Section 55: What is the New Reality?
|
|
- Harry Perry
- 6 years ago
- Views:
Transcription
1 Section 55: What is the New Reality?, KPMG LLP, KPMG LLP 67 th Annual Tax Conference 67e Conférence fiscale annuelle 2015 Agenda Evolution of subsection 55(2) 2015 Federal Budget The new purpose tests and examples Safe income Part IV exception Paragraph 55(3)(a) Stock dividends 2
2 Evolution of 55(2) Until the 2015 Budget Before 1972: No taxation on capital gains 1972 : Introduction of taxable capital gains 1980 : Introduction of the subsection 55(2) anti-avoidance provision and its exceptions : Prevention of the Purchase Butterfly ; introduction of safe-income determination time Imprecise concepts influencing the application of subsection 55(2): The purpose test Series of transactions Safe income 3 55(2) Until the 2015 Budget Was there a dividend deductible under 112(1), (2) or 138(6)? Was purpose of dividend to reduce a capital gain; or Was result of 84(3) deemed dividend to reduce a capital gain? Was the gain attributable to anything other than safe income? Was dividend subject to Part IV tax that was not refunded on payment of dividend to a corporation? 4
3 55(2) Until the 2015 Budget Subsection 55(2) did not apply if, as part of the series, there were no events described in paragraph 55(3)(a) Paragraph 55(3)(a) applied to all dividends: Cash dividend Dividend-in-kind Stock dividend Deemed dividends under subsections 84(1), (2), (3) 5 55(2) Until the 2015 Budget Purpose test: One of the purposes is the reduction of capital gain An objective or subjective test? Purpose of the recipient or the payer of the dividend? What if dividend created or increased a loss on a share? 6
4 55(2) Until the 2015 Budget Series of transactions: Depends on the specific facts Difficulties in assessing the application of paragraphs 55(3)(a) and (b) 7 55(2) Until the 2015 Budget Safe income vs. safe income on hand: CRA s approach regarding the attributable to anything other than income earned or realized by any corporation Case law 8
5 2015 Federal Budget 55(2) applies where a dividend reduces a capital gain Same tax policy concern arises where dividends cause the FMV of a share to fall below its cost or where dividends increase cost of recipient s property because capital gains could be sheltered Budget provides as an example the Tax Court case of D&D Livestock Finance Explanatory Notes broadly similar to comments in budget 9 The New Purpose Tests One of the purposes of the payment or receipt of the dividend is to effect: a significant reduction in the capital gain on any share Results test for 84(3) a significant reduction in the fair market value of any share Certain 84(2), (3) dividends excluded a significant increase in the cost amounts of property of the dividend recipient Certain 84(2), (3) dividends excluded 10
6 D&D Livestock (Simplified) Before After Stock Dividend 0 ACB = 0 Safe income = 1 FMV = 9 ACB = 0 Preferred PUC = 1 Stock dividend ; Paid-up capital = 1; under 52(3)(a) Under existing rules, ACB in stock dividend shares up to safe income 11 D&D Livestock (Simplified) transfers Pref to Newco FMV = 9 ACB = 0 Newco Preferred Newco transfers Pref to as Dividend-in-Kind FMV = 9 ACB = 0 Preferred FMV = 0 Newco 12
7 D&D Livestock (Simplified) transfers shares to Newco FMV = 9 ACB = 0 Newco 0 ACB = 2 Preferred can sell shares of Newco Gain of 8 instead of 9 13 D&D Livestock (Simplified) FMV = 9 ACB = 0 Newco Preferred Old 55(2) Did not apply to dividend-in-kind No gain on Newco shares therefore no gain reduced by dividend 112(3) After dividend-in-kind, transfer all of shares to Newco and sell Newco 112(3) does not apply because Newco value above ACB 14
8 FMV = 9 ACB = 0 D&D Livestock (Simplified) Newco Preferred Proposed 55(2.1) Was purpose to reduce gain on Newco shares? Was purpose to reduce FMV of Newco shares? Was purpose to increase total cost amounts to? Total cost amounts of property before: $1 Total cost amounts of property after: $2 15 New Purpose Test Steps: 1. Subco pays a cash dividend of $1 to 2. transfers Gain Property to Subco under 85(1) for Subco shares 3. sells Subco shares to Buyer Buyer 1 Cash Dividend 3 Subco X Cash of $1 ACB = 0 X 2 Gain Property 16
9 Overview of New Rules Three conditions must be met for 55(2) to apply 55(2.1) three conditions The dividend is deductible under 112(1), (2) or 138(6) One of the three purpose tests or the results test is met The dividend exceeds the SI contributing to the capital gain that would have been realized 17 Overview of New Rules 55(3)(a) exception Applicable only to deemed dividends received under 84(2) and (3) on the redemption, acquisition or cancellation of shares 18
10 Overview of New Rules Exception for Part IV taxes narrowed Exception no longer applies if any dividend refund received New rules for stock dividends The new regime applies to dividends received after April 20 st, Cash Dividends How do the new rules impact cash movements within corporate groups? Consider FMV, ACB, SI Preferred Topco Dividends Debt How significant is any reduction in gain or FMV? Dividends Sub 1 Sub 2 20
11 Lend Cash? Pubco acquired LRIP is $200 has cash of $200 which is needed by Pubco If lends to Pubco due to concern over new 55(2), must consider LRIP antiavoidance rules FMV 1,000 ACB 1,000 SI 0 Pubco LRIP Purpose of Payment or Receipt Applicable to each recipient? If it is purpose of and Aco, does that mean Bco and Cco are caught? Dividends to Aco, Bco and Cco Aco Bco Cco Dividend to 75% 20% 5% 22
