Subsection 113(1) - Deduction in respect of dividend received from foreign affiliate
Administrative Policy
2004 Ruling 2004-0103111R3 - Foreign affiliates; indirect payment
Ruling that a U.S. LLC would be considered a corporation, that the ownership interest of a member would be considered shares, and that...
93 C.R. - Q. 59
Where all of the shares of a non-resident corporation are owned by a trust whose sole beneficiary is a corporation resident in Canada, dividends...
Articles
Kenneth Snider, "Selecting the Foreign Business Entity: A Review of the Canadian Tax Treatment of U.S. Taxes Paid By a Member (Shareholder) of a U.S. Limited Liability Corporation", International Tax Planning, 2002 Canadian Tax Journal, Vol. 50 No. 2, p. 705.
Lanthier, "Emerging Income Tax Issues: Public Service 2,000, International Finance Companies, and U.S. Limited Liability Companies", 1993 Conference Report, pp. 3:19 - 29
Discussion of U.S. limited liability companies.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation | 7 |
Paragraph 113(1)(a)
Administrative Policy
15 May 2019 IFA Roundtable Q. 9, 2019-0798761C6 - Surplus Documentation
Canco, which did not prepare a detailed calculation of its exempt surplus, hybrid surplus and taxable surplus accounts, nor of its hybrid...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2.2) | failure by Canco to prepare surplus accounts precludes late- filed Reg. 5901(2)(b) election | 236 |
2 November 1990 T.I. (Tax Window, Prelim. No. 2, p. 11, ¶1049)
Interest paid by U.S. subsidiary which is recharacterized as a dividend for U.S. purposes will be taxed as interest income in the hands of the...
81 C.R. - Q.12
RC will not issue rulings allowing a Canadian corporation to use a Netherlands corporation as an intermediary to make interest-bearing loans to a...
Articles
Alex Pouchard, Paloma Nunez, "Luxembourg Court Rules on the Tax Treatment of MRPS", International Tax Highlights (IFA Canada), Vol. 1, No. 2, August 2022, p. 5
Finding that MRPS were equity (p. 5)
- The highest Luxembourg tax court (in March 31, 2022 Administrative Court cases nos. 46131C and 46132C)...
Nathan Boidman, Michael N. Kandev, "Expected Adverse Effects of Proposed U.S. Anti-Hybrid Regulations on Inbound Financing by Canadian MNEs", Tax Notes International, February 11, 2019, p. 623
Anti-hybrid rule in IRC s. 267A (p. 624)
[S]ection 267A targets deduction/non-inclusion (D/NI) situations.
A broadly worded grant of regulatory...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(B) - Subclause 95(2)(a)(ii)(B)(II) | 504 |
Lanthier, "Foreign Holding Companies and Finance Vehicles: An Update", 1990 Conference Report, c. 42
Paragraph 113(1)(a.1)
Articles
Sandra Slats, David Burns, "Canada Considers New Rules on Repatriation", Tax Notes International, Vol 63, No. 9, 29 August 2011, p. 641
General discussion of hybrid surplus proposals.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(4) | 2 |
Paragraph 113(1)(c)
Administrative Policy
11 June 2013 STEP Roundtable, 2013-0480321C6 - 2013 STEP Question 6 US LLCs - FAPI, FAT and FTCs
Is the US tax paid by a Canadian-resident taxpayer on the income (which also is foreign accrual property income) of an LLC which is owned by it...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(12) | deduction for US tax on LLC income which also is FAPI | 161 |
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Foreign Accrual Tax | 326 |
Articles
Tim Barrett, Kevin Duxbury, "Corporate Integration: Outbound Structuring in the United States After Tax Reform", 2018 Conference Report (Canadian Tax Foundation), 18:1-76
FAPI inclusion if US tax rate on FAPI is only 21% - but potential s. 113(1)(c) deduction against other income on distribution (p. 18:11)
[T]he...
Manjit Singh, Andrew Spiro, "The Canadian Treatment of Foreign Taxes", 2014 Conference Report, (Canadian Tax Foundation), 22:1-37
113(1)(c) deduction where LLC dividends paid after Cdn corporate member pays tax on LLC FAPI (p. 26)
If the LLC is a foreign affiliate earning...
Paragraph 113(1)(d)
Administrative Policy
17 May 2022 IFA Roundtable Q. 5, 2022-0928101C6 - Surplus Account Maintenance
Regarding a request for additional guidance on the documentation required in light of the CRA position noted at 5 May 2019 IFA Roundtable Q.9,
Subsection 113(5)
Articles
Joint Committee, "Hybrid Mismatch Arrangements Proposals", 30 June 2022 Submission of the Joint Committee
Relief for foreign withholding tax on dividends subject to s. 113(5) (under “2. Recognition of Foreign Withholding Tax”)
- Where a dividend is...