{"id":1387,"date":"2015-01-19T16:16:31","date_gmt":"2015-01-19T16:16:31","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1387"},"modified":"2015-01-19T16:16:31","modified_gmt":"2015-01-19T16:16:31","slug":"cra-applies-the-gaar-to-deny-ruling-on-rollover-to-a-corporate-partnership","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2015\/01\/cra-applies-the-gaar-to-deny-ruling-on-rollover-to-a-corporate-partnership\/","title":{"rendered":"CRA applies the GAAR to deny ruling on rollover to a corporate partnership"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-0547321C6.pdf\">2014-0547321C6<\/a>, the CRA considered a ruling request which involved a tax-deferred transfer (rollover) of depreciable property to a captive Canadian partnership under s. 97(2), followed immediately thereafter by the contribution of cash to the partnership by a non-resident (as a new partner).\u00a0 The cash contributed by the non-resident was used to pay out a note that was issued on the rollover.\u00a0 The CRA confirmed that the GAAR Committee denied the requested ruling on the ground that the transactions resulted in a misuse or abuse of the Act having regard to the rules in s. 100(1), 100(1.4), and 100(1.5).\u00a0 In particular, had the transactions instead involved a rollover to the captive Canadian partnership followed by a direct <em>sale<\/em> of a partnership interest to the non-resident, a <em>portion<\/em> of the deferred recapture (on the rollover) would have been fully taxed under s. 100(1) (on the subsequent sale).\u00a0 Accordingly, in the CRA\u2019s view the transactions as structured resulted in abusive tax avoidance under s. 245.\u00a0 The CRA did not expressly comment on whether the result could be different if the partnership held only capital non-depreciable property.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-0547321C6.pdf\">2014-0547321C6<\/a>, the CRA considered a ruling request which involved a tax-deferred transfer (rollover) of depreciable property to a captive Canadian partnership under s. 97(2), followed immediately thereafter by the contribution of cash to the partnership by a non-resident&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-1387","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1387","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=1387"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1387\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}