In 2012-0439741I7 (released October 23, 2013), the CRA’s Sudbury office considered treating a Canadian company’s preferred share investment in a first-tier foreign affiliate as a loan, with the result that tax-free dividends on the preferred shares were proposed to…
In 2012-0467721R3 (released October 16, 2013), the CRA ruled that a deemed dividend paid by a Canadian unlimited liability company (ULC) to a US parent company qualified for the 5% withholding tax rate under the Canada-US tax treaty (Treaty).…
On October 15, 2013, the Joint Committee made useful submissions to Finance on draft legislation released September 13, 2013 (see http://thor.ca/blog/2013/10/department-of-finance-tax-related-quick-update-report/ for a quick summary of the latter). Among the Joint Committee’s submissions were the following items.
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In 2013-0480321C6, the CRA confirmed its view that US tax levied directly on a Canadian corporate parent (Canco) of a transparent US limited liability company (LLC) would not be deductible or creditable to Canco until such time as the…
On September 13, 2013 the Department of Finance released significant draft legislative proposals. The attached Quick Update Report outlines the corporate tax-related items in this release, which
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In 2013-0474671E5, the CRA concluded that “the simple holding of shares” by a US company is not a business activity, and as such, would be ignored when applying the “more closely connected business activities” exception in the new “foreign…
The CRA recently released three tax interpretations relating to the mining industry.
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In 2013-0487871I7, the CRA rulings directorate advised a local CRA office that certain tax elections filed with the taxpayer’s original tax return should not be considered as late-filed, even though the tax return itself was late-filed. Various provisions require…
In 2010-0387631I7 (released September 25, 2013), the CRA’s head office advised a local tax services office that the general anti-avoidance rule could be used, in some cases, to convert a tax-free dividend on foreign affiliate shares into a taxable…
In Envision Credit Union v. The Queen, 2013 SCC 48, the Supreme Court of Canada (SCC) held that parties to an amalgamation could not legally contract out of the automatic consequences of an amalgamation under the applicable corporate statute,…