Expropriation-related tax issues:

A case study in how to stay ahead

One of the most common questions brought up during the course of expropriation proceedings is what are the tax consequences? The answer to this question is rarely simple and normally requires knowledge of the specific details of each case to ensure that the proper tax treatments are considered. Despite these intricacies, due to the involuntary nature of an expropriation, the Income Tax Act (Canada) (the “ITA”) includes special rules with the underlying intention of mitigating certain immediate tax consequences that might otherwise arise.

To learn more, we invite you to read this case study that discusses the tax implications related to an expropriation from a high level, with a focus on common elements that are involved in an expropriation.