12 Cash Dividends Asset Protection 1. pays cash dividend to Does 55(2) apply? Was dividend paid out of safe income on hand? What is the purpose of the dividend? Cash Dividend 1 23 Cash Dividends Asset Protection 1. pays cash dividend to 2. lends cash to Does 55(2) apply? Was dividend paid out of safe income on hand? What is the purpose of the dividend? Cash Dividend 1 2 Loan 24
13 Cash Dividends Asset Protection 1. pays cash dividend to 2. uses cash to purchase shares of Targetco Does 55(2) apply? Cash Dividend 1 Purchase Shares 2 Targetco Was dividend paid out of safe income on hand? What is the purpose of the dividend? 25 Loss Utilization Transactions IB Loan Profitco Lossco CS Pref CS NIB Loan Newco Newco will pay cash dividends on Preferred shares Is the sole purpose of the dividends loss consolidation? What if there are minority shareholders? 26
14 55(2.1)(c) Safe Income Exception Dividend is not subject to 55(2) if the dividend does not exceed safe income that can reasonably be considered to contribute to a capital gain on the share on which the dividend is received 55(2) can apply where there is no gain on the share Safe income only available if share has gain 27 55(2.1)(c) Safe Income Exception In the past, had acquired shares of Subco for $1,000 Subco has after-tax earnings of $10 post-acquisition FMV of Subco has decreased to $800 (+$10 cash) If a cash dividend of $10 is paid, the safe income exception does not apply Subco FMV 810 ACB 1,000 Cash from earnings = 10 28
15 Safe Income Discretionary Shares Discretionary Shares: Non-voting, no participation in liquidation proceeds, entitled to discretionary dividends A B pays all of its excess cash annually as dividends on the Discretionary Shares Old 55(2) If dividends on Discretionary Shares reduce gain on common shares, dividends might be protected by safe income if less than safe income attributable to common shares New 55(2) Safe income exception refers to earnings contributing to a gain on the share on which the dividend is paid Aco Discretionary Share CS CS Bco Discretionary Share 29 Safe Income Freeze Shares Shares (FMV 1,000; SI = 700) held by X were exchanged for New Shares and Freeze Shares X Freeze Shares transferred to Earnings since freeze have increased value of CS Dividends paid on non-cumulative Freeze Shares 55(2.1)(b) refers to reduction of gain / FMV of any share 55(2.1)(c) refers to earnings contributing to a gain on the share on which the dividend is received New CS Freeze F 1000 A 0 P 0 SI
16 55(2.1)(c) Safe Income Exception In the past, had acquired shares of Subco for $150 Subco has after-tax earnings of $21 represented by cash FMV of Subco s assets has decreased to $130 Would the safe income exception available be $1 or $21? FMV Assets 130 Subco FMV 151 ACB 150 After-tax Cash Safe-Income Determination Time The earlier of: the time that is immediately after an event in paragraph 55(3)(a) the time that is immediately before the earliest time that a dividend is paid as part of the transaction, event or series Definition has not been amended Is a revision needed under the new rules? 32
17 Part IV Exception Subco redeems Preferred shares held by 1 Subco receives dividend refund Individual subject to Part IV tax pays dividend to Individual and receives dividend refund Preferred Subco Part IV exception no longer applies RDTOH 33 Paragraph 55(3)(a) The 55(3)(a) exception will only apply to 84(2) and (3) deemed dividends on share redemptions, acquisitions or cancellations by the corporation 55(2) can apply to other dividends even if there are no transactions with unrelated persons 34
18 Paragraph 55(3)(a) Explanatory Notes The amended exception in paragraph 55(3)(a) for related-person dividends is intended to facilitate bona fide corporate reorganizations by related persons. It is not intended to be used to accommodate the payment or receipt of dividends or transactions or events that seek to increase, manipulate, manufacture or stream cost base. 35 Paragraph 55(3)(a) to distribute $200 to Cash dividend Not protected by 55(3)(a) Preserves ACB Subject to purpose tests Share cancellation 84(3) dividend protected by 55(3)(a) If redeem 20% of shares, reduce 20% of basis Finance explanatory notes FMV 1,000 ACB
19 Internal Reorganization Parentco transfers Property B to Subsidiary for Prefs which are redeemed for Note The Note can be cancelled in different ways: transfers the Note to Parentco by dividend and Parentco converts the Note into shares of Subsidiary Property A Note PS Property B Subsidiary Property B redeems some shares held by Parentco and pays the redemption price with the Note. Parentco converts the Note into shares of the Subsidiary Parentco transfers shares of to the Subsidiary (FMV equal to Property B) and redeems these shares and pays the redemption amount with the Note How do the new rules impact the choice? 37 Stock Dividends Under the definition of amount in 248(1) The amount of a dividend for tax purposes is generally equal to the increase in paid-up capital Certain exceptions apply 38
