Subsection 84.1(1) - Non-arm’s length sale of shares
Cases
Wild v. Canada (Attorney General), 2018 FCA 114
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | surplus-stripping transactions were not subject to GAAR before the surplus had in fact been stripped | 377 |
Fiducie famille Gauthier v. Canada, 2012 FCA 76, aff'g 2011 DTC 1343 [at 1917], 2011 TCC 318
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - General Concepts - Fair Market Value - Shares | 258 |
See Also
Crean v Canada (Attorney General), 2019 BCSC 146
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - General Concepts - Rectification & Rescission | a sale agreement rectified to turn it into a 2-step sale that no longer generated a s. 84.1 dividend | 301 |
1245989 Alberta Ltd. v. The Queen, 2017 TCC 51, rev'd sub nom. Wild v. Canada, 2018 FCA 114
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | use of PUC-averaging rule to bump outside PUC was abusive | 273 |
Tax Topics - Income Tax Act - Section 245 - Subsection 245(5) | assessment of PUC without current income effect | 34 |
Poulin v. The Queen, 2016 TCC 154, briefly aff’d sub nomine Turgeon v. The Queen, 2017 FCA 103
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | sale to the special-purpose Holdco of an independent employee was essentially a surplus-stripping transaction rather than an arm’s length sale | 635 |
Fiducie Famille Gauthier v. The Queen, 2011 DTC 1343 [at 1917], 2011 TCC 318, aff'd 2012 FCA 76
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Words and Phrases
considerationLocations of other summaries | Wordcount | |
---|---|---|
Tax Topics - General Concepts - Substance | 233 |
Estate of the late Donald Mills v. The Queen, 2010 DTC 1301 [at 4078], 2010 TCC 443, aff'd 2011 DTC 5124, 2011 FCA 219
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) | no bad debt if deemed dividend | 77 |
McMullen v. The Queen, 2007 DTC 286, 2007 TCC 16
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | 270 | |
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 198 | |
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | mutual benefit and same advisors insufficient to establish non-arm's length in structured sale transaction | 257 |
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | 229 |
Lloyd v. The Queen, 2002 DTC 1493 (TCC)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - General Concepts - Effective Date | taxpayer can attack own transaction as legally ineffective | 130 |
Tax Topics - General Concepts - Tax Avoidance | taxapyer can argue legally ineffective transactions | 131 |
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 1 - Paragraph 1(q) | 64 |
Administrative Policy
7 July 2010 External T.I. 2010-0370611E5 F - Purchase of Shares by Subsidiary - Sec. 245
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | position that an individual potentially can realize a capital gain by selling shares to a Newco sub of the corporation for cash does not depend on there being a s. 87 or 88 merger of Newco and the corporation | 264 |
1 October 2010 External T.I. 2010-0378681E5 F - Déduction pour gain en capital
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
29 November 2016 CTF Roundtable Q. 6, 2016-0669661C6 - 84.1 and the Poulin/Turgeon Case
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(ii) | right of GREs to carry forward donations for five years | 109 |
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | touchstones for accommodation party | 184 |
7 October 2016 APFF Roundtable Q. 20, 2016-0655831C6 F - Employee Buycos and the Poulin Case
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | Poulin distinction between accommodation parties and tax advantaged arm’s length dealings accepted | 188 |
2 May 2016 External T.I. 2016-0633351E5 F - Descarries Case and Document no. 2015-0610711C6
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | Descarries not to be construed narrowly | 176 |
24 November 2015 CTF Roundtable Q. 11, 2015-0610711C6 - Impact of the Descarries decision
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | contrary to GAAR to use basis stepped up under CGD to create a capital loss permitting surplus extraction | 494 |
2014 Ruling 2014-0526361R3 F - Post Mortem Pipeline
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | step up of PUC of freeze pref shares for purposes of pipeline transaction | 315 |
25 November 2012 CTF Roundtable, 2013-0479402C6 - Employee Buycos - comments from CRA Panel
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | stock option share Buyco not at arm's length | 202 |
3 July 2012 External T.I. 2012-0443421E5 F - 84.1 and partnership
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | s. 245(2) has been applied to the use of a partnership to avoid s. 84.1 | 536 |
7 October 2011 Roundtable, 2011-0412121C6 F - Interaction between S. 84.1 and S. 85(2.1)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Words and Phrases
applyLocations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 85 - Subsection 85(2.1) | s. 85(2.1) does not apply where s. 84.1(1) applies even if there is no grind under the s. 84.1(1)(a) formula | 166 |
5 October 2007 APFF Roundtable Q. 10, 2007-0243171C6 F - Surplus Stripping
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | leveraged Employeeco buyout could be an arm’s length transaction | 127 |
12 January 2005 External T.I. 2004-0106161E5 - Application of par. 84.1(1)(b) on a sale of shares
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
9 January 2004 External T.I. 2003-0037425 - Application of Section 84.1
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
28 March 2003 External T.I. 2002-016665 -
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | 145 |
4 November 1998 External T.I. 9801695 - WHETHER A PARTNERSHIP IS A TAXPAYER
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
23 December 1993 External T.I. 9326885 F - "FACTUAL" ARM'S LENGH NATURE
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
1993 A.P.F.F. Round Table Q. 4
29 January 1990 T.I. (June 1990 Access Letter, ¶1264)
18 December 1989 T.I. (May 1990 Access Letter, ¶1220)
October 1989 Revenue Canada Round Table - Q.11 (Jan. 90 Access Letter, ¶1075)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 48 | |
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | 73 |
18 Aug. 89 T.I. (Jan. 90 Access Letter, ¶1082)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(2.1) | 67 | |
Tax Topics - Income Tax Act - Section 84 - Subsection 84(5) | 87 |
Articles
Anthony Strawson, Timothy P. Kirby, "Vendor Planning for Private Corporations: Select Issues", 2017 Conference Report, (Canadian Tax Foundation), 11:1-28
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
David Wilkenfeld, "Section 84.2 Update", Tax for The Owner-Manager, Vol. 2, No. 1, January 2002.
