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In consideration, they were permitted to keep the recoveries of alternative minimum tax made by them in the subsequent taxation years. ...

1 November 2018- 1:03am CRA rules that a purchaser could acquire Lossco’s business through a sub LP and then acquire Lossco as an empty shell to get its losses under s. 88(1.1) Email this Content A foreign-owned Canadian-resident corporation (“Taxpayer”) used a subsidiary LP to acquire the sole business of a “Lossco” that was in CCAA proceedings and then, a number of years later (and perhaps well after the completion of the CCAA restructuring) it purchases the shares of Lossco for nominal consideration and winds up Lossco. ...

The consideration (aggregating C$4.3B) was C$29.00 per share, except that some of the Enercare shareholders elected to instead receive 0.5509 of an Exchangeable LP Unit of a subsidiary LP (“Exchange LP”) of Brookfield Infrastructure Partners L.P. ...

22 November 2018- 4:54am Applewood – Tax Court of Canada finds that a car dealer who promoted and processed credit insurance to its customers was supplying a GST/HST exempt “arranging for” service Email this Content A car dealer entered into a “Dealer Agreement” with a distributor of credit insurance products under which it was agreed that it would “up sell” the insurance products and assist the car customers in applying for the insurance in consideration for a commission of over 50% of the insurance premium. ...

Although not needing to land on this issue, he indicated that there may have been undue delay for purposes of the rule in ETA.s 152(1)(b) (effectively deeming consideration to have become due when its invoicing is unduly delayed) even if the audit firm had “issued” the invoice, given that the invoice date was six months after the completion of the audit work – whereas normally invoices were issued much more promptly. ...

This was the set-up for ACo to then transfer its shares of BSub and CSub to BCo1 and CCo1, respectively, under s. 85(1) in consideration for preferred shares of the transferees, thereby permitting A’s interest in the DC assets to be frozen for the future benefit of her children. ...

Part of the consideration received by affiliates of the Advisor for transferring the hotels into the structure will be Class B redeemable units of the hotel LLC owner. ...

3 January 2019- 1:26am CRA requires that a transfer of an FA with exempt earnings by FA Holdco to Can Subco occur at less than the shares’ FMV Email this Content A foreign affiliate (New FA) of a Canadian corporation (ACo) transferred all the shares of FA1 to a Canadian-resident subsidiary (BCo) of ACo in consideration for a note of BCo whose amount equalled the sum of the relevant cost base of the FA1 shares and the net surplus (being exempt surplus) of FA1 (such sum, the “Transfer Amount”). ...

Like other aspects of the financial services definition, this legislative drafting is conceptually confused and backwards as it focuses on the distribution by the investee being exempt rather than on explicitly exempting this distribution viewed as consideration for the capital provided by the investor. ...

Thereafter, Trust1 will engage in a pipeline transaction in which it will transfer its preferred shares of Opco1 to a new CCPC (Newco) in consideration for Newco preferred shares with full paid-up capital, at the same time as the other shareholders of Opco1 transfer their shares on a s. 85(1) rollover basis to Newco. ...