20 Stock Dividends 55(2.2) For the purpose of 55(2), the amount of the dividend is greater of Amount of paid-up capital increase FMV of stock dividend shares issued Subjects high-low stock dividends received by corporations to the rules in 55(2) 39 Stock Dividends Is purpose of stock dividend to reduce gain or FMV? Can have deemed gain of $70 ACB for safe income + deemed gain Starting Point 00 ACB = 0 PUC = 0 SI = 30 High-low stock dividend FMV = 0 ACB = 0 PUC = 0 Stock Dividend Preferred PUC = 30 40
21 Stock Dividends Public company stock split Is purpose of stock dividend to reduce FMV of existing common shares? Privateco Pubco Stock Dividend of Shares 41 Thank You, KPMG LLP, KPMG LLP 42
FEDERAL BUDGET 2015: PROPOSED AMENDMENTS TO SECTION 55. Christopher J. Montes Felesky Flynn LLP June 16, 2015
FEDERAL BUDGET 2015: PROPOSED AMENDMENTS TO SECTION 55 Christopher J. Montes Felesky Flynn LLP June 16, 2015 TOPICS Subsection 55(2) Paragraph 55(3)(a) exception Stock dividends Cost/ACB rules for stock
More informationSubsection 55(2) is an anti-avoidance rule intended to prevent the inappropriate reduction of a capital gain by way of the payment of a deductible
1 2 Subsection 55(2) is an anti-avoidance rule intended to prevent the inappropriate reduction of a capital gain by way of the payment of a deductible intercorporate dividend. This provision generally
More information55(2) >Overview > Purpose > prevents capital gains stripping
SUBSECTION 55(2) SAFE INCOME ISSUES Blake, Cassels & Graydon LLP 55(2) >Overview > Purpose > prevents capital gains stripping 2 55(2) A sale gives rise to capital gain and tax Corp A 3 55(2) A Corp B Share
More informationTax Alert Canada. Proposed changes to section 55. Background. Current section 55
2015 Issue No. 35 8 June 2015 Tax Alert Canada Proposed changes to section 55 EY Tax Alerts cover significant tax news, developments and changes in legislation that affect Canadian businesses. They act
More informationDemystifying 55(2) and Butterfly Reorganizations. Mark Brender Osler, Hoskin & Harcourt LLP
Demystifying 55(2) and Butterfly Reorganizations Osler, Hoskin & Harcourt LLP Demystifying 55(2) & Butterfly Reorganizations Objectives: Review the basics of 55(2) Review the basics of 55(3)(a) and 55(3)(b)
More informationWhen is a Loss a Loss and When Can You Claim a Loss
When is a Loss a Loss and When Can You Claim a Loss, Felesky Flynn LLP PricewaterhouseCoopers LLP Sean W. Hiebert, PricewaterhouseCoopers LLP Calgary, AB Introduction Losses: what s the big deal? Complexity
More informationRecent Developments in Corporate Taxation. Greg Bell, KPMG Chris Jerome, EY 7 June Ottawa
Recent Developments in Corporate Taxation Greg Bell, KPMG Chris Jerome, EY 7 June 2017 - Ottawa 2017 Agenda Budget overview Business income tax measures Personal income tax measures 2016 CTF Annual Conference
More informationRecent Developments in Corporate Taxation Post-Mortem Tax Planning A Case Study
Recent Developments in Corporate Taxation Post-Mortem Tax Planning A Case Study 2017 Pamela Cross, Borden Ladner Gervais, LLP David Mason, Deloitte June 7, 2017, OTTAWA Agenda - Post Mortem Planning 1.
More informationDealing with Private Company Shares at Death Post-Mortem and Insurance Planning
Dealing with Private Company Shares at Death Post-Mortem and Insurance Planning Introduction This Tax Topic deals with post-mortem tax planning for an individual who owns private company shares. The overall
More informationManaging the Sales of Canadian Businesses A Vendor s Perspective
, Borden Ladner Gervais LLP, Toronto, CPA, CA, TEP, Cadesky Tax, Toronto 67 th Annual Tax Conference 67e Conférence fiscale annuelle 2015 Our Current Tax and Business Environment Low corporate tax rates
More informationTaxable Canadian Corporation
Section 85 rollover Typical Scenarios Sole proprietorship converting to Corp Transferring assets with built in gain to a Corp (eg. Publicly traded stocks, intangible assets) Less Commonly seen: Transferring
More informationPublished by The Honourable William Francis Morneau, P.C., M.P. Minister of Finance
Explanatory Notes Relating to the Income Tax Act, Excise Tax Act, Excise Act, 2001, Universal Child Care Benefit Act, Children s Special Allowances Act and Related Legislation Published by The Honourable
More informationThe Paragraph 88(1)(d) Bump: Planning, Pitfalls and Developments. 19 th Taxation of Corporate Reorganization Conference, January 20, 2015
The Paragraph 88(1)(d) Bump: Planning, Pitfalls and Developments 19 th Taxation of Corporate Reorganization Conference, January 20, 2015 Steve Suarez Partner Borden Ladner Gervais LLP Issues Covered Bump
More informationThe Joint Committee on Taxation of The Canadian Bar Association and The Canadian Institute of Chartered Accountants
The Joint Committee on Taxation of The Canadian Bar Association and The Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants 277 Wellington St. W., Toronto Ontario,
More informationExplanatory Notes to Legislative Proposals Relating to the Income Tax Act and Regulations
Explanatory Notes to Legislative Proposals Relating to the Income Tax Act and Regulations Published by The Honourable James M. Flaherty, P.C., M.P. Minister of Finance December 2012 Preface These explanatory
More informationUtilization of Tax Losses And Debt Restructuring. January 13, 2009 James A. Hutchinson
