Subsection 69(1) - Inadequate considerations
Paragraph 69(1)(a)
Cases
Survivance v. Canada, 2007 DTC 5096, 2006 FCA 129
Before going on to find that it followed from the deeming in subsection 256(9) of control of a corporation to be acquired as of the beginning of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | no disposition until payment | 94 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(9) | 93 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | deemed acquisition of control implied loss of control | 45 |
Deptuck v. Canada, 2003 DTC 5273, 2003 FCA 177
S.69(1)(a) applied to reduce the capital cost to a partnership of depreciable property purchased by it to the property's fair market value rather...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | common control at time of purchase by GP - LPs came in later | 101 |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(c) | 115 |
Chutka v. Canada, 2001 DTC 5093 (FCA)
A sale of equipment by a corporation to a partnership whose general partner was wholly-owned by the same individual who owned the vendor...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) | 138 | |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(g) | 138 |
Ottawa Valley Power Co. v. MNR, 69 DTC 5166, [1969] CTC 242, 69 DTC 5166 (Ex Ct), aff'd 70 DTC 6223, [1970] CTC 305, [1970] S.C.R. 941
In finding that improvements which Ontario Hydro made free of charge to the plant of the taxpayer in order that the taxpayer could provide 60...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) | 135 |
See Also
The Queen v. Yelle, 2010 DTC 5128 [at 7083], 2010 ABPC 94
The taxpayer, who was a member of a partnership, was accused tax evasion under s. 239(1)(a) in connection with capital cost allowance claims made...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | 151 | |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | time of dealing is relevant time | 124 |
Heron Bay Investments Ltd. v. The Queen, 2009 DTC 1606, 2009 DTC 1288
Hogan, J. indicated that if he accepted the taxpayer's evidence that a loan made by the taxpayer on a non-recourse basis to a related corporation...
Westward Explorations Ltd. v. The Queen, 2006 DTC 2443, 2006 TCC 105
An 11.12% interest in a gold mine that the taxpayer purchased was to be valued, for purposes of s. 69(1)(a) of the Act, on the basis that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | 78 |
CIT Financial Ltd. v. The Queen, 2003 DTC 1138, 2003 TCC 544
The fair market value of custom software that a New Zealand company had developed to run its steel mill was found to have a fair market value...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Other | 88 | |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(2) | 57 |
Pat Marcantonio v. Minister of National Revenue, 91 DTC 917, [1991] 1 CTC 2702 (TCC)
The taxpayer, an optometrist, sold lenses and frames which he, in turn, had purchased essentially at the same price from a related corporation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | 79 |
Administrative Policy
28 July 2014 External T.I. 2014-0532651E5 - Loan to charitable foundation
Canco advances the Loan to a related charitable foundation. The Loan is not issued at a discount and matures in X years. Are there any tax...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 7000 - Subsection 7000(2) - Paragraph 7000(2)(a) | non-interest bearing and non-arm's length term loan could trigger PDO rules | 162 |
S4-F3-C1 - Price Adjustment Clauses
CRA will consider a price adjustment clause to represent pricing at fair market value if:
- the agreement reflects a bona fide intention of the...
8 January 2002 Internal T.I. 2001-009735
Where Mr. A sold shares of Opco to a son and daughter in consideration for promissory notes that were non-interest bearing and repayable in annual...
10 January 1992 CGA Roundtable, Q. 19, 7-912224
Where shares are issued by a corporation on the conversion of debt owed by the corporation to a non-arm's length shareholder, the value of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(7) | 54 | |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) | 70 | |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) | contribution of capital on conversion of debt to lower FMV shares | 198 |
8 November 1990 T.I. (Tax Window, Prelim. No. 2, p. 10, ¶1046)
Ss.69(1)(a) and 80(1) both will be applied where a creditor accepts low fair market value shares in satisfaction of the debt previously owing to it.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) | 27 | |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(5) | 27 |
87 C.R. - Q.68 (p. 47:38)
Where additional shares of an insolvent corporation are acquired by the taxpayer, any cost basis denied by s. 69(1)(a) may be treated as a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) | cost denied by 69(1)(a) treated as contribution of capital | 134 |
81 C.R. - Q.3
When a shareholder advance is paid off with the proceeds of a day-light loan and the proceeds are then used by the shareholder to subscribe for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(28) | 20 |
IT-405 "Inadequate Considerations and Dispositions"
Paragraph 69(1)(b)
Cases
Bouchard v. The Queen, 83 DTC 5193, [1983] CTC 173 (FCTD)
S.69(1)(b)(i) did not apply to a transfer of land by the taxpayer to his son and daughter-in-law where they already had the beneficial ownership...
