Subsection 404(1)
Administrative Policy
30 March 2012 Internal T.I. 2012-0439931I7 - Section 404 of ITR Meaning of "loans"
In response to an inquiry as to whether an arrangement is a loan only if there is a lender-borrower relationship between the bank and the debtor (no particulars given), the Directorate stated:
[A]n amount is a loan, for the purposes of Section 404 of the ITRs, only if, there is a lender-borrower relationship between the bank and the debtor....The courts have consistently found that in order for an amount to be a "loan" there has to be a lender and borrower relationship between the taxpayers. This definition is broad enough to include most banking arrangements for the purposes of Section 404.."
5 June 2001 Internal T.I. 2000-0053047 - REVERSE REPURCHASE TRANSACTION
Cash transferred by a bank to a customer in exchange for shares under the terms of the standard-form repo agreement would not constitute a loan for purposes of Regulation 404(1)(b).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 260 - Subsection 260(1) - Securities Lending Arrangement | 146 |