Utilization of Tax Losses And Debt Restructuring January 13, 2009 James A. Hutchinson Triggering Accrued Losses -- The Stop-loss Rules Triggering Accrued Losses - The Stop-loss Rules (Cont d) The Old Rules
More informationLifetime Capital Gains Exemption and Converting Income Into Capital Gains
and Converting Income Into Capital Gains Presented by: Josh Harnett September 14, 2017 Table of Contents 1. Lifetime Capital Gains Exemption a) Current Rules b) Perceived Evils c) New Measures i. Age Limits
More informationNON-ARM S LENGTH TRANSFERS OF PROPERTY
TABLE OF CONTENTS Dedication... Preface... Table of Cases... Table of Statutory References... iii v xiii xxxiii 1 INTRODUCTION... 1 1.1 General... 1 1.2 Arrangements... 2 2 NON-ARM S LENGTH TRANSFERS OF
More informationJohn G. Ormiston, CPA, CA, TEP Deloitte LLP
John G. Ormiston, CPA, CA, TEP Deloitte LLP 2 Acknowledgement The author would like to thank various members of the Lower Mainland Tax Community who readily volunteered several Horror Stories for consideration
More informationCorporate Tax Planning With Insurance (Dealing with Double Tax on Private Company Shares at Death)
Corporate Tax Planning With Insurance (Dealing with Double Tax on Private Company Shares at Death) Richard Facia, Director Of Advanced Marketing A partner you can trust. 1 Post Mortem Estate Planning The
More informationSUBSECTION 55(2) THE ROAD AHEAD
SUBSECTION 55(2) THE ROAD AHEAD Kenneth Keung, CA, CPA (CO, USA), TEP, CFP, MTax, LLB Moodys Gartner Tax Law LLP Calgary 2016 Prairie Provinces Tax Conference Planning in a High-Rate Environment Subsection
More informationCONTENTS VOLUME II VOLUME I. Detailed contents of Volume II, Chapters 11 to 21 follows. The textbook is published in two Volumes:
xi CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter VOLUME I Chapter VOLUME II 1 Introduction To Federal Taxation In Canada 11 Taxable
More informationDIVIDEND REGIME FAIZAL VALLI, CA 1
POST-MORTEM AND SHAREHOLDER AGREEMENT CONSIDERATIONS IN LIGHT OF THE ELIGIBLE Introduction DIVIDEND REGIME FAIZAL VALLI, CA 1 The purpose of this paper is to demonstrate the complexities of allocating
More informationESTATE PLANNING WITH REAL ESTATE
ESTATE PLANNING WITH REAL ESTATE Jason Hale, CA Greg Leslie, CA TOPICS Deemed Dispositions on Death Residential Property Capital Gain Recreational Property Capital Gain Investment Property Capital Gain/Recapture
More informationRestrictive Covenants
Restrictive Covenants Fondation canadienne de fiscalité 2015 Philippe Dunlavey, Ernst & Young Erica Lawee, Ernst & Young Agenda Introduction Overview of the relevant provisions of the Income Tax Act (the
More informationTAX EXECUTIVES INSTITUTE, INC. PENDING CANADIAN INCOME TAX ISSUES. Submitted to THE DEPARTMENT OF FINANCE NOVEMBER 18, 2015
TAX EXECUTIVES INSTITUTE, INC. on PENDING CANADIAN INCOME TAX ISSUES Submitted to THE DEPARTMENT OF FINANCE NOVEMBER 18, 2015 Tax Executives Institute welcomes the opportunity to present the following
More informationThe Capital Dividend Account. January 2017 Jean Turcotte, B.B.A., LL.B., D.Fisc, Fin.Pl., TEP Director, Tax, Wealth and Insurance Planning Group
The Capital Dividend Account January 2017 Jean Turcotte, B.B.A., LL.B., D.Fisc, Fin.Pl., TEP Director, Tax, Wealth and Insurance Planning Group Capital Dividend Account Why the Capital Dividend Account
More informationCanada Releases Foreign Affiliate Dumping Amendments
Volume 71, Number 10 September 2, 2013 Canada Releases Foreign Affiliate Dumping Amendments by Steve Suarez Reprinted from Tax Notes Int l, September 2, 2013, p. 864 Reprinted from Tax Notes Int l, September
More informationCalgary Young Practitioners Group
November 20, 2013 Introduction Partnerships have been a very popular choice for carrying on business in Canada, particularly in the oil and gas industry Over the last few years, there has been a legislative
More informationTechnical News. Income Tax. No. 44 April 14, Valuation of Special Voting Shares
Income Tax Technical News No. 44 April 14, 2011 This version is only available electronically. In This Issue Valuation of Special Voting Shares Key Employee Tax-Free Savings Account Corporate-Held Life
More informationBill C-33 Proposed Amendments to Paragraphs 52(3)(a) and 53(1)(b)
The Joint Committee on Taxation of The Canadian Bar Association and The Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants 277 Wellington St. W., Toronto Ontario,
More informationConsultation on Private Company Taxation. KPMG Submission to Canada s Department of Finance
Consultation on Private Company Taxation KPMG Submission to Canada s Department of Finance KPMG LLP October 2, 2017 Table of Contents 1 Executive Summary 2 2 Introduction 4 3 Income Sprinkling Using Private
More informationDanny Crawford, CMA KPMG LLP
Danny Crawford, CMA KPMG LLP Edmonton Young Practitioners Group Agenda Overview of Indirect Tax Focus on Reorganizations Share Transactions ITC s on takeover costs, costs as a holdco, costs to raise capital
More informationPersonal Tax Planning
Personal Tax Planning Co-Editors: T.R. Burpee* and P.E. Schusheim** ESTATE FREEZES INVOLVING TRUSTS Charles P. Marquette*** Trusts have a multitude of purposes and, in estate planning, can be used in conjunction
More informationFor 2016 and subsequent taxation years, various post mortem tax planning strategies will only be available to a Graduated Rate Estate ( GRE ).
