Subsection 80.01(3) - Deemed settlement on amalgamation
Administrative Policy
2 August 2016 External T.I. 2014-0544941E5 F - Interaction between ss. 111(12) and 80.01(3)
CRA considered that where a Canadian target is indebted to a subsidiary under a U.S.-dollar loan with an accrued foreign exchange loss and it is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(12) | no accrued FX loss on a loan owing by a target to a sub is realized on an AOC where there is a same-day amalgamation and no time-stamping | 251 |
S4-F7-C1 - Amalgamations of Canadian Corporations
1.92 …The provision applies where an indebtedness (including a distress preferred share), as referred to in subsection 80.01(3), owed by one...
2014 Ruling 2013-0479701R3 - Transfer of US dollar loan
Current structure
Holdco2, which is wholly-owned by Mr. X (a Canadian resident), made seven non-interest-bearing demand U.S-dollar loans...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) | amendment of non-interest bearing loan to be interest-bearing | 34 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(e.1) | s. 40(2)(e.1) trumped s. 40(2)(g)(ii) so that US Loan ACB preserved | 207 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) | s. 40(2)(e.1) trumped s. 40(2)(g)(ii) so that US Loan ACB preserved | 122 |
Subsection 80.01(4) - Deemed settlement on winding-up
Administrative Policy
2014 Ruling 2013-0514191R3 - Debt restructuring, forgiveness and winding-up
Currrent structure
Canco1 holds all the outstanding voting shares of Canco3, and also is obligated to Canco3 under non-interest-bearing...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Principal Amount | non-application of s. 39(2) to exchange of U.S.-dollar notes | 142 |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) | s. 51.1 exchange of U.S.-dollar notes | 142 |
| Tax Topics - Income Tax Act - Section 51.1 | s. 51.1 exchange of U.S.-dollar notes | 142 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f.1) | 0 |
4 April 2014 External T.I. 2014-0522501E5 - Cancellation of ATR-66
ATR-66, which contained out-of-date statutory references, was cancelled effective September 30, 2012. This "cancellation…does not represent a...
2012 Ruling 2012-0451431R3 - Loss Consolidation
LossCo, which is insolvent, and ProfitCo, are both indirect subsidiaries of a foreign parent. LossCo is indebted to ProfitCo under the LossCo...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) | ATR-66 elimination of debt to make Lossco solvent; roll-in/distribution out (one-day after roll in) of appreciated depreciables to use its losses | 435 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | addition of conversion right | 125 |
| Tax Topics - Income Tax Act - Section 51.1 | intercompany debt conversion to senior and junior note and elimination of junior note | 27 |
2012 Ruling 2012-0452821R3 - Forgiveness of debt
Aco is a Canadian public company holding interest-bearing promissory notes (Bco Notes) and shares of a Canadian subsidiary (Bco). ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount | debt for debt-and-equity exchange structured to reduce s. 80 hit | 417 |
2012 Ruling 2011-0426051R3 - Debt Restructuring
Opco is a Canadian resource company whose liabilities far exceed the value of its assets. It is the indirect subsidiary of a foreign parent and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(e.1) | use of s. 53(1)(f.11) bump on debt shuffle to avoid forgiveness under s. 80.01(4) | 354 |
2009 Ruling 2008-0300161R3 - Debt restructuring and forgiveness
Background
Parent, which is in CCAA proceedings, owns all but one share of Forco, which was incorporated outside Canada but whose central...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 51.1 | application to conversion of U.S. dollar note | 231 |
2009 Ruling 2009-0313921R3 - Wind-up of creditor into debtor
Ruling that when a Canadian debtor is wound-up into its Canadian parent and an election under s. 80.01(4)(c) is made, then, in light of s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(k) | 37 |
21 December 2004 Internal T.I. 2004-0096211I7 F - Remise de dettes
A subsidiary (Subco) whose net asset value exceeded an amount owing by it to its parent (Parentco) was wound up into its parent pursuant to s....
Subsection 80.01(6) - Specified obligation in relation to debt parking
Administrative Policy
28 October 2014 Internal T.I. 2014-0529981I7 - Allocation of partnership loss to a former partner
The Taxpayer entered into the "Purchase Agreement" for the purchase of a limited partnership (the "Partnership") with substantial current losses....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 103 - Subsection 103(1) | allocation of full loss to purchasing partner at year end | 197 |
18 July 1995 Internal T.I. 9517617 - DEBT PARKING
S.80.01(8) would, but for the 80% role, have applied in the situation where OBCO, which is owned on a 50/50 basis by an individual (X) and an...
Subsection 80.01(8) - Deemed settlement after debt parking
Administrative Policy
31 March 2016 External T.I. 2014-0524391E5 F - Debt parking
Do ss. 53(1)(f.1) and 80.01(8) apply simultaneously when Corporation "X" disposes of its debt of a wholly-owned corporation to another taxable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f.1) | application of s. 53(1)(f.1) subsequent to application of debt parking rule | 130 |
8 August 2014 External T.I. 2014-0524951E5 - Debt forgiveness; liability on dissolution
If the Canadian-resident "Individual" makes a s. 50(1) election respecting a loan owing to him by an insolvent CCPC of which he is the sole...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(a) | meaning of "settle" | 96 |
14 October 1998 Internal T.I. 9726727 - DEBT PARKING - SS 50(1) AND 80.01(8)
Where a Canadian parent made a non-interest bearing advance to its wholly-owned subsidiary, if the parent elects under s. 50(1), s. 40(2)(g)(ii)...
23 January 1996 External T.I. 9527905 F - ARTICLE 79 ET 80
"Section 79 has priority over section 80 except if paragraph 80.01(8) has applied in a previous year." [Translation]
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 79.1 - Subsection 79.1(6) | 21 | |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount | 19 |
Subsection 80.01(9) - Statute-barred debt
Administrative Policy
5 October 2012 APFF Roundtable, 2012-0454081C6 F - Statute-barred debt
An adult son was lent $100,000 by his father under a demand promissory note. The prescription period under the Quebec Civil Code was three years,...
Subsection 80.01(10)
Administrative Policy
22 March 2005 Internal T.I. 2005-0115451I7 F - Extinction d'une remise de dette
The creditor forgave a debt pursuant to an agreement with an improved fortunes clause, such that the forgiveness was subsequently cancelled. After...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount | no deduction where forgiven debt is subsequently restored pursuant to improved fortunes clause | 120 |
| Tax Topics - General Concepts - Effective Date | CRA assesses based on the state of affairs at year end | 103 |