Subsection 237.3(1) - Definitions
Advisor
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Advisors may not have exposure to the reporting triggers (pp. 6-7)
- The proposals should take into account that some of the advisors involved in...
Lara Friedlander, Andrew S. McGuffin, "Canada To Enact New Tax Avoidance Reporting Rules", Tax Management International Journal, February 8, 2013,Vol. 42, No. 2, 90 at 92
Note that in some cases a counterparty could be considered an "advisor" or "promoter". This could be the case if a counterparty participates in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 237.3 - Subsection 237.3(2) | 36 |
Avoidance Transaction
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Expansion of “avoidance transaction” (pp. 8-10)
- The change of the “avoidance transaction” test to refer to “one of the main...
Confidential Protection
Administrative Policy
Mandatory disclosure rules – Guidance, 15 August 2024 CRA Webpage
Reportable Transactions
Confidential protection
- “Protection of trade secrets that do not relate to tax does not give rise to a reporting...
Contractual Protection
Administrative Policy
Mandatory disclosure rules – Guidance, 15 August 2024 CRA Webpage
Reportable Transactions
Contractual protection
- “Standard representations, warranties and guarantees between a vendor and purchaser, as well as...
Articles
Andrew Spiro, Jessica Charendoff, "Mandatory Disclosure Is Here: Now What?", Perspectives on Tax Law & Policy, Vol. 4, No. 3, September 2023, p. 1
Narrowness of carve-outs (p. 2)
- Although the “contractual protection” (CP) definition has helpful carve-outs, various common arm’s-length...
Rob Jeffery, Shawn D. Porter, "Mandatory Disclosure: A Reasonable Balance Between Timely Information and Administrative Burden", Perspectives on Tax Law & Policy, Vol. 4, No. 3, September 2023, p. 4
“Opt Out or Contend with Uncertainty” (p. 5)
[P]arties can easily avoid the RT [mandatory reportable transaction] regime by modifying their...
Reportable Transaction
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
No de minimis safe harbor (pp. 5-6)
- Consistent with the OECD approach, there should be a de minimis test or other filter to reduce the potential...
Lara Friedlander, Andrew S. McGuffin, "Canada To Enact New Tax Avoidance Reporting Rules", Tax Management International Journal, February 8, 2013,Vol. 42, No. 2, 90 at 93-94
In certain sectors of financial services, e.g., asset management or securities distribution, volume-based compensation for services is the norm. ...
Paragraph (a)
Administrative Policy
Mandatory disclosure rules – Guidance, 15 August 2024 CRA Webpage
Reportable Transactions
Contingent fee arrangements
A fee does not come within (a) of reportable transaction where:
- It is a standard fee (that...
3 May 2022 CALU Roundtable Q. 2, 2022-0928701C6 - Mandatory Disclosure Rules
A financial advisor (Ms. A), at the request of Mr. B’s tax advisor, sells a generally-available financial product to Mr. B and receives...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 237.3 - Subsection 237.3(2) - Paragraph 237.2(3)(c) | factors relevant to reporting obligation | 372 |
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Breadth of fee hallmarks (pp. 10-11)
- The fee hallmark could potentially be engaged by “value” billing (in this regard the OECD observed that...
Paragraph (b)
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Breadth of confidential protection hallmark (pp. 11-12)
- The confidential-protection hallmark should be revised so that it only applies where...
Paragraph (c)
Subparagraph (c)(i)
Clause (c)(i)(B)
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Narrowness of (c)(i)(B) exclusion from contractual protection (pp. 12-13)
- In a share sale, the vendor can be considered a “promoter” who has...
Subsection 237.3(2) - Application
Administrative Policy
Mandatory disclosure rules – Guidance, 15 August 2024 CRA Webpage
Footnote 2 (re "straddle transactions")
If a person enters into a series of transactions that straddle the effective date of designation, the...
Forms
RC312 Reportable Transaction Information Return (2011 and later tax years)
Part 9 – Detailed description of all the facts of the transaction and tax consequences
Describe the reportable transaction in chronological...
Articles
Lara Friedlander, Andrew S. McGuffin, "Canada To Enact New Tax Avoidance Reporting Rules", Tax Management International Journal, February 8, 2013,Vol. 42, No. 2, 90 at 92
Reporting each transaction in a series may require reporting over multiple taxation years, and it may be quite difficult to determine all...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 237.3 - Subsection 237.3(1) - Advisor | 66 |
Forms
Paragraph 237.2(3)(c)
Cases
Federation of Law Societies of Canada v. Canada (Attorney General), 2023 BCSC 2068
In the underlying constitutional challenge, the petitioner (the “Federation”) sought a declaration that ITA ss. 237.3 and 237.4 were of no...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation/Constitution - Charter (Constitution Act, 1982) - Section 7 | the application of ss. 237.3 and 237.4, pending the determination of their constitutional scope, to legal advisors is prohibited | 249 |
Administrative Policy
3 May 2022 CALU Roundtable Q. 2, 2022-0928701C6 - Mandatory Disclosure Rules
Ms. A, who is licensed to sell investment and insurance products, assists Mr. B, at the request of his tax advisor in purchasing one of such...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 237.3 - Subsection 237.3(1) - Reportable Transaction - Paragraph (a) | factors regarding whether a fee is described in para. (a) | 408 |
Articles
Federation of Law Societies of Canada, "Federation challenges Income Tax Act provisions", 12 September 2023 Press Release of the Federation
The Federation of Law Societies of Canada has filed a petition in the B.C. Supreme Court seeking inter alia declarations that ITA ss. 237.3 and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 237.4 - Subsection 237.4(4) - Paragraph 237.4(4)(c) | Federation of Law Societies of Canada seeks declaration that ss. 237.3 and 237.4 should be read down so as not to apply to lawyers | 413 |
Subparagraph 237.3(2)(c)(ii)
Articles
Jack Silverson, Matias Milet, Christopher Anderson, Andrew Spiro, "Canada’s Reportable Transaction Rules: A Measured Approach to Adviser Reporting", Tax Notes International, Vol. 111, No. 29, July 15, 2023
Under the revised reportable transaction rules, is a lawyer who assisted in negotiating contractual terms providing for contractual protection as...
Subsection 237.3(4)
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
S. 237.3(4) should be retained (pp. 7-8)
- S. 237.3(4) should not be repealed, and a similar rule should be included for notifiable transactions...
Subsection 237.3(5)
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Most disclosure can await the return (p. 4)
- The short reporting deadline should be restricted to information that warrants a short deadline,...
Subsection 237.3(9)
Articles
Joint Committee, "Reportable Transaction and Notifiable Transaction Proposals", 5 April 2022 Joint Committee Submission
Inappropriate joint and several liability (p. 18)
- It is unclear why the penalty provisions for failing to file an information return for...
Subsection 237.3(12.1)
Articles
Joint Committee, "Summary of Comments and Recommendations Provided to the Department of Finance on the General Anti-Avoidance Rule Proposals Released on March 28, 2023", Joint Committee Submission dated 7 June 2023
Without prejudice disclosures
- There should be a s. 245 rule stating that a disclosure filed under proposed s. 237.3(12.1) cannot be used as a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4.1) | 173 | |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(5.1) | 221 |