1 2 For 2016 and subsequent taxation years, various post mortem tax planning strategies will only be available to a Graduated Rate Estate ( GRE ). Therefore it is essential that planning is undertaken
More informationPurchase and Sale of a Business Share Sales. Douglas A. Cannon
Purchase and Sale of a Business Share Sales Douglas A. Cannon Planning the Transaction Individuals are generally subject to a combined Ontario/federal tax rate of 26.57% on eligible dividends and at a
More informationThe Joint Committee on Taxation of The Canadian Bar Association and Chartered Professional Accountants of Canada
The Joint Committee on Taxation of The Canadian Bar Association and Chartered Professional Accountants of Canada Chartered Professional Accountants of Canada, 277 Wellington St. W., Toronto Ontario, M5V3H2
More informationIndex. A Inventory valuation, 199. Landscaping, 209
Index A Inventory valuation, 199 Academic prize income, 134 Investigation of site, 210 Accounting net income vs. tax Landscaping, 209 net income, 41-2, 198-210 Lease cancellation cost, 209 Accounting depreciation
More informationSweeping Proposed Tax Changes to Private Corporations
Sweeping Proposed Tax Changes to Private Corporations Speakers: Kay Leung, Business & Tax Law Wesley Isaacs, Business & Tax Law Marc Weisman, Business & Tax Law Moderator: Ari Tenenbaum, Business Law August
More informationUS Citizens as Shareholders of Canadian Companies Impact on Reorganizations and Other Canadian Tax Consequences
68 th Annual Tax Conference (2016) Calgary, AB INTERNATIONAL TAXATION Disclaimer: This material is for educational purposes only and is not intended to be advice on any particular matter. No one should
More informationCONTENTS CHAPTER 1. CHAPTER 1, continued CHAPTER 2. Introduction To Federal Taxation In Canada. Income Or Loss From An Office Or Employment.
xvii CONTENTS CHAPTER 1 Introduction To Federal Taxation In Canada The Canadian Tax System.......... 1 Alternative Tax Bases.......... 1 Taxable Entities In Canada........ 2 Federal Taxation And The Provinces....
More informationTax Planning Using Private Corporations
Tax Planning Using Private Corporations Submission by Grant Thornton LLP October 2, 2017 Contents Summary Letter... 3 Part I: Income Sprinkling... 6 Part II: Converting a Private Corporation s Regular
More informationTax Considerations in Shareholders Agreements. Evelyn R. Schusheim Cummings Cooper Schusheim Berliner LLP
Tax Considerations in Shareholders Agreements Evelyn R. Schusheim Cummings Cooper Schusheim Berliner LLP Tax Considerations in Shareholders Agreements Survivorship Arrangements Structuring the Buy-Sell
More information10/23/17 THE POTENTIAL IMPACT OF THE JULY 18, 2017 PROPOSED TAX CHANGES. Prepared for: 2017 CPA FORUM NORTH
THE POTENTIAL IMPACT OF THE JULY 18, 2017 PROPOSED TAX CHANGES Prepared for: 2017 CPA FORUM NORTH Jasper October 23, 2017 K. John Fuller, CPA, CA Jason Pisesky Page 2 Page 3 1 OVERVIEW OF PROPOSED AMENDMENTS
More informationDeath & Taxes When Life s Two Certainties Collide. Shaun M. Doody
Death & Taxes When Life s Two Certainties Collide Shaun M. Doody 1 2 INTRODUCTION Death and taxes are two certainties that have been with us just about from the beginning of civilization No other tax event
More informationTHE PURPOSE OF SUBSECTION 55(2)
THE PURPOSE OF SUBSECTION 55(2) Eoin Brady, CPA, CA PricewaterhouseCoopers LLP Toronto Gwendolyn Watson PwC Law LLP Toronto 2015 Ontario Tax Conference The Purpose of Subsection 55(2) Eoin Brady, PricewaterhouseCoopers
More informationCONTENTS VOLUME II VOLUME I. The detailed contents of both Volume I and II follow. The textbook is published in two Volumes:
CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter I Chapter II 1 Introduction To Federal Taxation In Canada 11 Taxable Income and Tax
More informationCourse-Level Assessment Project: Computation of Taxes Payable and Providing Tax Planning Advice to a Corporate Client
Course Description This course builds on concepts learned in introductory financial accounting and microeconomics and in the study of the fundamentals of the Canadian Income Tax System with respect to
More informationCONTENTS VOLUME II VOLUME I. The detailed contents of both Volume I and II follow. The textbook is published in two Volumes:
CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter I Chapter II 1 To Federal Taxation In Canada 11 Taxable Income and Tax Payable For Individuals
More informationThe Eligible Dividend Rules Not So New Anymore
The Eligible Dividend Rules Not So New Anymore Small Practitioners Forum Banff, AB Kim G C Moody CA,TEP Moodys LLP Tax Advisors November 23, 2007 Brief History November 23, 2005 Department of Finance News
