Subsection 40(1) - General rules
Cases
Abrametz v. Canada, 2009 DTC 5828, 2009 FCA 111
The taxpayer would have established that he realized a capital loss if he had established the following:
- a fellow shareholder ("Paulhus") of the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(12) | 89 |
Administrative Policy
Calculating and reporting your capital gains and losses
Use the exchange rate that was in effect on the day of the transaction or, if there were transactions at various times throughout the year, you...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) | 33 |
Paragraph 40(1)(a)
Subparagraph 40(1)(a)(i)
Cases
Martin v. The Queen, 2015 CAF 204
The taxpayer's employment at his brokerage employer was terminated. He was unable to find replacement employment or to establish his own financial...
Hope R. Gaynor v. Her Majesty The Queen, 91 DTC 5288, [1991] 1 CTC 470 (FCA)
In rejecting a submission that the capital gain realized by the taxpayer from the purchase and sale in U.S. dollars of U.S. securities should be...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Amount | 62 |
The Queen v. Demers, 86 DTC 6411, [1986] 2 CTC 321 (FCA)
Although the price stipulated in the agreement for the sale of shares of a corporation ("Chibougamau") was $7,800,000, the agreement also provided...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition | 128 |
See Also
Rio Tinto Alcan Inc. v. The Queen, 2016 TCC 172
The taxpayer ("Alcan"), a Canadian public company, incurred fees on capital account respecting its butterfly spin-off of a subsidiary holding a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | investment dealer fees incurred respecting the advisability of making hostile takeover were fully deductible under s. 9 | 417 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) | investment dealer fees re advisability of making hostile takeover were fully deductible | 529 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(cc) | legal fees incurred in securing regulatory approval for a hostile bid related to the bidder's business of earning income from shares and interaffiliate sales | 182 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(g) | takeover bid circular costs did not qualify | 102 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | fees incurred in order to acquire shares were excluded/butterfly expenses excluded as taxpayer was not in the business of implementing corporate reorganizations | 365 |
| Tax Topics - Income Tax Act - Section 169 - Subsection 169(2.1) | raising general question of deductibility of fees and listing s. 20(1)(e) did not satisfy s. 165(1.11) | 246 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) | failure to advance evidence showing allocation of fees to share consideration | 139 |
| Tax Topics - Statutory Interpretation - French and English Version | finding common meaning of 2 versions of s. 20(1)(bb) | 108 |
Brosamler Estate v. The Queen, 2012 DTC 1193 [at 3493], 2012 TCC 204 (Informal Procedure)
he estate of a deceased German resident sold three rental properties in BC. The estate added probate and legal fees that were paid in...
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| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | probate fees added to cost | 154 |
Dubois c. La Reine, 2007 DTC 1534, 2007 TCC 461 (Informal Procedure)
The taxpayer had to pay an amount in settlement of the damages claim of the vendor and incurred related legal expenses as a result of a...
Avis Immobilièn G.M.B.H. v. The Queen, 94 DTC 1039 (TCC)
The taxpayer, which was a corporation resident in West Germany, borrowed deutschemarks ("DM") from a German bank to help finance the acquisition...
Capcount Trading v. Evans, [1993] BTC 3 (C.A.)
A capital loss of a British company from the disposal of shares of a Canadian company was to be determined by computing the difference between the...
Campbellton Enterprises Ltd. v. MNR, 90 DTC 1869 (TCC)
A bonus equal to three months' interest which the taxpayer paid in order to discharge a mortgage upon the sale of a rental property was deductible...
Samson Estate v. MNR, 90 DTC 1150 (TCC)
Professional fees incurred in seeking the cancellation of a zoning by-law were found to have been incurred in order to more easily dispose of the...
Bentley v. Pike, [1981] T.R. 17 (HCJ.)
Mrs. Bentley was considered under the Finance Act 1965 to have acquired, on her father's death in 1967, a 1/6 share of real property situate in...
Administrative Policy
15 October 2015 Internal T.I. 2014-0527041I7 F - Disposition de biens
In the course of a discussion not based on a repetition of the applicable facts, CRA stated:
...Avis Immobilien GMBH ... [found that] "for the...
10 June 2013 STEP Round Table Q. 10, 2013 0480411C6 (Brosamler decision)
CRA considers Brosamler Estate to be confined to "a very specific fact situation," noting that the legal and probate fees in issue would have been...
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| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 75 |
11 January 2013 External T.I. 2012-0436771E5 - Sale of a business
The sole shareholder of Aco is required under the terms of the share sale agreement to repay, in full, at closing, a bank loan owing by Aco and an...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(9.1) | penalty paid by shareholder | 85 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) | continued deduction where debt settlement by shareholder rather than taxpayer | 24 |
29 July 2004 Internal T.I. 2003-002376
After concluding that the payment, on the termination of an equity swap, by the taxpayer of the swap termination payment gave rise to a capital...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss | 146 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 65 |
9 June 2003 Internal T.I. 2003-001330
Legal fees incurred, following the disposition by the taxpayers of a property, in a dispute as to the amount of the final payment due to the...
