Section 18.2

Subsection 18.2(1)

Adjusted Taxable Income

A

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Creation of non-capital loss in carryback or carryforward year (pp. 18-19)

An example is provided where a portion of a non-capital loss that is...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Double-deductions of non-capital losses

Item A in the ATI formula is reduced by the non-capital loss and net capital loss generated for the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(2)		77
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses - A - Paragraph (d)		39
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(3)		113
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		73
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4) - Paragraph 18.2(4)(c)		104

B

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

No addback of terminal losses (p. 21)

Variable B of the ATI formula should include an addback for any terminal loss deduction under s. 20(16)...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

Paragraph (a)

Articles

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Interest that is expressly permitted to be capitalized to resource pools is not added back (p. 4)

Variable B adds back a number of amounts so as...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(12)		156
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		104
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(b)		121
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a.1)		173
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		79
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(3)		194

Paragraph (h)

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Potential need to determine pre-EIFEL IFR and IFE (p. 7)

Given the potential to carry forward losses from pre-EIFEL years, taxpayers may be...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Relevant Affiliate Interest And Financing Expenses		117
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(A)		37
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(D)		97
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings - Paragraph (b)		37
Tax Topics		63
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Revenues		63
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4)		100
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2) - Paragraph 18.21(2)(a)		53
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Group Ratio		28

C

Paragraph (b)

Articles

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Circularity issue arising from the FTCs being affected by deductible interest and financing expenses (IFE), which cannot be determined until the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(12)		156
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		104
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph B(a)		140
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a.1)		173
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		79
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(3)		194

Paragraph (e)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Need to properly flow through trust attributes to corporate or trust beneficiaries (pp. 24-26)

Para. (e) of variable C reduces ATI by an amount...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212

Excluded Entity

Articles

Balaji Katlai, Hugh Neilson, "Canadian Inbound Investment: The EIFEL Trap?", International Tax Highlights (IFA Canada), Vol. 1, No. 2, August 2022, p. 7

25% threshold re non-resident equity rights (pp. 7-8)

From the perspective of a Canadian-controlled private corporation (CCPC) that has an active...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Low de minimis threshold

The “excluded entity” definition in draft s. 18.2(1), which includes groups of corporations and trusts whose...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(2)		77
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		96
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses - A - Paragraph (d)		39
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(3)		113
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		73
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4) - Paragraph 18.2(4)(c)		104

Paragraph (b)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Other countries use higher and flexible safe harbour limits (pp. 7-8)

The de minimis exception in para. (a) for a taxpayer which, together with...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

Paragraph (c)

Subparagraph (c)(i)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

“Substantially all” test must be satisfied for each business (p. 9)

All or substantially all of “each” business of the taxpayer and of...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

Subparagraph (c)(ii)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Exclusion for FAs even with nominal income (pp. 9-10)

The exclusion for any foreign affiliate could apply, for instance, to a dormant foreign...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

Subparagraph (c)(iii)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Reason for specified shareholder exclusion (p. 10)

It is understood that the policy concern being addressed arises where interest or financing...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

Subparagraph (c)(iv)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Exclusion for Canadian tax exempts, difficulties for publicly traded debt and level of aggregation (pp. 10-12)

Regarding the requirement that all...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		323
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

Excluded Interest

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Restriction to corps (pp. 14-16)

The excluded interest provision should be expanded to apply where either or both of the parties to a loan are...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (b)		222
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(i)		90
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(ii)		79
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iii)		92
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity - Paragraph (c) - Subparagraph (c)(iv)		213
Tax Topics - Income Tax Act - Section 80 - Subsection 80(3)		44
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		260
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B		212
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(e)		194

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Exclusion of excluded interest from interest and financing revenues/expenses (IFR/IFE) accommodates loss consolidations (p .4)

Excluded interest...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(12)		156
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph B(a)		140
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(b)		121
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a.1)		173
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		79
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(3)		194

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

General scope of excluded interest rules

The “excluded interest” rules depart from the 2021 federal budget proposals (which stated that...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(2)		77
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		96
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses - A - Paragraph (d)		39
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(3)		113
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4) - Paragraph 18.2(4)(c)		104

Interest and Financing Expenses

A

Paragraph (d)

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Potential inclusion of amounts under derivatives

The definitions of interest and financing expenses and revenues, as supplemented by the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(2)		77
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		96
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(3)		113
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		73
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4) - Paragraph 18.2(4)(c)		104

Interest and Financing Revenues

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Various imputed amounts not included (p.6)

The IFR definition will not be amended to include amounts under ss. 16.1, 17 and 247(2), and draft...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Other locations for this summary
Tax Topics

