Subsection 55(2) of the Income Tax Act is a specific anti-avoidance rule aimed at "capital gain strips" and has been in the Act for over 30 years.
This article identifies challenges in interpreting regulations 5907(1.5) and (1.6) and explores the potential significance of their enactment relative to other provisions of the Income Tax Act and regulations that compute amounts based on foreign tax payments.
The authors of this article argue that the Tax Court of Canada’s decision in George Weston Limited v. The Queen is a natural and expected result of 75 years of UK and Canadian jurisprudence on the treatment of foreign exchange gains and losses and gains and losses arising from hedging activity such as currency swaps and commodity futures trading.
The 2014 year continued to bring significant changes to the global transfer pricing landscape, which in turn influenced the Canadian transfer pricing environment.
This article discusses the treaty shopping proposals in the September 2014 Organisation for Economic Co-operation and Development (OECD) report and Canada’s 2014 federal budget, commenting on the direction that Canada may take to counter treaty shopping.
The Academy of Applied Pharmaceutical Sciences recently learned the hard way that advice provided by a CRA auditor may not necessarily apply to future reporting periods.
This article provides an overview of the "final" FA reorganization rules and includes a discussion of the practical planning considerations that arise when working with these provisions.
Do large Canadian corporations pay their fair share of taxes? This short article highlights the issues and the findings of a survey of 63 top Canadian companies.
Aggressive tax planning has become a hot political issue. Tax inversions by familiar US corporations are in the news. From the perspective of the Canadian tax system, this paper considers aggressive tax planning, highlighting the OECD’s efforts to combat base erosion and profit shifting.
US revocable trusts present special challenges when high-net-worth individuals move to Canada because of distinct tax rules on opposite sides of the border.
Adding strategic value to the organization is now part of the global tax leader’s role. The challenge is to overcome inefficient manual processes through well-chosen strategic investments in people, processes, technology and data.
BEPS is likely to have important implications on indirect tax in the digital economy. The OECD is studying the topic, and Canada’s Department of Finance has sought input from stakeholders.
The federal government is pondering some welcome GST changes that can help those who provide outsourcing services to the financial sector.
Canadian taxpayers face a changing transfer pricing environment, emphasized by BEPS mandate of the OECD, while continuing to manage aggressive CRA audits in respect of transfer pricing issues, and procedural and timing aspects of the audits themselves. This article reviews these issues and related transfer pricing developments in 2013.
This In Print sheds light on the rising GST cost of investing.
In addition to an overview of the new upstream loan provisions, this article by Ken Buttenham, a partner in our Toronto office, provides a framework for determining when they will apply, highlights inherent uncertainties in the legislation and offers suggestions for dealing with the new rules.
This In Print addresses challenges created by the current withholding regime in the Income Tax Act and regulations 105 and 102, from the joint perspectives of a tax advisor and a taxpayer
The upstream loan rules announced on August 19, 2011 and enacted on June 26, 2013 require an analysis of all loans or indebtedness owing to foreign affiliates of a Canadian taxpayer