21 October 1993 T.I. 9325325 [loan penalty on sale]
Where penalty payments are made in order to pay off a mortgage, or reduce the interest rate on a mortgage, prior to the sale of the mortgaged...
26 January 1993 Memorandum (Tax Window, No. 28, p. 15, ¶2399)
Legal fees incurred by a taxpayer in a year subsequent to the sale of a capital property in order to collect the proceeds of disposition will not...
91 CR - Q.29
Where a landlord makes an inducement payment outside the ordinary course of its business to facilitate the sale of a building by increasing the...
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| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Timing | 12 |
18 November 1991 Memorandum (Tax Window, No. 11, p. 19, ¶1537)
S.40(1)(a)(i) may reduce the taxpayer's capital gain on the sale of shares where under the agreement the taxpayer is required to use a portion of...
89 C.M.TC - "Leasing Costs"
"payments made in contemplation of the sale of the property, i.e., to bring the property to full occupancy to enhance the sellling price ... are...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Contract or Option Cancellation | 40 |
Subparagraph 40(1)(a)(iii)
Cases
Pineo v. The Queen, 86 DTC 6322, [1986] 2 CTC 71, 86 DTC 6322 (FCTD)
The reserve was not available in respect of a demand promissory note received by the vendors as partial consideration for the sale of shares of a...
The Queen v. Derbecker, 84 DTC 6549, [1984] CTC 606 (FCA)
In S.40(1)(a)(iii)(A), "the words 'due to him' look only to the taxpayer's entitlement to enforce payment and not to whether or not he has...
Neder v. The Queen, 82 DTC 6022, [1981] CTC 501 (FCA)
Where a taxpayer has been reassessed so as to include in his income a taxable capital gain, a S.40(1)(a)(iii) reserve is not available to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Land | 64 |
See Also
Alguire v. The Queen, 95 DTC 532 (TCC)
In 1981, the taxpayer sold the shares of a corporation owned by him to his mother for $600,000 under an oral agreement that she would pay him when...
Administrative Policy
24 February 2014 External T.I. 2013-0505391E5 F - Clause de earnout renversé
CRA confirmed its position in 2000-0051115 that:
Where the cost recovery method is not used and the sale price of a property is not certain at the...
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| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) | no capital gains reserve on reverse earn-out for a share sale | 219 |
7 October 2013 Internal T.I. 2013-0504081I7 F - Interaction between 55(2) and 40(1)(a)(iii)
Vendor, following a sale to Buyer of various blocks of shares, received a deemed dividend from Buyer (as a result of a sale [i.e., purchase for...
16 November 2001 External T.I. 1999-0009295
Decision summary 55-066 dated 29 November 29 1985 addressed whether a shareholder could claim a reserve under s. 40(1)(a)(iii) when its shares...
17 November 1999 T.I. 990126
"[W]here and individual transfers property to a partnership under subsection 97(2) of the Act and receives, in addition to a partnership interest...
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| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | 112 |
31 March 1995 External T.I. 5-943011
A reserve may not be claimed where an individual transfers property to a partnership pursuant to s. 97(1) and receives as consideration a...
93 C.R. - Q. 41
Re whether changes to the terms of a take back note or mortgage result in loss of the reserve.
10 October 1991 T.I. (Tax Window, No. 11, p. 14, ¶1515)
Where the original due date on a vendor take-back mortgage or promissory note is extended by agreement, the entitlement of the vendor to continue...
21 August 1991 T.I. (Tax Window, No. 8, p. 6, ¶1403)
The entitlement of a vendor to claim a reserve where a promissory note was accepted only as evidence of the purchaser's obligation for the unpaid...
14 February 1991 T.I. (Tax Window, Prelim. No. 3, p. 12, ¶1119)
A vendor take-back mortgage, whose scheduled payments of principal are substantially deferred due to the financial difficulty of the purchaser,...
IT-236R2 "Reserves - Dispositions of Capital Property"
IT-436R "Reserves - Where Promissory Notes are Included in Disposal Proceeds"
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|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | 43 |
Articles
Smith, "Corporate Restructuring Issues: Public Corporations", 1990 Corporate Management Tax Conference Report, pp. 6:6-6:8: discussion of claiming of reserve by vendor under a take-over bid.
Paragraph 40(1)(b)
Administrative Policy
18 August 2014 External T.I. 2014-0540361E5 F - CDA and the deeming rules of 40(3.6) or 112(3)
A corporation's capital dividend accounts will not be reduced by a loss on the redemption of shares held by it where such loss is deemed to be nil...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account | ss. 112(3) and 40(3.6) stop-loss rules modify operation of s. 40(1)(b) | 128 |
Subsection 40(2) - Limitations
Paragraph 40(2)(b)
Cases
Cassidy v. Canada, 2011 FCA 271
The taxpayer sold his six-acre rural property after it was rezoned for residential use as a result of an application made on behalf of owners of...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (e) | 251 |
The Queen v. Joyner, 88 DTC 6459, [1988] 2 CTC 280, 88 DTC 6459 (FCTD)
In 1972, 14 acres of land which the taxpayer had acquired in 1965 was prohibited, by virtue of an Order in Council passed pursuant to the...