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Relevant Affiliate Interest And Financing Expenses		117
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(A)		37
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(D)		97
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings - Paragraph (b)		37
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph (h)		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4)		100
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2) - Paragraph 18.21(2)(a)		53
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Group Ratio		28

Relevant Affiliate Interest And Financing Expenses

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Separate flow-up of relevant affiliate IFE or relevant affiliate IFR (p. 4)

The amounts that would be the interest and financing revenues (IFRs)...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(A)		37
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(D)		97
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings - Paragraph (b)		37
Tax Topics		63
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Revenues		63
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph (h)		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4)		100
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2) - Paragraph 18.21(2)(a)		53
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Group Ratio		28

Subsection 18.2(2)

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Unclear whether s. 18.2 applies to computing FAPI

It is unclear whether the rules apply to computing the income of a foreign affiliate, which is...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		96
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses - A - Paragraph (d)		39
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(3)		113
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		73
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4) - Paragraph 18.2(4)(c)		104

John Unger, "Proposed Section 18.2: Limitations on Deducting Costs to Finance Foreign Affiliates", International Tax, CCH, December 2007, No. 37.

Subsection 18.2(3)

Administrative Policy

2008 IFA Round Table, Q. 10.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c)		0

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Effect of increasing future recapture

Draft s. 18.2(3) deems amounts of previously capitalized interest that are otherwise deductible as CCA or...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(2)		77
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		96
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses - A - Paragraph (d)		39
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		73
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(4) - Paragraph 18.2(4)(c)		104

Subsection 18.2(4)

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Transferee can have a different functional currency or be a REIT (p. 7)

The EIFEL revisions have removed the requirement that cumulative unused...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Relevant Affiliate Interest And Financing Expenses		117
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(A)		37
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f.11) - Subparagraph 95(2)(f.11)(ii) - Clause 95(2)(f.11)(ii)(D)		97
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings - Paragraph (b)		37
Tax Topics		63
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Revenues		63
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph (h)		55
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2) - Paragraph 18.21(2)(a)		53
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Group Ratio		28

Paragraph 18.2(4)(c)

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Difficulties for consolidated operation of financial services groups

S. 18.2(4)(c), which effectively prevents a “relevant financial...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Entity		55
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(2)		77
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - A		96
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Interest and Financing Expenses - A - Paragraph (d)		39
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(3)		113
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		73
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(1) - Acceptable Accounting Standards		85
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		66

Subsection 18.2(12)

Articles

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Effective 30% capacity generated by interest and financing revenues (IFR) from NAL non-resident – even if paid by its Cdn. branch (p. 3)

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries		Wordcount
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Excluded Interest		104
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - B - Paragraph B(a)		140
Tax Topics - Income Tax Act - Section 18.2 - Subsection 18.2(1) - Adjusted Taxable Income - C - Paragraph C(b)		121
Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a.1)		173
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(2)		79
Tax Topics - Income Tax Act - Section 18.21 - Subsection 18.21(3)		194

You are here

Section 18.2

Table of Contents

Subsection 18.2(1)

Adjusted Taxable Income

A

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

B

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Paragraph (a)

Articles

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Paragraph (h)

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

C

Paragraph (b)

Articles

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Paragraph (e)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Excluded Entity

Articles

Balaji Katlai, Hugh Neilson, "Canadian Inbound Investment: The EIFEL Trap?", International Tax Highlights (IFA Canada), Vol. 1, No. 2, August 2022, p. 7

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Paragraph (b)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Paragraph (c)

Subparagraph (c)(i)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Subparagraph (c)(ii)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Subparagraph (c)(iii)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Subparagraph (c)(iv)

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

Excluded Interest

Articles

Joint Committee, "Excessive Interest and Financing Expenses Limitation Proposals", 5 May 2022 Submission of the Joint Committee

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Interest and Financing Expenses

A

Paragraph (d)

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Interest and Financing Revenues

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Relevant Affiliate Interest And Financing Expenses

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Subsection 18.2(2)

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

John Unger, "Proposed Section 18.2: Limitations on Deducting Costs to Finance Foreign Affiliates", International Tax, CCH, December 2007, No. 37.

Subsection 18.2(3)

Administrative Policy

2008 IFA Round Table, Q. 10.

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Subsection 18.2(4)

Articles

EY, "Revised EIFEL proposals", Tax Alert 2022 No. 43, 10 November 2022

Paragraph 18.2(4)(c)

Articles

PWC, "Tax Insights: Excessive interest and financing expenses limitation (EIFEL) regime", Issue 2022-06, 15 February 2022

Subsection 18.2(12)

Articles

EY, "Proposed EIFEL rules", Tax Alert 2022 No. 13, 9 March 2022

Navigation