Section 186

Subsection 186(1) - Tax on assessable dividends

See Also

Les Entreprises Michèle L'Heureux Inc. v. The Queen, 94 DTC 1693 (TCC)

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Administrative Policy

2014 Ruling 2014-0533601R3 - Spin-off butterfly - subsection 55(2)

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution spin-off by CCPC under Plan of Arrangement of two businesses/matching of PUC of cross-shareholdings to match Part IV tax/leased property as business property 916
Tax Topics - Income Tax Act - Section 84 - Subsection 84(1) stated capital distribution effected by set-off 69
Tax Topics - Income Tax Act - Section 86 - Subsection 86(1) new common shares distinct on basis of right to interim financials 89

2014 Ruling 2013-0513211R3 - Butterfly Transaction

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Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution transfer to TC subco to avoid Part IV circularity/88(2) wind-up of DC/83(2.1) rep 410

30 June 2014 Internal T.I. 2013-0508411I7 F - Part IV Tax and the Dividend Refund

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Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) failure to circularly calculate Part IV tax and dividend refund is neglect given published TIs 258

2013 Ruling 2013-0502921R3 - Split-Up Butterfly - Farm

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution split-up b/f of CCPC with discontinued farm and unresolved circularity issue 553

2013 Ruling 2012-0443081R3 - Distribution of pre-72 Capital Surplus on Hand

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2013 Ruling 2012-0449611R3 - single-wing butterfly reorganization

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution single-wing b/f with acquisition of control of DC by its remaining shareholder (helpful re circularity issue) 510

93 C.R. - Q. 44

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4 March 1991 T.I. (Tax Window, No. 2, p. 15, ¶1183)

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Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) 20

IT-474R "Amalgamations of Canadian Corporations" under "Rules Respecting Shareholders, Option Holders and Creditors" under "Non-Resident Shareholders"

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Articles

Michael N. Kandev, Alan Shragie, "RDTOH on Butterfly", Canadian Tax Highlights, Volume 16, Number 11, November 2008, p. 2.

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Potter, "Part IV Tax Complications in Butterfly Transactions", 1992 Canadian Tax Journal, No. 4, p. 992.

Paragraph 186(1)(a)

Administrative Policy

3 June 2016 External T.I. 2016-0647621E5 F - Dividend designation from a trust - timing

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(19) designation not effective until end of year 222

Paragraph 186(1)(b)

Administrative Policy

2017 Ruling 2016-0675881R3 - Paragraph 55(3)(a) Internal Reorganization

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) division of rental real estate company between holdcos for 2 children but with parents' holdco retaining voting control 529
Tax Topics - Income Tax Act - Section 55 - Subsection 55(4) s. 55(3)(a) split-up between Newcos for two siblings which were related due to multiple-voting shares held by the father’s and mother’s Holdco 164
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e) UCC on s. 55(3)(a) spin-off prorated based on relative capital cost rather than FMV 160

2015 Ruling 2015-0605901R3 F - Présomption de gain en capital

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.01) - Paragraph 55(3.01)(g) separation of real estate assets beneath new holdco formed by unrelated shareholders 512
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) spin-off of real estate beneath new common holdoc of unrelated shareholders 105
Tax Topics - Income Tax Act - Section 249.1 - Subsection 249.1(7) taxation year end changed to immediately before building spin-off 93

24 November 2015 CTF Roundtable Q. 1, 2015-0610691C6 - T2 Late-Filing: Impact on Div. Refund and RDTOH

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) unclaimed dividend refunds did not reduce the corporation’s RDTOH 182

27 June 2014 External T.I. 2013-0498191E5 F - Interaction entre 55(2) et l'impôt de partie IV

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) s. 55(2) tax on cross-redemption deemed dividends between connected CCPCs gave rise to circular Part IV tax 339

Subsection 186(2) - When corporation controlled

See Also

Special Risks Holdings Inc. v. The Queen, 84 DTC 6505, [1984] CTC 553 (FCTD), aff'd 86 DTC 6036, [1986] 1 CTC (FCA)

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Administrative Policy

10 October 2014 October APFF Roundtable Q. 18, 2014-0538081C6 F - 2014 APFF Roundtable, Q. 18 - Connected corporations

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29 July 1992 T.I. (Tax Window, No. 21, p. 7, ¶2054)

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15 May 1991 T.I. (Tax Window, No. 6, p. 2, ¶1357)

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31 July 1989 T.I. (Dec. 89 Access Letter, ¶1053)

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Subsection 186(4) - Corporations connected with particular corporation

Administrative Policy

22 July 1993 T.I. 931385 (C.T.O. "Connected Corporations")

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16 December 1992 T.I. 920178 (November 1993 Access Letter, p. 511, ¶C245-050)

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) 28

26 August 1992 T.I. (Tax Window, No. 23, p. 12, ¶2155)

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25 and 28 March 1991 T.I. (Tax Window, No. 1, p. 5, ¶1178)

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90 C.R. - Q26

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IT-269R3 "Part IV Tax on Taxable Dividends Received by a Private Corporation or a Subject Corporation"

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Tax Topics - General Concepts - Fair Market Value - Shares 57

Subsection 186(5) - Deemed private corporation

Administrative Policy

18 December 2001 External T.I. 2001-007392 -

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Subsection 186(6) - Partnerships

Administrative Policy

6 November 2013 External T.I. 2013-0485691E5 - Connected Corporation and Part IV Tax

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Subsection 186(7) - Interpretation

Administrative Policy

8 January 2003 External T.I. 2002-017366 -

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