Subsection 55(2)

Cases

Ottawa Air Cargo Centre Ltd. v. The Queen, 2007 DTC 661, 2007 TCC 193, aff'd 2008 DTC 6177, 2008 FCA 54

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Canada v. VIH Logging Ltd., 2005 DTC 5095, 2005 FCA 36

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Words and Phrases
before

Canada v. Canadian Utilities Ltd., 2004 DTC 6475, 2004 FCA 234

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Lamont Management Ltd. v. The Queen, 2000 DTC 6256 (FCA)

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Words and Phrases
any

Canada v. Brelco Drilling Ltd., 99 DTC 5253 (FCA)

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The Queen v. Nassau Walnut Investments Inc., 97 DTC 5051 (FCA)

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The Queen v. Placer Dome Inc., 96 DTC 6562 (FCA)

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Words and Phrases
purpose

CPL Holdings Ltd. v. The Queen, 95 DTC 5253 (FCTD)

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Tax Topics - General Concepts - Onus 61

See Also

D & D Livestock Ltd. v. The Queen, 2013 DTC 1251 [at 1412], 2013 TCC 318

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729658 Alberta Ltd. v. The Queen, 2004 DTC 2909, 2004 TCC 474

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Kruco Inc. v. The Queen, 2001 DTC 668 (TCC), aff'd 2003 FCA 284

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Granite Bay Charters Ltd. v. The Queen, 2001 DTC 615 (TCC)

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Lamont Management Ltd. v. The Queen, 99 DTC 871 (TCC)

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943963 Ontario Inc. v. The Queen, 99 DTC 802 (TCC)

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Meager Creek Holdings Ltd. v. The Queen, 98 DTC 2073 (TCC)

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Brelco Drilling Ltd. (Formerly Trimac) v. The Queen, 98 DTC 1422 (TCC)

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Les Placements E&R Simard Inc. v. The Queen, 97 DTC 1328 (TCC)

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Deuce Holdings Ltd. v. The Queen, 97 DTC 921 (TCC)

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Gestion Jean-Paul Champagne Inc. v. MNR, 97 DTC 155 (TCC)

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454538 Ontario Ltd. v. MNR, 93 DTC 427 (TCC)

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Administrative Policy

29 November 2016 CTF Roundtable Q. 4, 2016-0671491C6 - 55(2) and Part IV Tax

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Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) s. 55(2) application to dividend as a result of a Pt IV tax refund does not generate CDA for on-payment of that dividend 269

9 October 2015 APFF Roundtable Q. 15, 2015-0595641C6 F - Surplus Stripping and GAAR

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Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) GAAR did not apply where a taxpayer deliberately triggered the application of s. 55(2) 125

9 October 2015 APFF Roundtable Q. 12, 2015-0595601C6 F - Proposed legislation - subsection 55(2)

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Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) transaction targeted at reducing FMV of Opco shares for creditor-proofing was caught 245

14 May 2015 CLHIA Roundtable Q. 5, 2015-0573821C6 - Safe income

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Tax Topics - Income Tax Act - Section 148 - Subsection 148(7) distribution to shareholder at CSV 141

10 October 2014 APFF Roundtable, 2014-0538061C6 F - Revenu protégé et fiducie

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

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Tax Topics - Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) Part IV tax on cross-redemptions takes into account the Part I tax (and RDTOH addition) generated by s. 55(2) application thereto 340

16 June 2014 STEP Roundtable, 2014-0522991C6 - Safe Income

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Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) s. 55(5)(f) designations are unnecessary 88

2012 Ruling 2011-0403291R3 - Treaty exempt sale

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Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition partnership distribution not disposition 64
Tax Topics - Treaties - Articles of Treaties - Article 13 Treaty step-up to avoid the application of s. 55(2) to a spin-off made to effect an arm's length sale of the rump 291

14 March 2014 Internal T.I. 2013-0499141I7 - IRC 338(h)(10), "earnings" and safe income

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Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings "notional" deduction arising from Code s. 338(h)(10) step-up excluded 129
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Exempt Earnings no carve out for goodwill gains 132
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(2) - Paragraph 5907(2)(f) "notional" deduction arising from Code s. 338(h)(10) step-up of non-purchased goodwill reversed under Reg. 5907(2)(f) rather than (b) 433

14 February 2014 External T.I. 2012-0454481E5 F - Safe Income

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Tax Topics - Income Tax Act - Section 34.2 - Subsection 34.2(11) discretionary deduction 54

21 March 2014 External T.I. 2012-0471021E5 - Safe income and section 34.2

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11 October 2013 APFF Roundtable, 2013-0495851C6 F - Safe income adjustments

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Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base CRA post-closing adjustments of target income 84

16 November 2011 External T.I. 2011-0423861E5 F - paragraph 53(1)b)

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12 December 2011 External T.I. 2011-0416801E5 F - Safe Income on Hand - Stub Period

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6 December 2011 External T.I. 2011-0423181E5 F - Safe Income

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Income Tax Technical News, No. 34, 27 April 2006 under "Safe Income Calculation"

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3 June 2003 External T.I. 2003-001207 -

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14 December 2000 External T.I. 2000-003403 -

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11 December 2000 External T.I. 2000-005316 -

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2000 Ruling 2000-0003253 -

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13 April 2000 T.I. 2000 - 000792

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1999 Ruling 3-991044 -

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1999 APFF Round Table, Q. 4 (No. 9M19190)

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29 June 1998 External T.I. 5-980210 -

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17 September 1997 T.I. 972141

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29 August 1997

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26 August 1997 T.I. 971365

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16 June 1997 External T.I. 5-971100 -