See Also
DMWSHNZ Ltd. v. Commissioners for Her Majesty's Revenue and Customs, [2015] BTC 32, [2015] EWCA Civ 1036
The taxpayer, which had been issued 10-year floating-rate notes on its sale of shares of a New Zealand subsidiary to a third party, subsequently...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Purpose | purposive approach entails checking whether overall effect of transaction answers the statutory description | 130 |
Shepp v. The Queen, 99 DTC 510 (TCC)
In obiter dicta, Lamarre Proulx TCJ. doubted that s. 69(1)(b) could be applied on the basis that there was a disposition of an "economic interest"...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Shares | 103 |
Gee-Gee Investments Ltd. v. MNR, 94 DTC 1419 (TCC)
The date at which a residence was to be valued for purposes of determining the capital gain realized by the taxpayer with respect to the transfer...
Berry v. Warnett, [1980] T.R. 299 (C.A.), rev'd [1980] BTC 239 (HL)
"[T]he ordinary primary meaning of 'gift' is a voluntary transfer of property made without consideration."
The Queen v. Littler, 78 DTC 6179, [1978] CTC 235 (FCA)
A sale by the taxpayer to his sons of shares for their market price at a time when the taxpayer had insider knowledge that an offer would be made...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Other Legislation - Federal - Federal Court Rules - Rule 408(1) | 103 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 24 |
Administrative Policy
7 October 2016 APFF Roundtable Q. 19, 2016-0655841C6 F - Reimbursement of attributed income
CRA assesses corporation A under s. 56(2) and s. 69(1)(b) on a capital gain of $99,990 on the basis that it had exchanged preferred shares with a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 103 - Subsection 103(1) | no obligation to repay income reallocated to other partner | 170 |
| Tax Topics - Income Tax Act - Section 74.1 - Subsection 74.1(1) | no domestic secondary adjustment doctrine | 218 |
3 March 2015 External T.I. 2014-0519981E5 F - Donation avec charge / Gift with a charge
An individual donates a real estate property with a fair market value of $200,000 that is charged with a hypothec of $100,000. After noting that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | real estate property is one property | 78 |
25 October 2013 External T.I. 2013-0484321E5 F - Donation entre vifs / inter vivos gift
Does s. 69(1)(b)(ii) apply only to individuals? CRA indicated that the interpretation of the term "gift inter vivos" is not a tax issue but a...
6 August 2013 External T.I. 2012-0469481E5 F - Benefit under trust
An estate sold personal-use real estate to one of its beneficiaries for a price less than the property's fair market value, so that s. 69(1)(b)(i)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) | sale to beneficiary at undervalue | 132 |
| Tax Topics - Income Tax Act - Section 52 - Subsection 52(1) | Estate sale to beneficiary at under-value | 133 |
23 April 2013 Internal T.I. 2012-0466081I7 F - Usufruct created under French legislation
A Canadian-resident taxpayer who lived outside Canada made a transfer without consideration (the "Gift") to her adult children of a building and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 43.1 | 232 |
12 August 2010 External T.I. 2010-0370991E5 - Debt forgiveness
Corporation A, an operating company, lent money to Corporation B, its holding company which Corporation B used to purchase a building. ...
20 November 2008 Internal T.I. 2008-0281411I7 - Addition of Beneficiaries
The sole trustee (the Trustee) of a family trust who also was one of the "Existing Beneficiaries" exercised a power under the Trust Indenture to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | addition of unrelated beneficiaries | 298 |
31 May 2012 External T.I. 2011-0426091E5 - 98(5) - ptnsp's leasehold int if ptnr is lessor
A partnership was leasing property from a partner, and then is wound up as described in s. 98(5), with the former partner continuing to use the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) | 89 |
31 December 2004 Internal T.I. 2004-0091781I7
Our position is that where, in a non-arm's-length situation, the fair market value of the shares exceeds the redemption amount, the difference...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) | 94 |
2004 APFF Roundtable Q. 15, 2004-0086821C6
Respecting the situation where a subsidiary purchases for cancellation a portion of the common shares in its capital held by its wholly-owning...
