Subsection 5905(1)
Articles
Penny Woolford, Francis Favre, "The Latest Foreign Affiliate Proposals: Selected Aspects", 2010 Canadian Tax Journal, No. 4, at f.n. 84:
Proposed regulation 5905(1) applies any time there is an acquisition or a disposition of shares of a foreign affiliate and a change in the...
Subsection 5905(5.2)
Articles
Kevin Yip, "Recent Legislation Affecting Partnerships and Foreign Affiliates – Subsection 88(1) and Section 100", Canadian Tax Journal, (2013) 61:1, 229-256, at 237
Proposed regulation 5905(5.2) is conceptually similar to paragraph 111(4)(c), which reduces the ACB of certain capital property of a Canadian...
Geoffrey Turner, "The Acquisition of Control Surplus/ACB Trade-Off in the August 27, 2010 Foreign Affiliate Proposals", CCH International Tax, Nos. 54-55, December, 2010, p. 1.
Subsection 5905(5.4)
Administrative Policy
17 May 2023 IFA Roundtable Q. 8, 2023-0964561C6 - Tax-free Surplus Balance and Paragraph 88(1)(d)
CRA described 2011-0404521C6 in the following terms:
A foreign corporation (Forco) incorporated a Canadian corporation (Holdco) to acquire the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(ii) - Variable C | surplus computation not required in typical bump and run transaction | 175 |
2017 Ruling 2016-0643931R3 - PUC reinstatement on emigration
Initial Target structure
Target, a public corporation incorporated under a Business Corporations Act (the “BCA”), did not carry on business...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 219.1 - Subsection 219.1(4) | post-acquisition sandwich structure exited through using the s. 88(1)(d) bump in combination with a continuance outside Canada | 372 |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(1) | bottom corporation in a vertical amalgamation was specified to be the survivor in order to avoid a disposition under the local tax laws re its subsidiary | 126 |
Articles
Steve Suarez, "Canada's 88(1)(d) Tax Cost Bump: A Guide for Foreign Purchasers", Tax Notes International, December 9, 2013, p. 935
General summary of bump limitation rule (p. 945)
…When control is acquired of a Canadian corporation that owns shares of a foreign affiliate,...
Subsection 5905(7)
Articles
Kevin Yip, "Recent Legislation Affecting Partnerships and Foreign Affiliates – Subsection 88(1) and Section 100", Canadian Tax Journal, (2013) 61:1, 229-256, at 241-242
After noting that where property being bumped is an interest in a partnership holding foreign affiliate shares, proposed Reg. 5908(7) applies...
Subsection 5905(7.1)
Articles
Penny Woolford, Francis Favre, "The Latest Foreign Affiliate Proposals: Selected Aspects", 2010 Canadian Tax Journal, No. 4, at f.n. 32:
Important points to note regarding this application rule are as follows:
- The provision applies only to exempt deficits. Thus, transactions that...
Subsection 5905(7.2)
Administrative Policy
28 May 2015 IFA Roundtable Q. 7, 2015-0581611C6 - IFA 2015 Q7: Foreign affiliates-surplus adjustments
Canco owns 100% of the shares of a foreign affiliate (FA1"), FA1 owns 100% of the shares of a second foreign affiliate ("FA2"), and FA2 owns 100%...
Articles
Eric Lockwood, Maria Lopes, "Subsection 88(3): Deferring Gains on Liquidation and Dissolution", Canadian Tax Journal (2013) 61:1, 209-28, p. 209
They use the facts in various scenarios to illustrate that a taxpayer (Canco) will realize a capital gain on the disposition of its shares of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(3.3) | 453 | |
| Tax Topics - Income Tax Act - Section 93 - Subsection 93(1) | 413 |
Subsection 5905(7.6)
Articles
Geoffrey S. Turner, "New Foreign Affiliate Capital Distribution Elections: QROCs and Reg. 5901(2)(b) Dividends", CCH International Tax, No. 67, 2012, p. 1, at p. 4
Taxpayers may also consider the surplus and basis adjustments under the proposed "fill-the-hole" rules in Regulations 5905(7.1) to (7.7)...