipeline: following preliminary transactions to generate a capital loss for carryback to the terminal year pursuant to s. 164(6), the estate sold its shares of “Investco” (described as carrying on a “business” of investing in GICs and other portfolio investments) to a Newco for consideration consisting mostly of a note, with Newco amalgamating with Investco after at least one year, and the note repaid on a quarterly basis thereafter. ...

7 November 2016- 12:11am CRA references shareholder’s benefit on gratuitous transfer of critical illness policy by corporation to its shareholder Email this Content CRA noted that the transfer of a critical illness insurance policy by a corporation to its shareholder would not give rise to a capital gain to the corporation, but appeared to consider that if the transfer was made for no consideration, there would be a taxable shareholder benefit conferred on the shareholder equal to the policy’s fair market value. ...

8 May 2017- 11:39pm CRA rules that the Alberta carbon tax is subject to GST Email this Content CRA has ruled that a natural gas distributor is required to include the Alberta carbon-tax levy (which it is required to collect from its customers) in the value of the consideration for such natural gas supplies for GST purposes – so that effectively the Canadian government is imposing GST on the Alberta carbon tax. ...

CRA was able to deal only with some of the issues, which were subsequently discussed at the 2017 Annual CTF Roundtable, and the Joint Committee has now asked for Finance’s consideration of these issues. ...

11 July 2018- 11:34pm CRA is imposing GST on B.C. sales tax applicable to sales of expensive autos Email this Content In general terms, ETA s. 154 excludes provincial sales tax from the consideration on which GST/HST is imposed if the sales tax is imposed at no more than the general sales tax rate for the province. ...

22 November 2018- 4:47am CRA confirms that outside basis is not lost on a horizontal short-form amalgamation Email this Content CRA noted that its position in S4-F7-C1, para. 1.74 that Where shares of a predecessor corporation are cancelled for no consideration pursuant to a short-form horizontal amalgamation, the adjusted cost base of such cancelled shares to the shareholder will be added to the cost of the common shares of the new corporation which are deemed to have been received by the shareholder on the amalgamation under subsection 87(1.1). is based on a 1999 Technical Interpretation (9830205). ...

31 December 2018- 12:04am CRA generally will accept a late ETA s. 156 substantively-available election if the parties have been treating themselves as subject to it Email this Content When asked when it will accept a late-filed ETA s. 156 nil consideration election (on form RC4616), CRA responded: CRA normally accepts these when the registrant is eligible, compliant and there is some sort of evidence that the registrant has been applying these rules consistently. ...

26 March 2019- 12:21am Newmont is proposing to acquire Goldcorp directly on a non-rollover basis for both ITA and IRC purposes Email this Content Newmont is proposing to acquire all the shares of Goldcorp pursuant to an Ontario Plan of Arrangement for consideration consisting of 0.3280 of a Newmont Share and US$0.02 in cash for each Goldcorp Share. ...

26 March 2019- 10:24pm CAPREIT is accomplishing a reverse takeover of European Commercial REIT through an asset sale Email this Content European Commercial REIT (the “REIT”) is substantially expanding its size by purchasing a Netherlands subsidiary (“BV”) of CAPREIT (holding a portfolio of Netherlands rental residential properties) in consideration for having a subsidiary LP of the REIT issue exchangeable units to CAPREIT. ...