The Queen v. Yates, 83 DTC 5158, [1983] CTC 105 (FCTD), aff'd 86 DTC 6296 [1986] 2 CTC 46 (FCA)
It was held that the gain from the disposition of a portion of a principal residence was completely exempt since "it was not argued that, by its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | 58 |
See Also
Francoeur v.. Agence du revenu du Québec, 2016 QCCQ 11906
Aubé, J found that an entrepreneur who had followed a pattern of building and selling residences, realized a capital gain eligible for the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | somewhat quick flip by a builder was eligible for the principal residence exemption | 325 |
Cassidy v. The Queen, 2010 DTC 1336 [at 4287], 2010 TCC 471
The taxpayer sold his six-acre rural property after it was rezoned for residential use as a result of an application made on behalf of owners of...
Administrative Policy
7 October 2016 APFF Roundtable Q. 2, 2016-0652841C6 F - Changement partiel d’usage - immeuble locatif et résidentiel
S1-F3-C2 “Principal Residence” para. 2.7 states that a housing unit includes a unit in a duplex. However, in 2011-0417471E5, CRA indicated...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) | switch between which triplex units used for personal/family rental or 3rd-party rental did not trigger change of use | 249 |
| Tax Topics - Income Tax Act - Section 54 - Principal Residence | triplex contained separate housing units | 151 |
7 October 2016 APFF Roundtable Q. 3, 2016-0652851C6 F - Annulation d'une promesse d'achat sur une maison
As a result of breach to sell a personal residence, an individual receives $50,000 in damages from the defaulted purchaser. Is the $50,000...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) | no capital loss for damages paid for breach of purchase obligation | 73 |
10 June 2016 External T.I. 2015-0590371E5 F - Résidence principale - stationnement
Where a parking space was acquired as part of the purchase of a residential condo unit, the parking space can thereafter form part of the condo...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (e) | a parking space can form part of a condo housing unit | 241 |
11 April 1995 T.I. 950740 (C.T.O. "40(2)(b)")
A non-resident who disposes of his principal residence can reduce the amount of the resulting capital gain by virtue of the fact that the...
16 February 1995 Mississauga Breakfast Seminar, Q. 4
Discussion of interaction between capital gains election under s. 110.6(19) and claiming of principal residence exemption for some (but not all)...
88 C.R. - Q.55
The taxpayer is not required to review his use and enjoyment of the property on a year by year basis respecting the half-hectare test.
80 C.R. - Q.24
Where a taxpayer purchased a vacant lot and later constructed his principal residence on it, the denominator will include the years that he owned...
Paragraph 40(2)(e)
See Also
Plant National Ltd. v. MNR, 89 DTC 401 (TCC)
As a consequence of the disposition by the taxpayer of voting preference shares of a corporation ("Enterprises") to Enterprises, Enterprises...
Administrative Policy
12 May 1992 Memorandum 921006 (May 1993 Access Letter, p. 194, ¶C38-156)
Because there is only a deemed disposition under s. 50(1)(a) and not an actual disposition, s. 40(2)(e) does not apply to a loss arising under s....
25 March 1991 T.I. (Tax Window, No. 1, p. 7, ¶1170)
The word "person" in s. 40(2)(e) includes "persons". Accordingly, if X Co. is controlled by Mr. X and Mrs. X together, s. 40(2)(e) will apply to a...
10 January 1990 T.I. (June 1990 Access Letter, ¶1257)
s. 40(2)(e) generally will not apply to the winding-up or liquidation of a foreign affiliate provided that under the relevant foreign corporate...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(9) | 58 |
86 C.R. - Q.22
The phrase "was controlled" means controlled at the time of the disposition.
Paragraph 40(2)(e.1)
Administrative Policy
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...
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|---|---|---|
| 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)(g) - Subparagraph 40(2)(g)(ii) | s. 40(2)(e.1) trumped s. 40(2)(g)(ii) so that US Loan ACB preserved | 122 |
| Tax Topics - Income Tax Act - Section 80.01 - Subsection 80.01(3) | S. 40(2)(e.1) trumped s. 40(2)(g)(ii) so that US Loan ACB preserved | 207 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80.01 - Subsection 80.01(4) | ATR-66 debt tuck-under and wind-up transactions | 354 |
Articles
Mike J. Hegedus, "Paragraph 40(2)(e.1) Versus Subparagraph 40(2)(g)(ii): Potential Conflict?", Resource Sector Taxation (Federated Press), Vol. IX, No. 4, 2014, p.684.
2013-0479701R3 may not have dealt with conflict between s. 40(2))(g)(ii) and s. 40(2)(e.1) (pp. 686-7)
In the third and most recent ruling, the...
