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("FMI") with FMI then immediately paying $20 million to Millbank as a prepayment of one year's interest and Millbank utilizing $20 million to pay down the principal of loan owing by it to FMCC to $175 million; Lossco acquired a 99.99% limited partnership in Millbank shortly thereafter (and immediately prior to the first fiscal year end of Millbank) thereby resulting in $20 million of income of Millbank being allocated to it, which eliminated its losses; the 99.99% partnership interest was transferred for nominal consideration by Lossco to an indirect special purpose subsidiary of Lossco ("540") and 540 then was sold to Novopharm; FMCC lent $175 million to Novopharm which used those proceeds to subscribe for shares of 540; 540 made a capital contribution of the same amount to Millbank, which paid off the $175 million loan owing by it to FMCC; a year later after $20 million of interest had accrued on the loan owing by Novopharm to FMCC, FMI repaid the $195 million principal amount owing by it to Millbank, Millbank distributed this sum to its partners (substantially 540), 540 purchased for cancellation most of the shares of Novopharm and 540 for $195 million (giving rise to a deemed dividend of $20 million), and Novopharm used the $195 million to discharge the amount owing by it to FMCC (including the $20 million of interest). ...

Canada, 2017 FCA 151-- summary under Supply Summary Under Tax Topics- Excise Tax Act- Section 123- Subsection 123(1)- Supply service in relation to a cross-border vacation home portfolio split into two (GST-taxable and non-taxable) geographic components The Appellant, a Canadian-resident non-share corporation, most of whose members had time share points which entitled them to book stays at Canadian, U.S. and Mexican resort condos beneficially owned by the corporation, receiving its annual fees from them as consideration for funding the operating costs of the time share program. ...

In noting that broader considerations also supported a finding that the taxpayers’ shares were prescribed shares, he stated (at paras. 55-56, 58): The fact that the appellants were exposed to a risk from the moment when the options were granted and that the shares described under the terms of the plan were in all respects prescribed shares explain why they could have claimed the 50% deduction if they had simply sold their options to Cybectec…. ...

Webb JA noted (at para. 19) that "If the taxpayer can illustrate that there are other transactions that could have achieved the same result without triggering any tax, then... this would be a relevant consideration in determining whether or not the avoidance transaction is abusive. ...

After stating (at para. 29) that “arguably there is a conflict between subsection 141.01(2) of the Act and subsection 141.1(3) of the Act as it may be difficult to argue that any expense incurred after a registrant has ceased making taxable supplies is made for the purpose of making taxable supplies even though the expenditure is made in connection with the termination of the commercial activity,” he stated (at para. 30) that this conflict should be resolved as follows: In general, subsection 141.01(2) of the Act would provide that a property or service will be deemed to be acquired in the course of commercial activities to the extent that it is acquired for the purpose of making taxable supplies for consideration. ...

The solution adopted was for PWR to then transfer high basis assets to the Holdcos in consideration for preferred shares of the same class, so that the PUC of the preferred shares held by Mr. ...

Ignoring the significant complicating effect of the transactions with his sister, he transferred his shares under s. 85(1) to a new holdco (“P Pom”) in consideration for Class G shares of P Pom (with a nominal paid-up capital and a deemed cost equaling the “soft” ACB of the transferred shares, and for Class A common shares of P Pom with a nominal PUC and ACB. ...

Instead, he transferred the shares to a new holding company (P Pom) under s. 85(1) in consideration for high ($1M) basis Class G shares and low basis Class A shares, and redeemed the Class G shares. ...

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

Canada, 2018 FCA 209-- summary under Subsection 245(3) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(3) not each transaction in series effecting an estate freeze had that objective Prior to the sale of a corporation ("Groupe AST") to a third party, its individual shareholder (“Jobin”) transferred his shares of Groupe AST on a s. 85(1) rollover basis to a holding company (“276”), and then the adjusted cost base of the shares of Groupe AST was stepped up in the hands of 276 to fair market value through a combination of Groupe AST increasing the stated capital of its shares, thereby generating a s. 84(1) deemed dividend to the taxpayer which was reported by it as a capital gain under s. 55(2), and of 276 transferring the Groupe AST shares on a non-rollover basis to a Newco formed by Jobin (“9144”) in consideration for Class A common shares with a high ACB. ...