Subsection 86.1(2) - Eligible distribution
Cases
Morasse v. The Queen, 2004 DTC 2435, 2004 TCC 239 (Informal Procedure)
The taxpayer, who held American Depositary Receipts for a Mexican public company (Telmex) became the owner of an equal number of shares of another...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 116 | |
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(1) | 158 |
Administrative Policy
25 November 2021 CTF Roundtable Q. 3, 2021-0912101C6 - 86.1 exchange of shares
US Pubco (a US-listed corporation) will package (pursuant to a Canadian butterfly) one of its businesses into a new US corporation (US Pubco...
14 January 2020 Internal T.I. 2018-0785991I7 F - Subsection 86.1(2)
At all times, the central management and Parentco, and its newly-incorporated subsidiary (Splitco), consisted of two actively-traded classes of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Common Share | tracking shares were common shares | 114 |
2014 Ruling 2014-0530961R3 - Cross-Border Butterfly
In connection with a spin-off by a U.S. public company (Foreign PubCo) of a U.S. subsidiary (Foreign Spinco) to which one of its businesses was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution | U.S./Cda b/f including conversion of Foreign Spinco and TC from fiscally disregarded to regarded for Code purposes/2-stage transfer to TC of cash assets/post-b/f dividend by DC/s. 86.1 treatment/proportionate allocation of Foreign Spinco debt | 1479 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(b) - Subparagraph 55(3.1)(b)(i) | pro rata allocation of Foreign Spinco debt | 180 |
10 October 2014 APFF Roundtable Q. 4, 2014-0534831C6 F - 2014 APFF Roundtable, Q. 4 - Late-filed 86.1 election & 220(3.5) penalty
Is the making of a late election generally accepted without application of the penalty of $100 per month if the absence of a timely election is...
8 October 2004 APFF Roundtable Q. 2, 2004-0085671C6 F - Scission d'entreprise - choix de 86.1
CRA provided a general listing of sources of CRA assistance and information on s. 86.1.
17 September 2001 External T.I. 2001-0098635 F - Spin-off - T5
CCRA provided a general overview of the requirements for the application of s. 86.1 to a spin-off reorganization of a US corporation, including...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Amount | amount of dividend-in-kind (e.g., a spin-off that does not qualify under s. 86.1) is the FMV of the distributed shares | 43 |
Eligible spin-offs
//www.cra-arc.gc.ca/tx/bsnss/tpcs/frgncrp-eng.html">"Information for foreign corporations" 6 March 2012: Respecting the requirement in s....
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|---|---|---|
| Tax Topics - Income Tax Act - Section 86.1 - Subsection 86.1(2) | 118 |
Eligible spin-offs
Includes a simple numerical example. Also describes how a corporate shareholder which files electronically is to provide the required information,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 86.1 - Subsection 86.1(2) | 115 |
Paragraph 86.1(2)(b)
Administrative Policy
21 November 2003 External T.I. 2003-0023925 F - Distribution non-admissible au sens de 86.1
A reorganization with a distribution entailed the shareholders of a Mexican company listed on an exchange (“Mexco”) being issued shares in of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 52 - Subsection 52(2) | distributed shares had ACB equal to the s. 90 inclusion of their FMV | 97 |
30 January 2003 Internal T.I. 2002-0157307 F - Article 86.1 et fractions d'action
As part of a reorganization, Aco distributed to its shareholders one share of Bco for each X shares of Aco held by them (the "Reorganization")....
Paragraph 86.1(2)(f)
Administrative Policy
7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 3, 2020-0848761C6 F - Réorganisations de sociétés étrangères avec dérivation admissibles
After noting that its webpage listing “eligible distributions” previously had only provided one date for each distribution, being the date of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | CRA may consider the delays until its approval of a s. 86.1 spin-off re s. 220(3.5) penalties | 162 |
Subsection 86.1(3)
Administrative Policy
4 February 2002 Internal T.I. 2002-0118937 F - Calcul du paragraphe 86.1(3) de la Loi
The Directorate stated:
If a fraction of a spin-off share is issued for each original share, that fraction must be treated as a share for the...