Section 80.01

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...

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 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...

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 100 - Subsection 100(2.1) s. 100(2.1) applies to non-qualifying amalgamation 64
Tax Topics - Income Tax Act - Section 111 - Subsection 111(12) application following amalgamation 113
Tax Topics - Income Tax Act - Section 116 - Subsection 116(1) deemed tcp following amalgamation 167
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.1) continuity of s. 13(5.1) on amalgamation 132
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) Amalco can continue objection and receive refunds 157
Tax Topics - Income Tax Act - Section 169 Amalco can continue objection 103
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(n) reserve after amalgamation 62
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Shareholder shareholder need not hold shares 88
Tax Topics - Income Tax Act - Section 251 - Subsection 251(3.1) deemed non-arm's length relationship on amalgamation 172
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(b) related party, majority and 50% group exceptions 495
Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) reserve after amalgamation 62
Tax Topics - Income Tax Act - Section 66.7 - Subsection 66.7(7) successoring where non-wholly owned amalgamation 109
Tax Topics - Income Tax Act - Section 69 - Subsection 69(13) no disposition of predecessor property on general principles 113
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.4) s. 87(5) not applicable 112
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) no deemed dividend to dissenter on amalgamation 87
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) election filing by Amalco 109
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.1) s. 87(1.1) qualifies for all s. 87 purposes 66
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.2) successoring where non-wholly owned amalgamation 109
Tax Topics - Income Tax Act - Section 87 - Subsection 87(10) deemed listing of temporary Amalco shares 120
Tax Topics - Income Tax Act - Section 87 - Subsection 87(11) gain if high PUC is sub shares 55
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1) presumptive satisfaction of s. 87(1)(a)/dissent and squeeze-outs onside 297
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) new corp/deemed year end coinciding or not with acquisition of control 758
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(b) Amalco must follow predecessor's valuation method subject to truer picture doctrine 64
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(c) reserve after amalgamation 113
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(d) cost amount carryover 149
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(e.1) s. 100(2.1) applies to non-qualifying amalgamation 64
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(o) no continuity rule for non-security options 139
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(q) pre-amalgamation services 106
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.11) loss-carry back to parent 169
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.1) dovetailing with s. 88(1.1) 44
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3.1) 346
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3) PUC shifts 189
Tax Topics - Income Tax Act - Section 87 - Subsection 87(4) fractional share cash/ACB or value shift/implied non-recognition for predecessor shares 281
Tax Topics - Income Tax Act - Section 87 - Subsection 87(7) dovetailing with s. 78 and 112(12) 191
Tax Topics - Income Tax Act - Section 87 - Subsection 87(9) allocation of s. 87(9)(c)(ii) excess as parent chooses 230
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) late designation 122
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1.1) dovetailing with s. 87(2.1) 62
Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) partnership dissolution on amalgamation 137
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) deemed non-arm's length relationship on amalgamation 467
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) deemed non-arm's length relationship on amalgamation 371
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(14) class continuity on non-arm's length amalgamation 327
Tax Topics - Income Tax Regulations - Regulation 8503 - Subsection 8503(3) - Paragraph 8503(3)(b) pre-amalgamation services 106
Tax Topics - Income Tax Act - Section 249 - Subsection 249(3) 136
Tax Topics - Income Tax Act - Section 22 - Subsection 22(1) 179

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...

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 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...

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 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...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

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...

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 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). ...

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 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...

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 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...

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 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....

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

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....

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

ATR-66 (Cancelled) 20 April 1995.

Proposed transactions
  1. Holdco, a CBCA corporation, will transfer its note (the Opco note) of Opco (its wholly-owned CBCA subsidiary) to a newly...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

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....

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 - 101-110 - 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...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

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...

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 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...

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 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)...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

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]

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,...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

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...

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 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