14 September 2004 External T.I. 2004-008220
When asked whether the demolition of a rental property would trigger a disposition at fair market value, the Directorate indicated that the...
2001 Ruling 2001-007094
Although the issue is not referred to, the disposition of property by a corporation pursuant to the exercise of an option by a partnership of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 253.1 | 48 | |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | 81 |
2000 Ruling 2000-002395
A vertical merger between a US corporation with a Canadian branch business ("Absorbco") and its US parent ("Subco 3") under which Absorbco...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(8.1) | 71 |
17 April 2000 T.I. 1999 - 000928
S.69(1)(b) could apply to the granting of a non-exclusive licence of intellectual property to a related person.
14 January 1999 External T.I. 5-982855
Where shares bearing a non-cumulative dividend of 10% are exchanged on an s. 86 reorganization for shares bearing a non-cumulative dividend of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 54 |
6 November 1997 External T.I. 5-972875
An individual shareholder ("A") owns 20 preferred shares of a CCPC ("Opco") having a fair market value of $20 and an unrelated individual ("B"),...
14 November 1996 T.I. 9635535
In a response to several questions concerning the tax consequences to both the employee and the non-arm's length transferee where the transferee...
12 April 1994 T.I. 940231 (C.T.O. "Intellectual Property")
S.69(1)(b) would apply where a parent corporation owns patents, trademarks and copyright used exclusively by one of its subsidiaries in the...
93 C.R. - Q. 39
If a person enters into an agreement of purchase and sale (or an option) with a person with whom he does not deal at arm's length on fair market...
Revenue Canada Round Table TEI Conference, 7 December 1993, Q. 9 (C.T.O. "Non-Arm's-Length Purchase and Sale Arrangement")
Where there is an extended delay between the date a non-arm's agreement is entered into and the closing of the agreement, RC generally would...
7 December 1993 Revenue Canada Round Table TEI Roundtable Q. 10, 5-933368
Where a company acquires from a person with whom it does not deal at arm's length an option to acquire property at a fixed price, s. 69(1)(b)...
26 January 1993 T.I. 923284 (November 1993 Access Letter, p. 512, ¶C245-051; Tax Window, No. 28, p. 1, ¶2383)
S.69(1)(b) does not apply to the provision of services for less than their fair market value.
92 C.R. - Q.21
S.69(1)(b)(i) will apply to a transfer of ownership of equity in a corporation in circumstances such as those in The Queen v. Kieboom, 93 DTC 6382...
17 February 1992 T.I. (Tax Window, No. 16, p. 21, ¶1752)
A conveyance will not be precluded from being considered a gift by the payment by the donee of $1 as a legal formality.
30 November 1991 Round Table (4M0462), Q. 3.3 - Issuing of Shares: Consideration Less than the F.M.V. (C.T.O. September 1994)
Where a corporation that has two unrelated shareholders (Mr. A and Mrs. B) each holding one share, issues a third common share for nominal...
18 December 1989 T.I. (May 1990 Access Letter, ¶1219)
s. 69(1)(b) will apply to a purchase for cancellation of shares held by a non-arm's length shareholder for a purchase price less than fair market...
86 C.R. - Q.23
The existence of a fixed price in a buy-sell agreement is not conclusive that the shareholders were not dealing at arm's length.
85 C.R. - Q.9
"Anything" includes intangible property, such as the right to use property. For example, s. 69(1) will apply where an individual rents farmland to...
Articles
Marie Emmanuelle Vaillancourt, Alan Shragie, "Non-Arm's Length Stock Options Transfers", CCH Tax Topics, No. 1985, 25 March 2010, p. 1.