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17 March 1997 T.I. 963272

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16 July 1996 External T.I. 5-960491 -

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6 May 1996 T.I. 961124 (C.T.O. "Safe Income - Provision for Capital Item, Dividends")

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Income Tax Technical News, No. 7, 21 February 1996

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1996 Ontario Tax Conference Round Table, "Purpose Test in Subsection 55(2)", 1997 Canadian Tax Journal, Vol. 45, No. 1, pp. 231-214

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5 July 1995 External T.I. 5-941606 -

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10 April 1995 T.I. 950469 (C.T.O. "Same Income, Feb. 22, 1994 Election")

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28 March 1995 T.I. 943095 (C.T.O. "Safe Income Stock Splits")

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27 October 1994 T.I. 941436 (C.T.O. "Safe Income - Foreign Affiliates (H.A.A. 5102-3)")

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20 July 1994 T.I. 940879

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94 CPTJ - Q. 1

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3 May 1993 T.I. 923639 (C.T.O. "Safe Income and Part IV Tax")

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20 July 1994 T.I. 940879 (C.T.O. "55(2)")

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6 April 1994 T.I. 933171 (C.T.O. "Safe Income and SRED Expenditures")

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93 C.R. - Q. 15

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93 C.R. - Q. 12

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Calgary District Office Round Table, 3 May 1994, Q. 17

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31 August 1993 Memorandum (Tax Window, No. 33, p. 4, ¶2639)

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2 February 1993 T.I. (Tax Window, No. 28, p. 5, ¶2414)

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20 October 1992 T.I. 910248 (September 1993 Access Letter, p. 413, ¶C38-174)

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92 C.R. - Q.35

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92 C.R. - Q.29

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28 July 1992 External T.I. 5-920803 -

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10 January 1992 Memorandum (Tax Window, No. 17, p. 12, ¶1773)

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10 January 1992 Memorandum (Tax Window, No. 17, p. 12, ¶1773)

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24 February 1992 Memorandum (Tax Window, No. 13, p. 13, ¶1630)

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23 January 1992 T.I. (Tax Window, No. 12, p. 6, ¶1574)

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6 June 1991 T.I. (Tax Window, No. 4, p. 12, ¶1282)

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15 May 1991 T.I. (Tax Window, No. 3, p. 18, ¶1239)

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13 March 1991 T.I. (Tax Window, No. 1, p. 20, ¶1140)

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26 November 1990 T.I. (Tax Window, Prelim. No. 2, p. 7, ¶1037)

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90 C.P.T.J. - Q.20

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29 June 1990 T.I. (November 1990 Access Letter, ¶1516)

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June 1990 Meeting of Alberta Institute of Chartered Accountants (November 1990 Access Letter, ¶1499, Q. 7)

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30 April 1990 T.I. (September 1990 Access Letter, ¶1415)

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23 March 1990 T.I. (August 1990 Access Letter, ¶1376)

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23 February 1990 T.I. (July 1990 Access Letter, ¶1322)

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12 January 1990 T.I. (June 1990 Access Letter, ¶1258)

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10 January 1990 T.I. (June 1990 Access Letter, ¶1259)

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5 December 1989 T.I. (May 1990 Access Letter, ¶1216)

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15 November 89 T.I. (April 90 Access Letter, ¶1187)

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Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) 98

89 C.R. - Q.12

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October 1989 Revenue Canada Round Table - Q.5 (Jan. 90 Access Letter, ¶1075)

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88 C.R. - F.Q.36

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80 C.R. - Q.4

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Articles

Bruce Ball, Ken Griffin, Rick McLean, Eric Xiao, "Subsection 55(2) material and Part IV", Submission of the Joint Committee, 13 October 2016

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Bruce Sinclair, "Current Topics in the Taxation of Real Estate Development", 2014 Conference Report, (Canadian Tax Foundation), 12:1-24.

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K. A. Siobhan Monaghan, Taxation of Corporate Reorganizations, Chapter 8: Capital Gains Strips and Divisive Reorganizations," (2010, Carswell).

Rick McLean, Understanding Section 55 and Butterfly Reorganizations, 3rd Ed. (2010, CCH).

Matt MacInnis, "Pandora's Box Reopened", CA Magazine, September 2008, p. 48.

Steve Suarez, Firoz Ahmed, "Public Company Non-Butterfly Spinouts", 2003 Conference Report, c. 32.

F. Ahmed, "Allocation of Safe Income to Minority Shareholders", Canadian Current Tax, Vol. 9, No. 3, p. 24.

D. Ewens, "Planning for Safe Income Distribution", Corporate Structures and Groups, Vol. IV, No. 4, 1997, p. 228

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"Subsection 55(2): Part 1", 1997 Canadian Tax Journal, Vol. 45, No. 2, p. 343.

Hiltz, "Income Earned or Realized: Some Reflections", 1991 Conference Report, c. 15.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 127 - Subsection 127(5) 0

Richter, "The Removal of Accrued Gains and Capital Stockholdings through the Use of 'Safe Income'", 1991 Canadian Tax Journal, p. 1349.

Paragraph 55(2)(b)

Administrative Policy

9 March 2016 External T.I. 2016-0630281E5 F - Redemption of shares and changes to 55(2)

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Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) exemption of s. 84(3) deemed dividend not exceeding safe income 144
Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) s. 55(2) application to separate dividend 103

Paragraph 55(2)(c)

Administrative Policy

31 August 2011 External T.I. 2011-0415891E5 F - Increase in stated capital, stock dividends -55(2)

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Paragraph 55(5)(d)

Articles

Paul Dhesi, Korinna Fehrmann, "Integration Across Borders", Canadian Tax Journal, (2015) 63:4, 1049-72

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