More informationGenerally, three tests must be met in order for shares to be considered QSBC shares:
December 23, 2013 The Capital Gain Exemption on the Sale of Shares By Jonathan Charron There are various ways to structure the sale of a business in a taxefficient manner. These include a share sale, an
More informationCONTENTS VOLUME II VOLUME I. The detailed contents of both Volume I and II follow. The textbook is published in two Volumes:
CONTENTS The textbook is published in two Volumes: Volume I = Chapters 1 to 10 Volume II = Chapters 11 to 21 Chapter I Chapter II 1 Introduction To Federal Taxation In Canada 11 Taxable Income and Tax
More informationToronto Young Practitioners Group
Family Transactions Biggest issue for young practitioners is communication explaining difficult concepts in meaningful terms. 3 Robin MacKnight Family Transactions Biggest issues in estate planning: Expectations
More informationTABLE OF CONTENTS. Table of Cases... Cases-i Introduction...I-1
TABLE OF CONTENTS Table of Cases... Cases-i Introduction...I-1 Chapter 1: History of Mutual Funds 1.1 Introduction... 1-1 1.2 Joint-Stock Companies and Deed of Trust Companies 1600s... 1-1 1.2.1 The Emergence
More informationTax Planning During an Economic Slowdown
During an Economic Slowdown Andrew Bateman, Felesky Flynn LLP, Felesky Flynn LLP Calgary, AB Introduction A slowing economy may give rise to a changing set of business circumstances, which may involve:
More informationSELECTED TAX ISSUES AND TRAPS ASSOCIATED WITH ESTATE FREEZES
February 2013 Number 601 Discretionary Dividend Shares... 2 SELECTED TAX ISSUES AND TRAPS ASSOCIATED WITH ESTATE FREEZES Michael Goldberg, Minden Gross LLP There are many potential issues and traps that
More informationWhen is "Loss Trading" Permissible: A Purposive Analysis of Subsection 111(5)
When is "Loss Trading" Permissible: A Purposive Analysis of Subsection 111(5), Bennett Jones LLP 67 th Annual Tax Conference 67e Conférence fiscale annuelle 2015 "The general policy of the Act is against
More informationApril 21, 2015 CPA CANADA FEDERAL BUDGET COMMENTARY
April 21, 2015 CPA CANADA FEDERAL BUDGET COMMENTARY TABLE OF CONTENTS BUSINESS INCOME TAX MEASURES... 4 Reduced Small Business Tax Rate... 4 Dividend Tax Credit (DTC) Adjustment for Non-eligible Dividends...
More informationSUCCESSION PLANNING AND THE FAMILY FARM
SUCCESSION PLANNING AND THE FAMILY FARM SPONSORED BY: SCOTIA PRIVATE CLIENT GROUP SCOTIABANK, WINKLER Presented by: Larry H. Frostiak, FCA, CFP, TEP Thursday, April 7, 2011 Succession Planning and The
More informationPrivate Company Tax Proposals Now What? November 22, 2017
Private Company Tax Proposals Now What? November 22, 2017 Welcome Introduction STEVEN CARREIRO Tax Partner KPMG LLP Private Company Consultation Paper How Potential Tax Policy Changes May Impact You and
More informationCHAPTER 2 CHAPTER 1. Procedures And Administration. Introduction To Federal Taxation In Canada. xviii Table Of Contents (Volume 1)
xviii Table Of Contents (Volume 1) CHAPTER 1 Introduction To Federal Taxation In Canada The Canadian Tax System.......... 1 Alternative Tax Bases.......... 1 Taxable Entities In Canada........ 2 Federal
More informationTOSI FOR ADULTS. CRA Presentation to CPA Canada
TOSI FOR ADULTS CRA Presentation to CPA Canada AGENDA Legislative History Basics of old Section 120.4 Overview of Amendments to Section 120.4 New Exclusions from TOSI: Safe Harbours & Other Excluded Amounts
More informationTechnical News. No. 36 July 27, Income Tax. Paragraph 95(6)(b) Principal Purpose
Income Tax Technical News No. 36 July 27, 2007 This version is only available electronically. In This Issue Paragraph 95(6)(b) The Income Tax Technical News is produced by the Legislative Policy and Regulatory
More informationWelcome: Proposed Tax Changes for Private Corporations
Welcome: Proposed Tax Changes for Private Corporations WEBINAR: Proposed Tax Changes for Private Corporations September 18, 2017 2:30-4:30 PM EST Registration URL: https://attendee.gotowebinar.com/register/5371598472188728579
More informationTax Traps to Remember Joan E. Jung, Partner Minden Gross LLP Michael A. Goldberg, Partner Minden Gross LLP Samantha A. Prasad, Partner Minden Gross
Tax Traps to Remember Joan E. Jung, Partner Minden Gross LLP Michael A. Goldberg, Partner Minden Gross LLP Samantha A. Prasad, Partner Minden Gross LLP Matthew Getzler, Associate Minden Gross LLP Ryan
More informationGST/HST and Damage Payments: What Tax Litigators Need to Know
Osler, Hoskin & Harcourt LLP GST/HST and Damage Payments: What Tax Litigators Need to Know D Arcy Schieman March 2017 Overview of GST/HST and Provincial Sales Taxes GST value added tax that applies to