Innes, "If the Tax Treatment of Accrued Gains on Inventory at Death", Estates and Trust Journal, Vol. 12, 1992, p. 122.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(2) | 0 |
Paragraph 69(1)(c)
Cases
Gervais v. The Queen, 85 DTC 5004, [1984] CTC 661 (FCTD)
A contract of sale cannot be a gift, which is a gratuitous transfer of property. The acquisition by the taxpayer of real property from his father...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Provincial Law | 52 |
Hutterian Brethren Church of Wilson v. The Queen, 79 DTC 5474, [1980] CTC 1, 79 DTC 5479 (FCA)
The donation of services, such as farming labour, by members of a Hutterite religious colony to their corporation did not constitute an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 149.1 - Subsection 149.1(1) - Charitable Organization | 98 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) | 31 |
Administrative Policy
22 March 2016 Internal T.I. 2013-0506561I7 - Property acquired on a return of capital
What is the cost (and amount incurred as an expense) for intellectual property with an unlimited life acquired by a corporation resident in Canada...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(4) | FMV cost of property acquired on QROC distribution | 121 |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | FMV cost of contributed or distributed property | 53 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | QROC distribution by a foreign affiliate to its Canadian shareholder of ECP results in ECE to the shareholder of the property’s FMV | 220 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Element A.1 | no gain to FA transferor of ECP | 99 |
10 October 2014 APFF Roundtable, 2014-0538621C6 F - Disposition en contrepartie de 1$
Does CRA consider, similarly to Revenu Québec, that a transfer of an immovable for $1 to a non-arm's length person can be a gift? After referring...
26 June 2013 External T.I. 2013-0490711E5 F - Disposition en contrepartie de 1$
Could the acquisition of a property for consideration of one dollar qualify as an acquisition by gift for purposes of s. 69(1)(c)? The...
21 December 2012 Internal T.I. 2009-0327221I7 - Paragraph 7(1)(e) - Death of a Taxpayer
After noting that a deceased employee would be deemed under s. 7(1)(e) to dispose of unexercised stock options at fair market value on death, CRA...
Income Tax Technical News No. 44 13 April 2011 [archived]
In the absence of a specific provision in the Act to the contrary...a corporation that receives property from its shareholder for no...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) | inter-provincial loss shifting | 65 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) | exchangeable debenture appreciation not recognized | 90 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(f) | exchangeable debenture appreciation not recognized | 106 |
| Tax Topics - Income Tax Act - Section 49 - Subsection 49(1) | exchangeable debenture exercise | 84 |
| Tax Topics - Treaties - Article 10 | use of s.à r.l. | 123 |
IT-464R, para. 8
"When a tenant makes improvements and alterations to leased property and subsequently abandons them, they are not considered to have been...
22 May 1997 External T.I. 5-964143
Where property is transferred to a trust for purposes of donating an equitable interest in the trust to a charity, the proceeds of disposition...
22 January 1996 T.I. 953006 (C.T.O. "Gift or Sale?")
"Should the properties have been bequeathed or gifted, the ACB to the recipient will, by virtue of paragraph 69(1)(c), be the FMV at the time of...
May 1995 Executive Institute Round Table, Q. 24 (C.T.O. "Employee Stock Option")
Where an estate acquires employee stock options by way of bequest, it is deemed to acquire the property at fair market value. Provided that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Options | 20 |
October 1992 Central Region Rulings Directorate Seminar, Q. B. (May 1993 Access Letter, p. 229)
RC assumes, in the absence of clear evidence to the contrary, that an expropriation in a foreign jurisdiction has occurred in accordance with the...
September 1992 B.C. Revenue Canada Round Table, p. 21 (May 1993 Access Letter, p. 227)
Where personal property is transferred to a trust with the creation of a lifetime income interest payable only to the transferor and a residual...
Articles
Atlas, "Tax Planning for Foreign Inheritances", Tax Topics, No. 1247, 1 February 1996
Discussion of the determination of the cost of property held by a non-resident trust.
Subsection 69(2)
Cases
Indalex Ltd. v. The Queen, 86 DTC 6039, [1986] 1 CTC 219 (FCTD), aff'd 88 DTC 6053, [1988] 1 CTC 60 (FCA)
The taxpayer purchased its supplies of aluminium from a Burmudan affiliate ("Pillar International") which in turn purchased the aluminium from an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 15 | |
| Tax Topics - Income Tax Act - Section 245 - Old | 64 |
Administrative Policy
93 C.R. - Q. 33
Discussion of weaknesses of comparable profit method.