Paragraph 40(2)(f)
Administrative Policy
S3-F9-C1 - Lottery Winnings, Miscellaneous Receipts, and Income (and Losses) from Crime
Lottery Schemes
1.17 Paragraph 40(2)(f) specifies that no taxable capital gain or allowable capital loss results from the disposition of a chance...
Paragraph 40(2)(g)
Subparagraph 40(2)(g)(ii)
Cases
Service v. Canada, 2005 DTC 5281, 2005 FCA 163
The taxpayer, who was a minority shareholder of a corporation ("Homage") engaged in a condominium development project, lent money directly to...
Rich v. Canada, 2003 DTC 5115, 2003 FCA 38
In finding that the taxpayer was entitled to recognize a business investment loss on an interest-bearing loan made by him to a company ("DSM")...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) | 159 | |
| Tax Topics - Statutory Interpretation - Business Judgment | 68 | |
| Tax Topics - General Concepts - Purpose/Intention | subordinate purpose sufficient | 45 |
Byram v. Canada, 99 DTC 5117 (FCA)
The taxpayer was able to deduct losses sustained on interest-free loans made by him to a U.S. operating company of which he was initially a direct...
Cadillac Fairview Corp. Ltd. v. Canada, 99 DTC 5121 (FCA)
he taxpayer was unable to recognize a capital loss in respect of its guarantees of bank loans made to real estate partnerships in which fifth-tier...
Bosa Bros. Construction Ltd. v. The Queen, 96 DTC 6193 (FCTD)
Interest-free advances that the taxpayer made to its U.S. subsidiary were found not to have been made to earn income (e.g., acquiring a product or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 130 | |
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property | 107 | |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(ii) | interest-free advances to US sub by developer | 33 |
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | 200 |
Brown v. The Queen, 96 DTC 6091 (FCTD)
The taxpayer made interest-free loans to a real estate corporation owned by him and others that were used to fund the corporation's obligations to...
Smith v. The Queen, 93 DTC 5351 (FCA)
No deduction was available under s. 50(1)(a) in respect of a loan made by a corporation to an affiliate in the absence of any evidence that the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 169 |
The Queen v. Lalonde, 84 DTC 6159 (FCTD), aff'd 89 DTC 5286 (FCA)
Two doctors made interest-free advances to a non-profit corporation which had been established to construct and operate an old-age home. Since...
See Also
Coveley v. The Queen, 2014 DTC 1041 [at 2771], 2013 TCC 417, aff'd 2014 FCA 281
The taxpayers ("Michael and Solbyung"), were a married couple employed by a technology research corporation ("cStar"), and Solbyung was also a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) | bad debt claim, but business as usual | 120 |
Audet v. The Queen, 2012 DTC 1208 [at 3556], 2012 TCC 162 (Informal Procedure)
The taxpayer, a certified general accountant, guaranteed a loan to one of his clients ("Cuisine Gourmet"), for which he became liable to pay...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees | fee to recover capital proceeds | 152 |
MacCallum v. The Queen, 2011 DTC 1225 [at 1308], 2011 TCC 316
A corporation owned by the taxpayer and his wife wholly owned a trucking corporation ("D & N"), and his son wholly owned a small business...
Scott v. The Queen, 2010 TCC 401, 2010 DTC 1273 [at 3910]
The taxpayer made a loan to a corporation owned by his son and daughter-in-law, whose business failed. Boyle J. allowed the loss because, while...
Alessandro v. The Queen, 2007 DTC 1373, 2007 TCC 411
The taxpayer had satisfied the burden of showing that loans advanced by her to a corporation of which she was only an indirect shareholder but for...
Daniels v. The Queen, 2007 DTC 883, 2007 TCC 179
The taxpayer and his brother used money borrowed by them from the Royal Bank of Canada to purchase debentures from a Canadian-controlled private...
Kyriazakos v. The Queen, 2007 DTC 373, 2007 TCC 66
Non-interest bearing advances that the taxpayer had made to a corporation after she had sold its shares to a friend were found not to have been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) | no attempt to collect was reasonable | 132 |
Toews v. The Queen, 2005 DTC 1359, 2005 TCC 597
The recognition of a loss realized by the taxpayer on a non-interest bearing loan made by him to a company owned by a family trust was denied...
Proulx-Drouin v. The Queen, 2005 DTC 487, 2005 TCC 116
When the taxpayer paid under her guarantee of debts owing by her husband's corporation, she became a creditor of the corporation by subrogation....
Bernier v. The Queen, 2004 DTC 3235, 2004 TCC 376
The taxpayer was entitled to recognize under s. 39(2) capital losses incurred in a Bahamian margin account when U.S.-dollar margin loans were...
Joncas v. The Queen, 2004 DTC 2315, 2005 TCC 647 (Informal Procedure)
Interest-bearing advances made by the taxpayer to a cooperative corporation of which he was a member were found to have been made for the primary...