More informationPrivate Company Income Splitting
Private Company Income Splitting Presented by: William Bernstein September 14, 2017 Topics to Review 1. Background to proposed changes 2. Current rules for income splitting with CCPC 3. Proposed changes
More informationTAX PLANNING USING PRIVATE CORPORATIONS
TAX PLANNING USING PRIVATE CORPORATIONS A review of the July 18, 2017 proposals from the Department of Finance Jennifer Dunn, CPA, CA, TEP September 29, 2017 TAX PLANNING USING PRIVATE CORPORATIONS INCOME
More informationFirst Quarter Accounting & Tax Update
First Quarter Accounting & Tax Update Monday, April 11, 2016 kpmg.ca/quarterlyupdate International ), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks
More informationThe essence of 104(13.4), as adopted, is two fold it deems the life interest trust to have a year end at the end of the day of death of the life
The essence of 104(13.4), as adopted, is two fold it deems the life interest trust to have a year end at the end of the day of death of the life interest beneficiary and it deems the capital gain arising
More informationA discussion of corporate-owned life insurance
A discussion of corporate-owned life insurance Persons who seek their livelihood in business are often motivated by a need to place their fate in their own hands. Of course, the desire to make money for
More informationSelected Issues for Canadians Holding and Disposing of US Vacation Property. Carol A. Fitzsimmons, Hodgson Russ LLP Philip Friedlan, Friedlan Law
Holding and Disposing of US Vacation Property, Hodgson Russ LLP, Friedlan Law Toronto Where Are We Going Introduction Overview of US Tax Issues for Nonresident Aliens ( NRAs ) The Case Studies Conclusion
More informationExplanatory Notes Relating to the Income Tax Act
Explanatory Notes Relating to the Income Tax Act Published by The Honourable William Francis Morneau, P.C., M.P. Minister of Finance December 2015 Preface These explanatory notes describe proposed amendments
More informationBusiness Succession Planning 8 th Tax Planning for the Wealthy Family Sept. 20, 2010
Business Succession Planning 8 th Tax Planning for the Wealthy Family Sept. 20, 2010 Miller Thomson LLP James A. Hutchinson 416.597.4381 Rachel L. Blumenfeld 416.596.2105 jhutchinson@millerthomson.com
More informationCCH Estate Planner Federal Budget Targets Planning Involving Minors
CCH Estate Planner Federal Budget Targets Planning Involving Minors By: Michael Goldberg, Tax Partner Minden Gross LLP, a member of MERITAS Law Firms Worldwide. The capital gains exemption for shares of
More informationSELECTED SAFE INCOME ISSUES: RELEVANT PERIOD, GLOBAL COMPUTATION AND ALLOCATION
SELECTED SAFE INCOME ISSUES: RELEVANT PERIOD, GLOBAL COMPUTATION AND ALLOCATION Kenneth Keung, CA, TEP Moodys Gartner Tax Law LLP Calgary 2017 Prairie Provinces Tax Conference & Live Webcast Selected Safe
More informationEXPOSURE DRAFT TREASURY LAWS AMENDMENT (OECD HYBRID MISMATCH RULES) BILL 2017 EXPLANATORY MEMORANDUM
EXPOSURE DRAFT TREASURY LAWS AMENDMENT (OECD HYBRID MISMATCH RULES) BILL 2017 EXPLANATORY MEMORANDUM Table of contents Glossary... 1 Chapter 1 OECD hybrid mismatch rules... 3 Chapter 2 Other effects of
More informationInstructor. Business Combinations 11/17/2011. Gary D. Jenkins
Business Combinations Instructor Gary D. Jenkins Federal Tax Partner National Specialty Line Leader Accounting for Income Taxes McGladrey & Pullen Fort Lauderdale, FL gary.jenkins@mcgladrey.com 1 Before
More informationR3 E Décisions en impôt Donation of Flow - Through Shares
1 of 10 11/12/2009 1:27 AM 2009-0316961R3 E Décisions en impôt Donation of Flow - Through Shares November 11 2009 Document No.: 2009-0316961R3 Please note that the following document, although believed
More informationThe Tax Implications of Asset Securitization
The Tax Implications of Sania Ilahi, Ernst & Young LLP, Toronto, Blake, Cassels & Graydon LLP, Toronto 67 th Annual Tax Conference 67e Conférence fiscale annuelle 2015 Agenda Introduction What? Why? Who?
More informationForeign Affiliates Update Bump Limitation & Surplus Grind Proposals
CANADIAN PETROLEUM TAX JOURNAL Vol. 23, 2010-2 Foreign Affiliates Update Bump Limitation & Surplus Grind Proposals Jennifer Hanna, LL.B Couzin Taylor, LLP 1 * This article is current to August 27, 2010.
More informationUS-Canada Tax Strategies for US Entities Expanding to Canada
US-Canada Tax Strategies for US Entities Expanding to Canada Allinial Global Summit Conference Charleston, SC November 17, 2015 Bill Macaulay, CPA, CA Expanding Business into Canada Overview Key issues
More informationInterested parties are invited to submit comments on the legislative proposals by 15 November 2016.
