{"id":1433,"date":"2015-02-02T16:13:09","date_gmt":"2015-02-02T16:13:09","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1433"},"modified":"2015-02-02T16:13:09","modified_gmt":"2015-02-02T16:13:09","slug":"cra-says-mid-year-amalgamation-did-not-engage-partnership-deferral-rules","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2015\/02\/cra-says-mid-year-amalgamation-did-not-engage-partnership-deferral-rules\/","title":{"rendered":"CRA says mid-year amalgamation did not engage partnership deferral rules"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/02\/2014-0539191E5.pdf\">2014-0539191E5<\/a>, a Canadian corporation (A Co) with a December 31 taxation year end had a significant interest in a partnership (Partnership) with a fiscal period also ending December 31.\u00a0 On August 1, 2014 A Co amalgamated with its wholly-owned subsidiary forming Amalco, resulting in a deemed year-end for A Co of July 31, 2014.\u00a0 Amalco established December 31 as its first taxation year end.\u00a0 On these facts, the CRA confirmed that A Co would not recognize any income from the Partnership for A Co\u2019s short taxation year January 1 to July 31, 2014.\u00a0 The partnership income deferral rule in s. 34.2(2) would not apply to A Co because no fiscal period of the Partnership ended in A Co\u2019s short taxation year.\u00a0 Furthermore, the rule in s. 34.2(2) also did not apply to Amalco, because the end of the Partnership\u2019s fiscal period fully aligned with Amalco\u2019s first taxation year end: i.e., December 31, 2014.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/02\/2014-0539191E5.pdf\">2014-0539191E5<\/a>, a Canadian corporation (A Co) with a December 31 taxation year end had a significant interest in a partnership (Partnership) with a fiscal period also ending December 31.\u00a0 On August 1, 2014 A Co amalgamated with its&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-1433","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1433","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=1433"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1433\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}