Section 237.3

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...

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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...

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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...

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Confidential Protection

Contractual Protection

Administrative Policy

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...

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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...

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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...

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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. ...

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Paragraph (a)

Administrative Policy

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...

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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...

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Paragraph (b)

Articles

Paragraph (c)

Subparagraph (c)(i)

Subsection 237.3(2) - Application

Administrative Policy

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...

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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...

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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...

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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...

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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...

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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...

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Words and Phrases
in respect of

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...

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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,...

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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...

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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...

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