2016 Issue No. 41 20 September 2016 Tax Alert Canada Finance releases draft income tax technical amendments EY Tax Alerts cover significant tax news, developments and changes in legislation that affect
More informationUpdate on the July 18 th Tax Proposals. Nathan Wright, LL.B., MTAX, TEP Founding Principal Ph: (416)
Update on the July 18 th Tax Proposals Nathan Wright, LL.B., MTAX, TEP Founding Principal Ph: (416) 203-8338 E-mail: nwright@spectrumlawyers.ca July 18, 2017 Proposed Changes On July 18, 2017 Finance Minister
More informationNON-COMPETITION AGREEMENTS: THE NEW RESTRICTIVE COVENANT RULES
NON-COMPETITION AGREEMENTS: THE NEW RESTRICTIVE COVENANT RULES This issue of the Legal Business Report provides current information to the clients of Alpert Law Firm on important tax changes regarding
More informationTax Issues in Asset Purchase Transactions. Catherine A. Brayley
Tax Issues in Asset Purchase Transactions Catherine A. Brayley Overview Assets vs. Shares How to decide? What s the big deal about allocation clauses? Where are the forms? How can they pay tax if they
More informationTax Court Holds PUC Averaging Strategy to Be Abusive Tax Avoidance
Tax Court Holds PUC Averaging Strategy to Be Abusive Tax Avoidance October 19, 2017 John G. Lorito With Canada s general anti-avoidance rule (GAAR) celebrating its 30 th birthday next year, it is surprising
More information2014 Latin America Tax Summit
2014 Latin America Tax Summit Expanding operations through acquisitions Arco Verhulst Global Head of Mergers & Acquisitions Tax, KPMG in the Netherlands Ignacio Sosa Corporate Tax Partner, M&A and Financial
More informationTax Information Bulletin
Tax Information Bulletin Volume Three, No. 7 April 1992 Contents Special Corporate Tax Issue - Business Tax Changes...3 Part I - Dividends...4 Introduction...4 Definitions - Section 2...4 Bonus Issues
More informationMount Bastion Oil & Gas Corp. Share Exchange Instructions for Completion of S.85(1) Rollover Form
Mount Bastion Oil & Gas Corp. Share Exchange Instructions for Completion of S.85(1) Rollover Form This summary provides an explanation of how to complete form T2057 Election on Disposition of Property
More informationRECENT TAX AVOIDANCE JURISPRUDENCE
RECENT TAX AVOIDANCE JURISPRUDENCE Prepared for: 2014 CPTS Annual Conference Christopher J. Montes Felesky Flynn LLP June 4, 2014 AGENDA Pièces Automobiles Lecavalier (debt forgiveness/parking) Lehigh
More informationContents. Application. Summary INCOME TAX INTERPRETATION BULLETIN
INCOME TAX INTERPRETATION BULLETIN NO.: IT-269R4 DATE: April 24, 2006 SUBJECT: REFERENCE: INCOME TAX ACT Part IV Tax on Taxable Dividends Received by a Private Corporation or a Subject Corporation Sections
More informationWithholding Tax on Sale of Partnership Interests
Withholding Tax on Sale of Partnership Interests Steven D. Bortnick Partner bortnics@pepperlaw.com 609.951.4117 Morgan L. Klinzing Associate klinzingm@pepperlaw.com 215.981.4560 March 2, 2018 Key = Partnership
More informationSHARE EXCHANGES TAX LAW FOR LAWYERS. Donald N. Cherniawsky F. Patrick Kirby Mike Dolson. Felesky Flynn LLP. May 23, 2011 H2O
TAX LAW FOR LAWYERS SHARE EXCHANGES Donald N. Cherniawsky F. Patrick Kirby Mike Dolson May 23, 2011 H2O 929234 1 Section 51 > Section 51 provides a tax-free rollover for certain conversions of debt issued
More informationCertain Canadian Federal Income Tax Considerations
The following summary is intended to provide information that may be of assistance to a beneficial owner of a Trust Unit or a Maple Leaf Share, as the case may be, who disposes, or is deemed to have disposed,
More informationRecent Tax Developments Impacting Insurance Planning
Recent Tax Developments Impacting Toronto, LL.B, CLU, TEP Overview Exempt Test Update New Charitable Gifting Legislation Trust Legislation LIA Grandfathering CRA Update Life insurance in spousal trusts
More information21-YEAR TAX ISSUES AND THE NON-SPECIALIST ADVISOR PART 1
June 2018 Number 665 Current Items of Interest... 4 21-YEAR TAX ISSUES AND THE NON-SPECIALIST ADVISOR PART 1 Michael Goldberg, partner through a professional corporation at Minden Gross LLP What To Do
More informationI. INCOME SPRINKLING. October 2, 2017
October 2, 2017 Mr. Brian Ernewein General Director, Legislation Tax Policy Branch Department of Finance Canada 90 Elgin Street Ottawa ON K1A 0G5 Dear Sir or Madam: Re: Consultation on July 18, 2017 Tax
More informationWealth Planning Fact Finder
Date: Information First Name Last Name Date of Birth Gender Retirement Age Marital Status Marital Date Citizenship Address Province Phone Number Will (Yes/No) Date of Last Will Power of Attorney (Yes/No)
More informationControlled foreign companies (CFC) reform publication of draft legislation. 6 December 2011
Controlled foreign companies (CFC) reform publication of draft legislation 6 December 2011 On 6 December 2011, the Government published draft legislation introducing a new CFC regime which will be included
More information