MacKay v. The Queen, 2003 DTC 748 (TCC)
After a corporation of which the taxpayer was a significant shareholder entered into a period of financial difficulty, the taxpayer followed the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) | 115 |
Gordon v. The Queen, 96 DTC 1554 (TCC)
The taxpayer caused two related corporations ("Grandview" and "Formete") to advance funds on behalf of a corporation ("Engineering") owned by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(12) | 79 |
Burns v. The Queen, 94 DTC 1370 (TCC)
Five siblings, including the taxpayer, loaned money on a non-interest bearing basis to a corporation ("WFC") as part of transactions that resulted...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) | 109 |
National Developments Ltd. v. The Queen, 94 DTC 1061 (TCC)
The taxpayer, which was a significant shareholder of a Minnesota corporation ("K-Tel") agreed along with another major shareholder ("Tri-State")...
W.F. Botkin Construction Ltd. v. The Queen, 93 DTC 448 (TCC)
The purchase price for the sale of the taxpayer's business to a corporation owned by the children of the taxpayer's shareholder was financed by...
Glass v. MNR, 92 DTC 1759 (TCC)
Pursuant to a written agreement with the existing shareholders, the taxpayer purchased 25% of the shares of a land development corporation for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | 95 | |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 102 |
Madaline v. MNR, 91 DTC 1451 (TCC)
A loss on a guarantee given by the taxpayer of a loan to his son's business was not made for the purpose of gaining or producing income but,...
O'Blenes v. MNR, 90 DTC 1068 (TCC)
At the time that the taxpayer guaranteed amounts owing by a corporation of which her husband was the shareholder and officer, "she was not...
Business Art Inc. v. MNR, 86 DTC 1842 (TCC)
Interest-free loans which the taxpayer made to a U.K. subsidiary, which had been established to purchase supplies in the U.K. for resale to the...
Administrative Policy
S4-F8-C1 - Business Investment Losses
1.46 ... Where a shareholder provides a guarantee or loan to a corporation in order to provide it capital, a clear connection will generally exist...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation | "substantially" and "principally" | 38 |
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) | End of year references taxpayer | 343 |
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1.1) | 247 | |
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(a) | Proactive collection efforts | 157 |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(9) | Example | 182 |
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(6) | Limitation on BIL carryback | 96 |
16 June 2016 Internal T.I. 2015-0597971I7 F - Perte réputée nulle - loss deemed nil
Mrs. A, F1 and F2 held, as co-owners, a building whose sole tenant was Corporation, which was owned by Mrs. A. F1 and F2 advanced sums (the...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) | BIL potentially could be recognized on a non-interest bearing loan made to a corporation in which the taxpayer had no equity | 0 |
2014 Ruling 2013-0479701R3 - Transfer of US dollar loan
Holdco2, which is wholly-owned by a Canadian resident individual, made a non-interest-bearing demand U.S-dollar loans (the "US Loan") to the ...
| 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 80.01 - Subsection 80.01(3) | S. 40(2)(e.1) trumped s. 40(2)(g)(ii) so that US Loan ACB preserved | 207 |
6 May 2014 Internal T.I. 2014-0524651I7 - Loss on conversion
Canco indirectly controlled ULC which was the sole member (holding common membership units) of LLC. ULC also held non-interest-bearing Notes...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) | s. 51 applies where issuer had a cash redemption override | 208 |
| Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) | conversion not under Note terms | 185 |
6 December 2012 External T.I. 2012-0463431E5 F - Application of subparagraph 40(2)(g)(ii)
Creditor and Debtor were wholly-owned subsidiaries of the same parent. Creditor made an interest-free loan to Debtor, and subsequently sustained...
2012 Ruling 2010-0386201R3 - Tower structure capitalized by interest-free loans
Existing structure
Canco, which is a privately-owned taxable Canadian corporation, holds a US limited liability limited partnership ("LLLP")...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(i) | non-interest-bearing loans is made for income producing purposes: generating dividends | 890 |
14 January 2004 External T.I. 2003-003875
CRA has accepted the decision in Byram so that, in its view, when the debtor is a wholly-owned subsidiary of the taxpayer, a clear nexus between...
17 December 1996 Memorandum 963454
A loss realized by an employee from the disposition of notes received by him from his employer in lieu of a cash bonus would not be subject to the...
Halifax Round Table, February 1994, Q. 1
A loss realized by a shareholder of a small business corporation on the sale of a non-interest bearing loan to an arm's length party may be...
23 December 1993 T.I. 931790 (C.T.O. "Allowable Business Investment Loss")
Discussion of when a shareholder can recognize a capital loss on a non-interest bearing loan owing to her by the corporation where the shareholder...
91 C.R. - Q.35
Where a holding company is required to have an interest-free debt owing to it by Opco settled for an amount less than its ACB as a condition to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) | 26 |
21 August 1991 T.I. (Tax Window, No. 8, p. 22, ¶1397)
A director's loss under s. 227.1 will be non-deductible by virtue of s. 40(2)(g).
12 September 1990 T.I. (Tax Window, Prelim. No. 1, p. 10, ¶1016)
Where A transferred a non-interest-bearing debt at a loss to its affiliate, B, and B then sold the debt in an arm's length transaction, the loss...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f.1) | 50 |
15 September 89 Memorandum (February 1990 Access Letter, ¶1105)
The position in IT-445 respecting interest-free loans is still supportable. The Business Art case, in which a Canadian corporation was allowed to...
