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It also may be considered to make a more general point: taxpayers should be allowed to direct where their refunds are to be paid, just as they choose the bank account into which the funds are to be deposited. ...

PWC, "Tax Insights: Investment limited partnerships ─ GST/HST & QST filing obligations", Issue 2020-27, May 04, 2020-- summary under Subsection 225.4(6) Summary Under Tax Topics- Excise Tax Act- Section 225.4- Subsection 225.4(6) Addition of ILPs to SLFI world Most Canadian resident investment limited partnerships (ILPs) will be considered to be a Selected Listed Financial Institution (SLFI), starting January 1, 2019 (i.e. the 2019 fiscal year). ...

Joint Committee, "Guidance on International Income Tax Issues raised by the COVID-19", 11 June 2020 Joint Committee Submission-- summary under Foreign Accrual Property Income Summary Under Tax Topics- Income Tax Act- Section 95- Subsection 95(1)- Foreign Accrual Property Income COVID 19 relief suggested re FAPI issues The Guidance on international income tax issues raised by the COVID-19 crisis addresses whether COVID Travel Restrictions could result in a non-resident being considered to carry on business in Canada or have a Canadian permanent establishment, but should also address the following foreign accrual property income (FAPI) issues: Income from an active business will be deemed to be FAPI where it is carried on through a permanent establishment in a “non-qualifying country.” ...

Jim Samuel, Byron Beswick, "Selected Issues in Transactions Involving Debt", 2019 Conference Report (Canadian Tax Foundation), 18:1 – 27-- summary under Subsection 39(2) Summary Under Tax Topics- Income Tax Act- Section 39- Subsection 39(2) Whether specific tracing or blended aggregate approach should be applied in determining s. 39(2) gain or loss on FX debt partial repayments (p. 18:19) Aside from indicating the exchange rate(s) to be used, subsection 261(2) does not specify which particular advance or draw on an indebtedness is considered to be repaid for the purposes of determining the amount of any foreign exchange gain or loss that arises under subsection 39(2). ...

(p. 4) Treatment of lender’s fee There is an issue as to whether compensation payable to the lender is deductible to the borrower under s. 20(1)(c) (if it is considered to have received the loan on capital account), given that the loan has not been outstanding for any measurable period of time (i.e., there is no accrual period). ...

Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission-- summary under Clause (c)(i)(B) Summary Under Tax Topics- Income Tax Act- Section 237.3- Subsection 237.3(1)- Reportable Transaction- Paragraph (c)- Subparagraph (c)(i)- Clause (c)(i)(B) Narrowness of (c)(i)(B) exclusion from contractual protection (pp. 12-13) In a share sale, the vendor can be considered a “promoter” who has granted “contractual protection” where the purchase agreement includes (i) indemnities related to pre-closing taxes or tax attributes or (ii) covenants for assistance in the event of disputes with third parties (including disputes regarding tax outcomes expected to apply to the purchaser). ...

For example, there should not be considered to be a deemed depletion of value if: Shares of a corporation (Holdco) purchased for FMV consideration by the future tax debtor from the non-arm’s length (NAL) seller become worthless as part of the series due to a dividend-in-kind by Holdco to such future tax debtor of all its assets (i.e., shares of Opco); or The tax debtor assigns a note, equaling the FMV of assets sold by it to the NAL purchaser, to that purchaser’s parent, for FMV consideration, followed by a cancellation of that debt on a s. 88(1) wind-up. ...

Factors pointing to equity treatment (p.5) Although the MRPS had some debt-like features (10-year maturity, no voting rights except as provided under the Luxembourg commercial law, and cumulative and preferred fixed dividends), the court considered that the MRPS involved no evident mismatch between the legal form adopted (share capital) and the underlying economic reality of the provision of funds by a single shareholder to its subsidiary. ...

Accordingly, it is problematic that neither an arrangement agreement (to which shareholder may not be considered a party) and the related plan of arrangement readily fit within the above CRA concept of a purchase and sale agreement. ...

Joint Committee, "Impact of CAE case", 11 August 2023 Submission of the Joint Committee-- summary under Government Assistance Summary Under Tax Topics- Income Tax Act- Section 127- Subsection 127(9)- Government Assistance CAE indicated that a government loan lacking sufficient "ordinary commercial terms" – including one that was made otherwise than to promote the governmental commercial interests or that has a below-market interest rate – will be considered "government assistance" within the meaning of ss. 12(1)(x) and 127(9). ...