{"id":1316,"date":"2014-11-03T16:09:04","date_gmt":"2014-11-03T16:09:04","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1316"},"modified":"2014-11-03T16:09:04","modified_gmt":"2014-11-03T16:09:04","slug":"cra-restricts-new-ploi-regime-to-new-loans-after-march-28-2012","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/11\/cra-restricts-new-ploi-regime-to-new-loans-after-march-28-2012\/","title":{"rendered":"CRA restricts new PLOI regime to \u201cnew\u201d loans after March 28, 2012"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/11\/2013-0506551E5.pdf\">2013-0506551E5<\/a>, the CRA confirmed its view that a loan made after March 28, 2012 <em>cannot<\/em> benefit from the new regime for a \u201cpertinent loan or indebtedness\u201d (PLOI, s. 15(2.11)) if such loan were part of a \u201cseries of loans and repayments\u201d which began <em>before<\/em> that time.<\/p>\n<ol>\n<li>Instead, the (original) loan made <em>before<\/em> March 29, 2012 would be caught by the deemed dividend rule in s. 15(2).\u00a0 The exception in s. 15(2.6) would not save this original loan from s. 15(2), because repayment of the loan would be part of the series of loans and repayments.\u00a0 Accordingly, any election later filed under s. 15(2.11) in these circumstances would be considered invalid.<\/li>\n<li>\u00a0The CRA\u2019s position applies only were there has been \u201ca series of loans and repayments\u201d.\u00a0 This latter concept is <em>not<\/em> satisfied where there is: (i) a <em>bona fide<\/em> loan for a genuine business purpose, (ii) a repayment of that loan from an independent source, and (iii) an unrelated subsequent loan for a wholly different purpose: see <em>Meeuse v. The Queen<\/em>, 94 D.T.C. 1397 (TCC), at paragraph 16.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/11\/2013-0506551E5.pdf\">2013-0506551E5<\/a>, the CRA confirmed its view that a loan made after March 28, 2012 <em>cannot<\/em> benefit from the new regime for a \u201cpertinent loan or indebtedness\u201d (PLOI, s. 15(2.11)) if such loan were part of a \u201cseries of&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-1316","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1316","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=1316"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1316\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}