1 September 89 T.I. (February 1990 Access Letter, ¶1106)
Where a wife guaranteed for no consideration a bank loan to her husband's corporation in which she was not a shareholder, she was unable to claim...
22 Aug. 89 T.I. (Jan. 90 Access Letter, ¶1078)
In light of the Canada Safeway and DWS cases, RC does not accept that when a shareholder incurs a debt to his corporation he does so to indirectly...
81 C.R. - Q.4
Guidelines in the case of a guarantee granted a lender by a sole shareholder of the borrower for no compensation.
IT-239R2 "Deductibility of Capital Losses from Guaranteeing Loans for Inadequate Consideration and from Loaning Funds at less than a Reasonable Rate of Interest in Non-arm's Length Circumstances"
6. Where a taxpayer has loaned money at less than a reasonable rate of interest to a Canadian corporation of which he is a shareholder, or to its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | 46 |
IT-390 "Unit Trusts - Cost of Rights and Adjustments to Cost Base"
A capital loss arising when additional units are issued in settlement of a unit holder's right to receive a distribution of a capital gain of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 52 - Subsection 52(6) | 0 |
Articles
Reid, "Capital and Non-Capital Losses", 1990 Conference Report, c. 16
Discussion of deductibility of losses arising from amounts paid under guarantees.
Subparagraph 40(2)(g)(iii)
Administrative Policy
7 October 2016 APFF Financial Strategies and Financial Instruments Roundtable Q. 2, 2016-0651711C6 F - RRIF, Transfer of designated benefit
At civil law, land and building are a single property (although this rule is overridden for CCA/recapture purposes). Consequently, if a duplex...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Personal-Use Property | land underlying duplex used 40% personally is not personal-use property | 228 |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Regulation 1102(2) | Reg. 1102(2) deems building to be separate from land and does not bifurcate the land | 171 |
| Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6.11) | computation of eligible amount following year of death | 297 |
Subsection 40(3) - Deemed gain where amounts to be deducted from adjusted cost base exceed cost plus amounts to be added to adjusted cost base
Administrative Policy
30 October 2014 External T.I. 2013-0488881E5 - Upstream Loan
Where Canco receives a s. 90(9)(a) notional dividend as a result of a loan from a 2nd tier FA (FA2), it will not be credited for s. 90(9)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | no double inclusion following FA creditor wind-up | 60 |
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(6) | no double inclusion following FA creditor wind-up or for 2nd loan in series | 121 |
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(9) | notional election and double taxation issues | 1332 |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(1.1) | notional Reg. 5901(1.1) election | 30 |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(a) | 90-day rule unavailable | 28 |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b) | notional Reg. 5901(2)(b) election | 31 |
| Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Underlying Foreign Tax | notional UFT disproportionate election | 37 |
8 October 2010 Roundtable, 2010-0373461C6 F - Retrait d'une société de personnes
Where a partner whose units have a negative ACB has his units redeemed equally over the course of five years, 20% of the negative ACB will be...
Rulings Directorate Discussion and Position Paper on Motion Picture Films and Video Tapes as Tax Shelters, Version 29/3/93 930501 (C.T.O. "Motion Picture Films - C.C.A.")
Discussion in Appendix of techniques for postponement of realization of negative ACB by investors in film limited partnership. RC also states that...
Articles
Melanie Huynh, Eric Lockwood, "Foreign Affiliates and Adjusted Cost Base", 2007 Canadian Tax Journal, Issue No. 1
Subsection 40(3.1) - Deemed gain for certain partners
Administrative Policy
27 June 2016 External T.I. 2016-0637341E5 F - Partnerships - Negative ACB
Rather than making current distributions of its cash flow to a limited partner, those sums are lent by the LP to the limited partner – then at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) | loan advances to a limited partner may give rise to immediate s. 53(2)(c)(v) grind | 261 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.13) | retention of partnership profits not a contribution | 150 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) | assumption of loan can be contribution, but not retained profits | 177 |
18 June 2014 External T.I. 2011-0417491E5 - Non-resident's partnership interest
A non-resident corporation (NRco) is deemed under s. 40(3.1)(a) to realize a gain in respect of its limited partnership interest in P, which is...
Subsection 40(3.13)
Administrative Policy
27 June 2016 External T.I. 2016-0637341E5 F - Partnerships - Negative ACB
Rather than making current distributions of its cash flow to a limited partner, those sums are lent by the LP to the limited partner – then at...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(c) - Subparagraph 53(2)(c)(v) | loan advances to a limited partner may give rise to immediate s. 53(2)(c)(v) grind | 261 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.1) | loans by LP to partner potentially gave rise to negative ACB gain | 168 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) | assumption of loan can be contribution, but not retained profits | 177 |
Subsection 40(3.3) - When subsection (3.4) applies
Administrative Policy
3 February 2016 Internal T.I. 2015-0588791I7 - Meaning of substituted property
LLC1, which is wholly owned by a Canadian partnership, held 49.9% of the units in LLC3 - with a further 0.1% held by LLC2 (a wholly-owned...
