Subsection 66.7(2) - Successor of foreign exploration and development expenses
Administrative Policy
13 November 1991 T.I. (Tax Window, No. 13, p. 5, ¶1593)
A Canadian resource property is acquired with a foreign resource property only if they are acquired at the same time.
Subsection 66.7(3) - Successor of Canadian exploration expense
Administrative Policy
11 August 2020 Internal T.I. 2018-0782181I7 - Successored CCEE and Non-Capital Losses
Can a principal-business corporation create or increase a non-capital loss with a deduction for successored cumulative Canadian exploration...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 3 - Paragraph 3(c) | s. 3(c) deduction (e.g., under s. 67.3) cannot generate a non-capital loss | 92 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense | successored resource expenses are not deductible under s. 9 | 165 |
94 C.P.T.J. - Q. 11
Where there is an acquisition of control of Company A thereby causing Company A's resource pools to be successored, and Company A subsequently...
31 August 1992 Memorandum (Tax Window, No. 23, p. 16, ¶2165)
There is no requirement in s. 66.7 for the successor to have an interest in the Canadian resource property by reference to which it is taking the...
Articles
Carr, "The Successor Corporation Rules after Bill C-18", 1992 Canadian Tax Journal, No. 6, p. 1261.
Subsection 66.7(5) - Successor of Canadian oil and gas property expense
Administrative Policy
10 October 2006 Internal T.I. 2006-0169051I7 - Successor Pool Issues
Given that the successor provisions concern income attributable to "production from the particular property", rather than income attributable to...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 103 - Subsection 103(1) | 45 |
Subsection 66.7(7) - Application of s. 29(25) of ITAR and ss. (1), (3), (4) and (5)
Administrative Policy
S4-F7-C1 - Amalgamations of Canadian Corporations
1.56 In the case of an amalgamation to which subsection 87(1.2) does not apply, any undeducted balance in a predecessor corporation's resource...
12 June 1992 Memorandum (Tax Window, No. 21, p. 9, ¶2019)
Discussion whether the limitations in s. 66.7 apply where a corporation ("A") carrying on both a mining business and an oil and gas business and...
90 C.P.T.J. - Q.35
Since resource pools are neither Canadian resource properties nor foreign resource properties, no value need be assigned to them for the purposes...
Subsection 66.7(10) - Change of control
Articles
Gregory M. Johnson, Wesley R. Novotny, "An Update on Flow-through Shares in the Energy Sector", 2016 Conference Report (Canadian Tax Foundation),12:1-39
Successoring rules not an issue for flow-through shares (p. 12:18)
...[S]ubsection 66.7(10) stipulates that it does not apply for the operative...
Paragraph 66.7(10)(j)
Cases
Devon Canada Corporation v. The Queen, 2013 TCC 415
Following an acquisition of control of a predecessor of the taxpayer (Home Oil), a partnership of which Home Oil was a direct member (the Anderson...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 102 - Subsection 102(2) | source preservation in 2-tier partnership | 84 |
Administrative Policy
15 March 2012 External T.I. 2012-0432931E5 - Partnership property of successor corporation
Where the corporation is a member of a partnership which, in turn, is a member of a lower-tier partnership, s. 66.7(1)((j) applies on the basis...
Articles
Marshall Haughey, "Tiered Partnerships: Successor Rules", Canadian Tax Highlights, Vol. 22, No. 2, February 2014, p. 13.
Creation of 2-tier partnership structure before v. after acquisition of control (p. 14)
Interestingly, if the tiered partnership structure in...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 66.7 - Subsection 66.7(16) | 239 |
Subsection 66.7(16) - Non-successor acquisitions
Administrative Policy
2023 Ruling 2022-0941241R3 - Internal reorganization: subs and partnerships
After preliminary transactions, ParentCo and its historic subsidiary, SubCo were to be the only partners of a general partnership (Partnership C);...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) | sequential wind-ups of child, then grandchild, respected notwithstanding that their dissolutions held in abeyance until resolution of litigation with CRA | 968 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) | application of s. 98(5) on two successive windings-up of partnerships into parent because of the s. 88(1) wind-up of partner into parent | 267 |
Articles
Brian R. Carr, "Devon Canada Corporation v. The Queen", Resource Sector Taxation (Federated Press), Vol. IX, No. 4, 2014, p. 677.
Background to introduction of s. 66.7(1)(j) (p.678)
It has long been the position of the Canada Revenue Agency ("CRA") that a taxpayer does not...
Marshall Haughey, "Tiered Partnerships: Successor Rules", Canadian Tax Highlights, Vol. 22, No. 2, February 2014, p. 13.
Transfer of successored property to a partnership (pp. 14-5)
It is also interesting that the Crown did not argue subsection 66.7(16) [in Devon, The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 66.7 - Subsection 66.7(10) - Paragraph 66.7(10)(j) | 115 |