Section 186

Subsection 186(1) - Related Corporations

See Also

Miedzi Copper Corporation v. The Queen, 2015 TCC 26 (Informal Procedure)

Essentially the appellant's only activity was to indirectly finance the mineral exploration activities of six Polish subsidiaries of its immediate...

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Words and Phrases
in relation to

Pay Linx Financial Corporation v. The Queen, 2011 TCC 203 (Informal Procedure)

The appellant, whose only "activity" was holding the shares of a wholly-owned subsidiary ("Pay Linx"), acquired property and services to maintain...

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Stantec Inc. v. The Queen, 2008 TCC 400 (Informal Procedure), aff'd 2009 FCA 285

The appellant acquired a US public company ("Keith") in a Delaware merger (in which Keith Industries merged into the appellant's US subsidiary,...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 186 - Subsection 186(2) "acquisition" of shares includes cancellation of those shares on a Delaware merger; "in relation to" to be construed broadly 317

Perfection Dairy Group Limited v. The Queen, 2008 TCC 342 (Informal Procedure)

A subsidiary (“PFL”) of the appellant went into receivership in 1991, and in 1996 PFL and its shareholders launched an action against various...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(2) fees were incurred in relation to claim of bankrupt subsidiary rather than to earn consulting fees 156

Administrative Policy

8 March 2018 CBA Commodity Tax Roundtable, Q.14

CRA has required a direct link to exist between the use or consumption of the good and the service by a parent and the shares of the capital stock...

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23 November 2016 Interpretation 165129

A corporation (“Parent”) holds units of subsidiary trusts and has argued that it incurred GST/HST to supply management services to those unit...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(2) expenses incurred respecting a subsidiary unit trust are ineligible for ITCs unless incurred as management-services inputs 161

GST/HST Technical Information Bulletin B-110 Application of the GST/HST to the Practice of Acupuncture April 2017

Cancellalation fee paid to acupuncturist

A cancellation fee paid by a patient for a missed or cancelled appointment is treated as payment for the...

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May 2016 Alberta CPA Roundtable, GST Q.14

Has the CRA updated its position on s. 186 following Miedzi Copper and Stantec? CRA responded:

Our position on the interpretation of section 186...

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26 February 2015 CBA Roundtable, Q.21

A parent corporation (which is not a financial institution) earns 60% of its income from management fees charged to its wholly-owned subsidiary...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 156 - Subsection 156(1) - Qualifying Member s. 186(1) does not deem use of property in commercial activity 58

26 February 2015 CBA Roundtable, Q. 17

Memorandum 8.6, para. 11, Example 3, indicates that “HoldCo” may not claim input tax credits (ITCs) under s. 186(1) for legal and accounting...

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CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 34

As s. 186(1) only applies for ITC purposes, it does not affect the determination of whether there is an imported taxable supply. However, where a...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 217 - Imported Taxable Supply failure to self-assess under s. 218 where satisfy s. 186(1) 63
Tax Topics - Excise Tax Act - Section 281.1 - Subsection 281.1(1) failure to self-assess under s. 218 where satisfy s. 186(1) 63

27 March 2009 Interpretation 106684

A holding company, which is not a financial institution and which had been claiming ITCs respecting its subsidiaries under s. 186(1), paid a...

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P-196R "Whether Administrative Overhead Costs Fall Under Subsection 186(1) of the Excise Tax Act", August 10, 2007.

29 November 2004 Interpretation 54669

In responding to a question on the application of s. 186(1) to inputs used by a holding company partially for making supplies of administrative...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(4) Holdco eligible for ITCs on inputs used by it to make free supplies to Opco 214

GST M 700-5-6 "Input Tax Credits for Holding Companies, Takeovers, and Multi-Tiered Corporations"

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 186 - Subsection 186(2) 0

Guide for Providers of Financial Services under "Special Provisions" - "Investments by Related Corporations"

General discussion.

Articles

Allan Gelkopf, Zvi Halpern-Shavim, "Five Arbitrary Differences between Corporations and Partnerships for GST/HST Purposes", Sales and Use Tax, Federated Press, Volume XIII, No. 2, 2015, p. 674.

CRA apparently not following Miedzi/partnerships not covered (pp. 674-5)

Stantec. . .[and] Miedzi Copper… significantly expand the scope of ITC...

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Subsection 186(2) - Takeover Fees

See Also

Stantec Inc. v. The Queen, 2008 TCC 400 (Informal Procedure), aff'd 2009 FCA 285

The appellant acquired a US public company ("Keith") in a Delaware merger (in which Keith Industries merged into the appellant's US subsidiary,...

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Words and Phrases
in relation to acquisition
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 186 - Subsection 186(1) listing fees to issue shares to target shareholders were eligible 263

Administrative Policy

15 November 2011 Headquarters Letter Case No. 135608

Where a "capital pool company" which has raised capital pursuant to a prospectus on a blind pool basis has identified a corporation to acquire, s....

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GST M 700-5-6 "Input Tax Credits for Holding Companies, Takeovers, and Multi-Tiered Corporations"

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 186 - Subsection 186(1) 0