6 January 2009 Internal T.I. 2008-0280111I7 - FX loss on disposition of cash
A Bermuda CFA (Forco) maintains U.S. dollar deposits and realizes FX losses when it uses such cash to pay a dividend or to make a loan. CRA...
2007 Ruling 2007-0245281R3
This contemplated the winding-up of an income fund (the "Fund") following its acquisition by a "Bidco" in which the Fund sold its assets (mostly...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) | no ACB reduction for capital gains distribution by unit trust to bidco | 86 |
21 March 2007 External T.I. 2004-0091061E5
After indicating that s. 13(21.2) would not apply to a transfer of depreciable property from a personal trust to a person affiliated with the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21.2) | 49 |
Articles
Marc Ton-That, Rick McLean, "Navigating the Stop-Loss Rules", Corporate Structures and Groups, Vol. VI, No. 3, p. 324.
Subsection 40(3.4) - Loss on certain properties
Administrative Policy
27 October 2014 Internal T.I. 2014-0534981I7 F - Subsection 40(3.4)
Canco 1 ("C1") disposed of its interest in a partnership ("P") in its 2008 taxation year to a corporation ("C2") which was affiliated under s....
2 July 2014 External T.I. 2014-0529731E5 F - Stop-loss Rules
In Scenario 1, Portco acquires 1,000 common shares of Publico on January 1, 201X and acquires a further 200 shares on December 15, 201X. Portco...
28 November 2010 CTF Annual Roundtable Q. 8, 2010-0386311C6 - Subsection 40(3.4)
does the deemed existence of a partnership in the postamble to s. 40(3.4) apply for other purposes of the Act, e.g., subdivision j? CRA...
6 October 2011 External T.I. 2011-0399611E5 - Subsections 40(3.3) and 40(3.4)
After referring to 2001-008815, which indicated that a taxpayer was permitted to recognize 99% of its capital loss when it acquired 100 shares of...
2010 Conference Report CRA Round Table, Q. 8 [not carried forward to Income Tax Technical News, No. 44]
The postamble in s. 40(3.4) was added to ensure that a previously suspended loss of a partnership could be reported "at the later time set out...
18 March 2003 External T.I. 2003-0002915 F
Since the beginning of 2002, Holdco held 1,000 shares of a public company with an ACB of $10,000. On December 16, 2002, it sold 200 shares to an...
4 July 2001 External T.I. 2001-008815
Respecting the situation where the taxpayer purchases 100 common shares of XYZ Co on January 1, 2001 and sells 99 shares on January 25, 2001...
Subsection 40(3.5) - Deemed identical property
See Also
10737 Newfoundland Limited v. The Queen, 2011 DTC 1255 [at 1460], 2011 TCC 346
The taxpayer held shares of a Canadian corporation which, under their terms and a related agreement, were exchangeable on a one-for-one basis into...
Cascades Inc. v. The Queen, 2008 DTC 2387, 2007 TCC 730
The taxpayer transferred all its shares of a public company ("PII") of which it was the controlling shareholder to a wholly-owned subsidiary of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Redundancy/reading in words | 48 |
Administrative Policy
14 March 2003 Internal T.I. 2003-018297
Where a public corporation ("Parentco") holding shares of a public corporation ("Subco") with an accrued loss, sells the shares to a...
Articles
Carrie Smit, "Exchangeable Shares: Not Just Rights to Foreign Shares", CCH International Tax, No. 59, August 2011, p. 1
In discussing the 10737 Newfoundland case, notes that "the recognition of an exchangeable share as the particular property disposed of (as opposed...
Paragraph 40(3.5)(c)
Cases
Canada v. Cascades Inc., 2009 DTC 6122, 2009 FCA 135
The trial judge had found that the stop-loss rule in s. 40(3.4) did not apply to the disposition by the taxpayer of shares of a subsidiary ("PII")...
Subsection 40(3.6) - Loss on shares
Administrative Policy
12 January 2015 Internal T.I. 2014-0560421I7 - FX losses on CFA wind-up
In 2014-0538591I7, the Directorate indicated that s. 40(3.6) did not apply to deny a loss realized on the winding-up of a controlled foreign...
10 October 2014 APFF Roundtable, 2014-0538241C6 F - 75(2) and definition of "earned income" in 146(1)
X, who is the sole beneficiary of a protective trust, holds voting shares of a corporation giving him control thereof, with the trust holding...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 146 - Subsection 146(1) - Earned Income | character preservation of s. 75(2) attributed income | 118 |
| Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) | character preservation of attributed income/basis adjustment for denied capital loss at trust level | 335 |
15 August 2014 Internal T.I. 2014-0538591I7 - FX losses on CFA wind-up
A Canadian-resident corporation did not elect under s. 88(3.1) for the winding-up of its wholly-owned controlled foreign affiliate (CFA) to be a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 93 - Subsection 93(2.01) | no reduction under s. 93(2.01)(a) if no exempt dividend | 132 |
23 April 2012 Internal T.I. 2012-0436921I7 - Capital Losses
The Canadian parent's shares of a US subsidiary were redeemed, and it claimed a capital loss under s. 39(2). CRA found that s. 40(3.6) and s....
