Section 143.3

Subsection 143.3(2) - Options — limitation

Articles

Chris Falk, Stefanie Morand, Brian O'Neill, "Is there Always Certainty Regarding Tax Basis? – Limitations on Expenditures Pursuant to Sections 143.3 and 143.4", 2014 Conference Report, (Canadian Tax Foundation),14:1-36

Denial of cost of property acquired with options (p. 14:7)

[O]ne of the effects of section 143.3 is that the issuer will not have any cost for...

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Subsection 143.3(3) - Corporate shares — limitation

Administrative Policy

2017 Ruling 2017-0699201R3 - Cross-border Butterfly

CRA ruled on a cross-border butterfly which entailed assets of the “Transferred Business” being transferred indirectly to a wholly-owned...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution cross-border butterfly with 4-party exchange and preceding distribution of DC to foreign parent to qualify as permitted exchange/rental property valued at nil/post-butterfly equaling cash payment 1140
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Permitted Exchange - Paragraph (b) cross-border butterfly including preliminary transfer of DC to foreing parent to come within “permitted exchange” 444
Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base full cost of property acquired under 4-party exchange 222
Tax Topics - Income Tax Act - Section 212.1 - Subsection 212.1(1.1) - Paragraph 212.1(1.1)(b) application on 4-party exchange 291

Paragraph 143.3(3)(a)

Administrative Policy

2009 Ruling 2008-0300102R3 - Deductibility of interest

ACO, a public corporation, issues Notes the interest on which may at ACO's option be satisfied by issuing preferred shares with an aggregate...

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25 June 2002 Internal T.I. 2002-0130177 F - DEBENTURE CONVERTIBLE

The issuer unsuccessfully sought to take an s. 20(1)(f) deduction regarding the excess of the market value of the shares into which its...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) amount paid by corporation on conversion of convertible debentures was the stated capital of the issued shares, being the debentures’ face amount, so that no s. 20(1)(f) deduction 88
Tax Topics - General Concepts - Payment & Receipt Teleglobe applied to find that amount paid by corporation on conversion of convertible debentures was the shares’ stated capital 53

Articles

Chris Falk, Stefanie Morand, Brian O'Neill, "Is there Always Certainty Regarding Tax Basis? – Limitations on Expenditures Pursuant to Sections 143.3 and 143.4", 2014 Conference Report, (Canadian Tax Foundation),14:1-36

Whether share issuance for debt cancellation entails ‘property transferred…to" the corporation (p. 9)

In the context of subsections 143.3(3)...

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Subparagraph 143.3(3)(a)(ii)

Administrative Policy

24 April 2001 Internal T.I. 2000-0037677 F - DEBENTURES CONVERTIBLES

Before finding that, on a (pre-s. 143.3) conversion of convertible debentures through the issuance of shares with a lower stated capital than...

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Paragraph 143.3(3)(b)

Administrative Policy

29 November 2016 CTF Roundtable Q. 3, 2016-0670201C6 - Agnico-Eagle Mines Decision

CRA rejected the suggestion that Agnico-Eagle could support the realization of a capital loss under s. 39(2) when a U.S.-dollar denominated...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) Agnico-Eagle analysis rejected 139

15 April 2009 Internal T.I. 2008-0301171I7 F - 7(3)b) vs 143.3(3)

Pubco (a Canadian public corporation) issues stock options (the “Options”) to certain employees with an exercise price not less than the FMV...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(b) recognition of compensation expense under GAAP on granting and then exercise of conventional Pubco options precluded by s. 7(3)(b) and notwithstanding Alcatel 160

Subsection 143.3(5) - Clarification

Paragraph 143.3(5)(b)

Articles

Chris Falk, Stefanie Morand, Brian O'Neill, "Is there Always Certainty Regarding Tax Basis? – Limitations on Expenditures Pursuant to Sections 143.3 and 143.4", 2014 Conference Report, (Canadian Tax Foundation),14:1-36

Excess is of cost over FMV (p. 6)

Implicit in the [Finance] technical note statements is the assumption that, for purposes of paragraph...

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