Paragraph 84.1(1)(b)
Administrative Policy
11 October 2019 APFF Roundtable Q. 1, 2019-0819401C6 F - Interaction between par. 84.1(1)(b) and 129(1(a)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | reversal of position that s. 84.1(1)(b) dividends do not generate dividend refunds | 144 |
25 November 2012 Roundtable, 2013-0479401C6 F - Employés et Achat Ltée commentaires panel ARC
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | Buyco that is formed by employer to purchases departing employees’ shares is NAL | 118 |
5 October 2012 APFF Roundtable, 2012-0454091C6 F - GRIP and deemed dividend pursuant to 84.1(1)(b)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 89 - Subsection 89(14) | s. 84.1 deemed dividend paid to an individual could be an eligible dividend notwithstanding him not being a shareholder of the payer | 257 |
Subsection 84.1(2) - Idem [Non-arm’s length sale of shares]
See Also
Administrative Policy
25 July 1994 External T.I. 9407865 - 85(4)
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Paragraph 84.1(2)(a.1)
See Also
Pomerleau c. La Reine, 2016 TCC 228, aff'd 2018 FCA 129
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | abusive avoidance of s. 84.1 by converting soft into hard ACB | 261 |
Côté-Létourneau v. The Queen, 2010 DTC 1116 [at 3092], 2007 TCC 91
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Words and Phrases
acquisitionAdministrative Policy
2017 Ruling 2016-0629511R3 - Post-Mortem Planning and Extraction of "Hard ACB"
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | pipeline transfers of shares with both “soft” and “hard” ACB | 663 |
9 October 2015 APFF Roundtable Q. 14, 2015-0595631C6 F - Indirect Monetization of CGD
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | Descarries not consistent with use of ACB on a previous capital gains crystallizatin to create a capital loss for use on a sale | 169 |
Finance
2017 CTF Finance Roundtable, Q.9
Articles
Joint Committee, "Part D of Tax Planning Using Private Corporations – “Converting Income into Capital Gains” Proposals", 2 October 2017 Joint Committee Submission
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 246.1 | 490 |
Subparagraph 84.1(2)(a.1)(ii)
Cases
Pomerleau v. Canada, 2018 FCA 129
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | purpose of s. 84.1 was broader than the application of its words | 487 |
Administrative Policy
28 May 2010 External T.I. 2010-0359871E5 F - Déduction pour gain en capital
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(2.1) | deduction available on NAL disposition inter vivos or on death | 141 |
Paragraph 84.1(2)(b)
Administrative Policy
23 June 2010 Internal T.I. 2010-0368161I7 F - 84.1
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 84.1 - Subsection 84.1(2.2) - Paragraph 84.1(2.2)(b) | s. 84.1(2.2)(b) group can include a non-voting shareholder | 125 |
Subsection 84.1(2.1)
Subsection 84.1(2.2)
Paragraph 84.1(2.2)(b)
Administrative Policy
23 June 2010 Internal T.I. 2010-0368161I7 F - 84.1
The text of this content is paywalled Mon.-Fri. except for the 1st full week of each month. Subscribe or log in for unrestricted access.
Locations of other summaries | Wordcount | |
---|---|---|
Tax Topics - Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(b) | s. 84.1(2)(b) inapplicable to individual’s transfer of ½ of Opco to Holdco (owned by 3 unrelated individuals) for note and non-voting pref | 212 |