{"id":1131,"date":"2014-05-26T16:49:06","date_gmt":"2014-05-26T16:49:06","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1131"},"modified":"2014-05-26T16:49:06","modified_gmt":"2014-05-26T16:49:06","slug":"cra-issues-quasi-ruling-on-arms-length-dealing-in-foreign-affiliate-context","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/05\/cra-issues-quasi-ruling-on-arms-length-dealing-in-foreign-affiliate-context\/","title":{"rendered":"CRA issues quasi-ruling on arm\u2019s length dealing in foreign affiliate context"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/05\/2013-0510551R3.pdf\">2013-0510551R3<\/a>, a Canadian company (Canco) held a 50% interest in a foreign company (JV Co) indirectly through Canco\u2019s wholly-owned Luxembourg financing affiliate (Finco).\u00a0 Canco subscribed for preferred shares of Finco; Finco in turn lent funds to JV Co.\u00a0 The other (unrelated) shareholder of JV Co lent an equivalent amount to JV Co.\u00a0 The CRA ruled that Canco would not be subject to the upstream loan rule in s. 90(6) in respect of Finco\u2019s loan to JV Co, \u201cprovided that\u201d JV Co dealt at arm\u2019s length with Canco in fact.\u00a0 Although the ruling was conditional, for all practical purposes the CRA accepted that JV Co dealt at arm\u2019s length with Canco based on several pages of representations describing the corporate governance of JV Co (see paragraphs 13-20).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/05\/2013-0510551R3.pdf\">2013-0510551R3<\/a>, a Canadian company (Canco) held a 50% interest in a foreign company (JV Co) indirectly through Canco\u2019s wholly-owned Luxembourg financing affiliate (Finco).\u00a0 Canco subscribed for preferred shares of Finco; Finco in turn lent funds to JV Co.\u00a0&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1131","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1131"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1131\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}