Cases
Lane v. The Queen, 78 DTC 6535, [1978] CTC 795 (FCTD), aff'd 86 DTC 6568, [1986] 2 CTC (FCA)
Under the partnership law of Alberta and other provinces, no partner has any right to take any portion of the partnership property and call it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Partnership Interests | partnership interest distinct from partnership property | 61 |
| Tax Topics - Income Tax Act - Section 96 | 20 |
Subsection 100(1) - Disposition of interest in partnership
Cases
Canada v. Oxford Properties Group Inc., 2018 FCA 30
When Oxford Properties was sold to an OMERS subsidiary, the purchaser first negotiated that Oxford would drop various properties down into...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | using the s. 88(1)(d) bump on newly-formed rental property LPs to avoid indirect recapture income under s. 100(1) was abusive | 975 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | s. 88(1)(d) bump is intended to permit the transfer of ACB that otherwise would be lost to another property that is taxed in the same way | 371 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | s. 98(3)(c) bump is intended to avoid gain realization where there has been no economic gain | 267 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | 3-year time limitation in s. 69(11) did not establish safe harbor for avoidance of recapture on sale after that period | 382 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | object includes ultimate taxation of the deferred gain | 234 |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | GAAR question as to determining a provision’s object was subject to correctness standard | 169 |
| Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. | statement that amendment was for “clarification” was self-serving | 209 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | determination of whether amendment merely clarified requires review of pre-amendment state of law | 146 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | consequential s. 245(2) adjustment must be scaled to the abuse | 391 |
See Also
Oxford Properties Group Inc. v. The Queen, 2016 TCC 204, rev'd 2018 FCA 30
When Oxford Properties was sold to a Canadian pension fund (“OMERS”) subsidiary, the purchaser first negotiated that Oxford would drop various...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no abuse in using 88(1)(d) bump to avoid s. 100 after 3-year s. 69(11) period | 557 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | subsequent sale part of series as it utilized the benefit of previous LP packaging transactions | 383 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | purpose not to tax underlying recapture on subsequent LP unit sale | 431 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | purpose: to push down ACB of shares of sub to qualifying non-depreciable property | 489 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | subsequent amendment shed light on scope of previous version | 107 |
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) | Parliament provided safe harbour for sales after 3 years | 204 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | purpose: to preserve high outside basis through push down | 293 |
Administrative Policy
2 December 2014 CTF Roundtable, Q. 6
Does the formation of a partnership with only Canadian partners in order to meet the requirement of a "Canadian partnership" under subsection...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | avoidance of s. 100 through partnership boot paydown | 343 |
Articles
Paul Cormack, Janette Pantry, "Negative Partnership Interest ACB", Canadian Tax Highlights, Vol. 24, No. 8, August 2016, p. 2
S. 100 rules extend to negative ACB amounts
[T]he tax treatment of a general partner's negative ACB is not the same if the partnership interest is...
Mitchell Sherman, Kenneth Saddington, "100 1 Damnations!", Corporate Finance, Volume XVIII, No. 3, 2012, p. 2126
Before turning to the 2012 amendments, they gave an overview of the anomalous character of the existing rule:
… First it does not actually...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 101 - Subsection 101(1) | 296 |
Subsection 100(1.1) - Acquisition by certain persons or partnerships
Administrative Policy
13 November 2013 External T.I. 2013-0482431E5 - Subsection 100(1) and trusts under RRSP
Partnership A disposes of its interest in Partnership B (holding only depreciable property) to Partnership C, whose members include RRSPs. Would...
Articles
Jessica Fabbro, "Dispositions of Partnership Interests – Navigating the Amendments to Section 100 of the Income Tax Act", CCH Tax Topics, No. 2162, August 15, 2013, p. 1
Purpose of s. 100(1.1)(d) (p.2)
…[P]aragraph 100(1.1)(d) does not include a trust merely because it has a non-resident beneficiary. While the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1.3) | 171 |
Subsection 100(1.3) - Exception — non-resident person
Articles
Jessica Fabbro, "Dispositions of Partnership Interests – Navigating the Amendments to Section 100 of the Income Tax Act", CCH Tax Topics, No. 2162, August 15, 2013, p. 1
Reason for rule (p. 3)
Subsection 100(1.3) applies where the purchaser of the partnership interest is a non-resident and partnership property is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1.1) | 289 |
Subsection 100(1.5) - Deemed gain — dilution
Articles
Mitchell Sherman, Kenneth Saddington, "100 1 Damnations!", Corporate Finance, Volume XVIII, No. 3, 2012, p. 2126 at 2128: There are issues in the computation of the deemed capital gain under s. 100(1.5)
First, the ACB of the partnership interest does not appear to be relevant in the determination of the deemed gain; accordingly, a dilution could...
Subsection 100(2)
Administrative Policy
8 October 2010 Roundtable, 2010-0373461C6 F - Retrait d'une société de personnes
The units of a partner (apparently, a general partner) were required to be redeemed at 20% per year upon attaining the age of 60. A partner...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3) | negative ACB realized pro rata as units are redeemed | 51 |
| Tax Topics - Income Tax Act - Section 43 - Subsection 43(1) | all the partner’s units are a single property | 81 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | partnership unit is not separate property from other units | 57 |
Subsection 100(2.1) - Idem [Gain from disposition of interest in partnership]
Administrative Policy
S4-F7-C1 - Amalgamations of Canadian Corporations
1.42 Where the new corporation is not related to the predecessor corporation, subsection 100(2.1)… requires the predecessor corporation to...
Subsection 100(3) - Transfer of interest on death
Articles
H. Michael Dolson, "Death of a Partner - tax Consequences of an Unwritten Partnership Agreement", Business Vehicles, Vol. XIV, No. 2, p. 739.
Subsection 100(4) - Loss re interest in partnership
Administrative Policy
12 November 2009 Internal T.I. 2009-0315431I7 - Interaction of subsections 100(4) and 40(3.4)
The stop loss rules in s. 100(4) or 93(2.2) apply at the time of the actual disposition of the property to determine the amount of the taxpayer's...