Subsection 260(1) - Definitions
Securities Lending Arrangement
See Also
Barnes v. Revenue and Customs Commissioners, [2014] BTC 5, [2014] EWCA Civ 31
A tax avoidance scheme under which the taxpayer was targeted to receive a double deduction for accrued interest on gilts transferred to him...
Newton v. Commissioner of Taxation of the Commonwealth of Australia, [1958] A.C. 450 (PC)
Before finding that dividend stripping transactions were void for taxation purposes by virtue of s. 260 of the Commonwealth Income Tax and Social...
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| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | 51 |
Administrative Policy
5 June 2001 Internal T.I. 2000-0053047 - REVERSE REPURCHASE TRANSACTION
Before going on to indicate that cash transferred by a bank to a customer in exchange for shares transferred to it pursuant to the standard-form...
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| Tax Topics - Income Tax Regulations - Regulation 404 - Subsection 404(1) | 32 |
26 November 1996 External T.I. 9638145 - SECURITIES LENDING
"A partnership is not considered to be a 'person' or a 'taxpayer' for the purposes of section 260 ... and its partners would not be accorded the...
18 November 1996 External T.I. 9637095 - sla
For purposes of paragraph 260(1)(a) of the definition of SLA, it is only necessary that the parties to the arrangement be at arm's length at the...
23 April 1992 Memorandum 921211 (September 1992 Access Letter, p. 39)
A situation in which a securities dealer would borrow a share on which either a cash dividend, or a stock dividend valued at a 5% discount from...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Dividend Rental Agreement | 82 |
Articles
William W. Chip, "Are Repos Really Loans?", Tax Notes International, 27 May 2002, p. 1011.
Brown, "How to Spot the Difference Between Repos and Stock Loans", International Financial Law Review, June 1996, p. 51.
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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 0 |
Subsection 260(2) - Non-disposition
Administrative Policy
2019 Ruling 2018-0776381R3 - Part XIII tax under a reverse repo agreement
In a reverse repo, ACo, a resident, purchases bonds for $X in cash from an affiliated non-resident (BCo) and it is agreed that the bonds will...
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| Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b) | the negative repo spread on a reverse repo was not interest | 231 |
24 April 1995 External T.I. 9427715 - SECURITIES LENDING
Notwithstanding that the lender is deemed not to have disposed of the securities, the borrower is not deemed not to have acquired the securities.
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|---|---|---|
| Tax Topics - Income Tax Act - Section 260 - Subsection 260(8) | 63 | |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 126 |
Articles
Morrow, "Repo, Reverse Repo and Securities Lending Markets in Canada", Bank of Canada Review, Winter 1994-1995, p. 61.
Barnes, Spector, "Cross-Border Securities Lending Payments: Income and Search of a Character", [Tax Management International], p. 295
A U.S. perspective.
Malach, "Securities Lending and Dividend Rental Arrangements and Preferred Share Financing - An Update", Tax Profile, October 1990, p. 33.
Hayos, "Security Lending and Dividend Rentals: What They Are and the Tax Implications", 1989 Conference Report, c. 25.
Subsection 260(8) - Non-resident withholding tax
Administrative Policy
2002 Ruling 2002-0152203 - SECURITIES LENDING ARRANGEMENT
A mutual fund trust invests its U.S. cash by entering into repo transactions with non-resident counterparties. "The Fund will not be able to...
9 June 1994 TI HCW 1083-6
RC generally will accept that the bid-offer spread (which would normally be determinable by comparing the interest rate differential an...
4 August 1999 External T.I. 9908885 - TOTAL RETURN SWAPS
"You have inquired how, in order to fulfill the requirement of that provision that the borrower must 'be entitled to enjoy ... the benefits of...
24 April 1995 External T.I. 9427715 - SECURITIES LENDING
A lending fee involving non-arm's length parties would not be deemed by s. 260(8)(b) to be interest. Instead the lending fee either would be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 260 - Subsection 260(2) | 26 | |
| Tax Topics - Income Tax Act - Section 9 - Computation of Profit | 126 |
Articles
Philip D. Morrison, "Stock Lending Transactions and U.S. Withholding Tax", Tax Management International Journal, Vol. 42, No. 6, June 14, 2013, p. 361
At the article's beginning, Morrison discusses the US situation before 1997, when final regulations were published providing that substitute...
Subsection 260(11) - Corporate members of partnerships
Paragraph 260(11)(c)
Administrative Policy
24 March 2014 External T.I. 2013-0495461E5 - Paragraph 260(11)(c) of the Income Tax Act
How does s. 260(11)(c) apply to a professional corporation that is a member of a partnership respecting a dividend refund claim for dividend...