93 C.M.TC - Q. 17
The comparable profit method set out in the regulations to IRC s. 482 is very unlikely to produce a result that is compatible with the arm's...
93 C.M.TC - Q. 13
RC will consider allowing a reasonable mark-up on charges for services (including computer services) provided by non-residents to related Canadian...
89 C.R. - Calderwood Paper (C.42)
The operative words 'reasonable in the circumstances' may mean fair market value or another amount, depending on the facts of a particular...
IC 94-4 "International Transfer Pricing: Advance Pricing Agreements (APA)"
IC 87-2 "International Transfer Pricing and Other International Transactions"
IT-468R "Management or Administration Fees Paid to Non-Residents"
RC is prepared to accept an allocation of the costs, direct and indirect, reasonably attributable to providing the relevant services to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 28 | |
| Tax Topics - Treaties - Article 7 | 37 |
Articles
Purdy, Zanchelli, "Calculating and Supporting Management Fees (A Departure from the 'Back of the Envelope' Approach)", International Tax Planning, 1996 Canadian Tax Journal, Vol. 44, No. 1, 1996, p. 157.
Boidman, Lawlor, "Transfer Pricing in the Absence of Comparable Market Prices: Canada", Studies on International Fiscal Law, Volume LXXIIa, p. 323 (International Fiscal Association, Rotterdam, 1992).
Finance
1996 A.P.F.F. Round Table No. 7M12910: Discussion of position on transactional net margin and comparable margin of profit methods.
Subsection 69(3)
Cases
R. v. Kleysen, 96 DTC 6265 (Man QB)
After noting the submission for the accused that the relevant valuation test for sale of equipment by Canadian taxpayers to a related off-shore...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 239 - Subsection 239(1) - Paragraph 239(1)(a) | 149 |
Administrative Policy
18 March 1992 T.I. (Tax Window, No. 18, p. 4, ¶1816)
Where a Canadian subsidiary guarantees the U.S. bank debt of its U.S. parent, the amount of a reasonable guarantee fee will be included in its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 70 |
91 C.R. - Q.30
Where a Canadian subsidiary guarantees the loan obligations of a foreign parent, s. 69(3) will apply to deem the amount that would have been...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) | 24 |
Articles
Yukich, "Taxation of Export Sales from Canada", 1993 Corporate Management Tax Conference Report, c. 9.
Subsection 69(4) - Shareholder appropriations
Cases
Boardman v. The Queen, 85 DTC 5628, [1986] 1 CTC 103 (FCTD)
The word "appropriated" embraces an action of a third party - here, a court order directing that capital properties of the corporation be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | 67 | |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | 146 |
See Also
Husky Oil Limited v. Canada, 2010 DTC 5089 [at 6887], 2010 FCA 125
Sharlow, J.A. found that the "gift portion" exception to the rollover rule in s. 87(4) did not apply to a transaction in which the taxpayer...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 88 | |
| Tax Topics - Income Tax Act - Section 87 - Subsection 87(4) | 184 | |
| Tax Topics - Statutory Interpretation - Specific v. General Provisions | 190 |
Javalin Founderies & Machine Works Ltd. v. MNR, 67 DTC 392 (TAB)
In finding that a transaction under which the individual non-resident shareholder of a Canadian corporation took possession of all its assets...