16 January 2003 External T.I. 2002-015102
Where an estate of the deceased acquires a controlling bloc of shares of a corporation that was controlled by the deceased and the shares are then...
30 March 2001 External T.I. 2000-007414
Where the shares of a corporation are owned equally by four trusts having the same corporate trustee, s. 40(3.6) will apply to deny a capital loss...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | 70 |
13 October 2000 Internal T.I. 2000-003110
"Subsection 40(3.6) will not generally apply where all the shares of a corporation held by an estate are disposed of to the corporation which,...
Articles
Steve Suarez, Pooja Samtani, "Using Exchangeable Shares in Inbound Canadian Transactions", 2007, 48:13, Tax Notes Int'l 1281 (The authors describe an "exchangeable share" as "a share of a Canadian corporation... that, together with some ancillary rights, replicates as closely as possible the economics (and to some extent the legal rights engaged by holders) of a share of another corporation.")
Kevin Wark, "Corporate-Owned Insurance: Revisiting Share Redemption Arrangements", CALU Report, August 2004.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) | 0 |
Subsection 40(3.12) - Deemed loss for certain partners
Administrative Policy
3 July 2012 External T.I. 2012-0449701E5 - Subsection 40(3.12) and tiered ptnshps
As s. 40(3.12) is limited to corporations, individuals (other than trusts) and testamentary trusts:
[a]n election under subsection...
Subsection 40(3.15) - Excluded interest
Administrative Policy
24 June 2014 External T.I. 2014-0524331E5 - definition of excluded interest
The Canadian "Partnership," which had operated its residential apartment building since 1988 without any expansion to or changes in its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.16) | distribution not a qualifying use | 127 |
22 May 1998 T.I. 980657
Where a partnership owns shares that are held for the purpose of earning income but out of which dividends are not declared in each year of their...
Subsection 40(3.16) - Amounts considered not to be substantial
Administrative Policy
24 June 2014 External T.I. 2014-0524331E5 - definition of excluded interest
The Canadian "Partnership," which had operated its residential apartment building since 1988 without any expansion to or changes in its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.15) | 40% indebtedness increase to below original amount was "substantial" | 86 |
Subsection 40(3.61) - Exception — estate loss carried back
Administrative Policy
11 October 2013 APFF Roundtable, 2013-0493651C6 F - Affiliated persons and de facto control
All the voting common shares of Opco (carrying on an active business) are held by a discretionary inter vivos trust which was settled by the uncle...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) | 260 |
Subsection 40(4) - Disposal of principal residence to spouse or trust for spouse
Administrative Policy
1 September 1995 T.I. 950769 (C.T.O. "Principal Residence Provisions")
Where a transfer of a home has occurred as described in s. 70(6), the surviving spouse will not automatically lose her entitlement to designate...
14 July 1994 T.I. 940502 (C.T.O. "Gain on Property Transferred from Spouse")
Re application of ss.40(4) and (6) where a husband and wife jointly owned a cottage on December 31, 1971, husband in 1973 transferred his interest...
23 June 1992 T.I. 920894 (December 1992 Access Letter, p. 13, ¶C38-248)
Discussion of the availability of the principal residence exemption in various situations where a married couple own a house and a cottage...
7 March 1992 T.I. (Tax Window, No. 17, p. 7, ¶1786)
Re application of s. 40(4) and (6) where two properties each of which meet the definition of principal residence are owned in joint tenancy by...
Subsection 40(7) - Property in satisfaction of interest in trust
Administrative Policy
89 C.R. - Q.25
The principle residence exemption is not available to a non-spouse trust on the disposition of a residential unit, regardless whether or not any...
Subsection 40(10)
Administrative Policy
7 October 2016 APFF Roundtable Q. 17, 2016-0652781C6 F - Functional currency and acquisition of control
CRA noted that where a taxpayer with an elected functional currency (e.g., the USD) has an accrued FX loss on a debt obligation owing in another...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e) | FX gains or losses on pre-transition debts not affected | 229 |
| Tax Topics - Income Tax Act - Section 261 - Subsection 261(9) - Paragraph 261(9)(a) | exclusion of pre-transition debts from s. 111(4) | 98 |
Subsection 40(12) - Donated flow-through shares
Administrative Policy
16 October 2012 External T.I. 2012-0437911E5 - Donation of flow-through shares
The taxpayer had acquired units in two flow-through share partnerships. Approximately two years after the offerings, the LPs would transfer their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 38.1 | 148 |
14 May 2012 Internal T.I. 2011-042631E5
CRA was asked to consider transactions in which a limited partnership holding flow-through shares transferred those shares to a mutual fund...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 38.1 | 112 |