In The Queen v. PwC as Trustee in Bankruptcy for Bioartificial Gel Technologies (Bagtech) Inc., 2013 FCA 164 (Bagtech), the Federal Court of Appeal (FCA) confirmed the full scope of the Supreme Court of Canada’s decision in Duha Printers…
In 2012-0441771R3 (released September 18, 2013), the CRA ruled that an exploration program underneath the site of a former open pit mine would qualify as “Canadian exploration expenses” (CEE) notwithstanding that a former mine at the site had previously…
In 2013-0491061R3, the CRA ruled that a Canadian company’s repayment of upstream loans, followed by the sale of an entire foreign affiliate group to the foreign parent company, would be considered a bona fide repayment and not part of…
In 2012-0463611R3 (released September 18, 2013), the CRA ruled on a divisive reorganization of a particular foreign affiliate (FA 1) into two foreign affiliates (Newco and FA 1). The purpose was to consolidate existing loans (FA Loans) made by…
In 2013-0479161E5, the CRA confirmed that a net capital loss not reported in a statute-barred year may be carried forward and used in an open year. A net capital loss for a year is defined in part as the…
In 2013-0481691E5, the CRA confirmed that losses realized on monthly foreign currency forward contracts were on income account, notwithstanding that they were settled and re-entered into over the same 4-year period of a foreign currency capital loan made to…
In River Hills Ranch Ltd. (et al.) v. The Queen (2013 TCC 248), the Tax Court of Canada (Tax Court) examined the principles of contract interpretation and concluded that certain contractual payments made to the taxpayer were merely “dressed…
The Department of Finance (Finance) continues its ambitious agenda. On August 12, 2013, Finance released its Consultation Paper on Treaty Shopping and asked for comments by December 13, 2013. Comments may be submitted by email to Treaty.Shopping-Chalandage.Fiscal@fin.gc.ca. On…
In 2012-0470921E5 (released August 21, 2013), the CRA’s Rulings Directorate said the addition of a new partnership to an existing chain of partnerships means that all the partnerships would thereafter have a December 31 year end. In the case…
In February 2013, the OECD issued its report addressing “base erosion and profit shifting” (BEPS) by multinational enterprises: see my quick update at http://thor.ca/blog/2013/02/finance-embraces-oecds-report-on-base-erosion-and-profit-shifting/. On July 19, 2013, the OECD released its Action Plan for this ambitious project (see…