Administrative Policy
22 March 2016 Internal T.I. 2013-0506561I7 - Property acquired on a return of capital
What is the cost (and amount incurred as an expense) for intellectual property with an unlimited life acquired by a corporation resident in Canada...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(c) | FMV cost of property acquired on contribution of capital | 121 |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | FMV cost of contributed or distributed property | 53 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Eligible Capital Expenditure | QROC distribution by a foreign affiliate to its Canadian shareholder of ECP results in ECE to the shareholder of the property’s FMV | 220 |
| Tax Topics - Income Tax Act - Section 14 - Subsection 14(5) - Cumulative Eligible Capital - Element A.1 | no gain to FA transferor of ECP | 99 |
15 November 2013 Internal T.I. 2013-0478621I7 F - Transfer of intangibles - TP adjustments
Pursuant to a sales agreement between Canco, its immediate non-resident parent (Parent) and the ultimate U.S. parent of Canco (Publico), as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) | group sale with Canco not charging for intangibles | 148 |
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) | secondary adjustment re group sale with Canco not charging for intangibles | 294 |
Subsection 69(5) - Idem [Shareholder appropriations]
Administrative Policy
14 May 2015 CLHIA Roundtable, 2015-0573841C6 - 2015 CLHIA Roundtable Winding-up and ACB
At the 2005 CALU Roundtable (2005-0116631C6), the CRA indicated that s. 69(5) would likely take precedence over s. 148(7) on the wind-up of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 148 - Subsection 148(7) | s. 69(5) generally prevails over s. 148(7) | 112 |
Subsection 69(11) - Deemed proceeds of disposition
See Also
Oxford Properties Group Inc. v. The Queen, 2016 TCC 204
When Oxford Properties was sold to an a Canadian pension fund (OMERS) subsidiary, the purchaser first negotiated that Oxford would drop various...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | no abuse in using 88(1)(d) bump to avoid s. 100 after 3-year s. 69(11) period | 557 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | subsequent sale part of series as it utilized the benefit of previous LP packaging transactions | 383 |
| Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) | purpose not to tax underlying recapture on subsequent LP unit sale | 431 |
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) | purpose: to push down ACB of shares of sub to qualifying non-depreciable property | 489 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | subsequent amendment shed light on scope of previous version | 107 |
| Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) | S. 100 operates only on outside basis gain | 290 |
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) | purpose: to preserve high outside basis through push down | 293 |
Administrative Policy
2 December 2014 CTF Roundtable, Q2(c)
Must corporations be affiliated or related or both in a loss consolidation arrangement? CRA responded:
The CRA will consider ruling requests where...
2014 Ruling 2014-0523221R3 - Amalgamation of mutual funds
underline;">: Proposed transactions. C1, which is a smaller mutual fund corporation than C2, will amalgamate with C2 to form Amalco. C1, C2 and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5.5) | amalgamation of two mutual fund corporations each with capital losses | 134 |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(b) | amalgamation of two mutual fund corporations each with capital losses | 132 |
21 October 2013 Internal T.I. 2013-0505831I7 - Rollover and subsequent disposition of property
The taxpayer, a Canadian corporation, transferred all its voting and participating shares of Subco, a non-resident subsidiary wholly-owned...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 85.1 - Subsection 85.1(3) | s. 69(11)(b) not applied | 259 |
2002 Ruling 2001-011607
Where prior to the acquisition of Target, Target transfers assets on a rollover basis to a wholly-owned subsidiary of Target ("Xco"), and then...
1996 Tax Executives Round Table, Q. XIL (No. 9639150)
Where a taxpayer contributes property with an accrued gain to a loss corporation on a rollover basis and then, prior to the expiration of the...
18 August 1995 TI 9515455
Where a corporation ("Newco") incorporated by an individual (B) acquires all the shares of Oldco from another individual (A) with whom B deals at...
93 CPTJ - Q.14
In one recent case, RC concluded that a series of transactions which technically avoided the application of s. 69(11) because the subsequent...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 43 |
91 CPTJ - Q.1
Whether the vendor has knowledge and control of the series of transactions may be considered when determining whether s. 69(11) applies.
89 C.R. - Read Paper (C.18)
S.69(11) may apply upon a butterfly of property to a minority corporate shareholder as part of a series of transactions that includes a later sale...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(7) | 12 |
Articles
David M. Williamson, Michael H. Manly, "Subsection 69(11) - Unexpected Problems from Inappropriate Positions", Corporate Structures and Groups, Vol. V, No. 4, 1999, p. 285.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) | 0 |
Marc N. Ton-That, "Unexpected Problems under Subsection 69(11)", Corporate Structures and Groups, Vol. V, No. 3, 1999, p. 268.
Subsection 69(13) - Amalgamation or merger
Administrative Policy
5 March 1992 External T.I. 5-913271
In the case of an amalgamation described in s. 87(1), the cost amount of inventory of a predecessor for purposes of s. 69(13) would be its value...
Subsection 69(14) - New taxpayer
Administrative Policy
20 February 2003 External T.I. 2002-015667
"The 'taxpayer' referred to in subsection 69(14) will include both the taxpayer that is the transferor in subsection 69(11), as well as each...