{"id":1335,"date":"2014-11-24T16:55:40","date_gmt":"2014-11-24T16:55:40","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1335"},"modified":"2014-11-24T16:55:40","modified_gmt":"2014-11-24T16:55:40","slug":"cra-interprets-upstream-loan-rules-to-avoid-double-tax","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/11\/cra-interprets-upstream-loan-rules-to-avoid-double-tax\/","title":{"rendered":"CRA interprets upstream loan rules to avoid double tax"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/11\/2013-0499121E5.pdf\">2013-0499121E5<\/a>, the CRA considered a simple case where an upstream loan was made to a Canadian parent (Canco) by a second tier foreign affiliate (FA 2), and was effectively sheltered by Canco\u2019s exempt surplus in respect of FA 2.\u00a0 FA 2 later liquidated into the first tier foreign affiliate (FA 1).\u00a0 The CRA said that it would apply the helpful rule in s. 248(28)(a) to remedy the technical double tax problem that arises on these facts.\u00a0 Double tax arises because: (a) the loan assigned to FA 1 on the liquidation of FA 2 would become a <em>second<\/em> upstream loan to Canco from FA 1, and (b) the first loan from FA 2 would not have been <em>repaid<\/em> by Canco on the liquidation of FA 2.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/11\/2013-0499121E5.pdf\">2013-0499121E5<\/a>, the CRA considered a simple case where an upstream loan was made to a Canadian parent (Canco) by a second tier foreign affiliate (FA 2), and was effectively sheltered by Canco\u2019s exempt surplus in respect of FA&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-1335","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1335","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=1335"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1335\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}