This article reviews the operation of the new back-to-back regime as an anti-treaty-shopping measure and suggests limited modifications that should be considered to increase the effectiveness of the rules and prevent the denial of treaty benefits in inappropriate circumstances.
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.
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.
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 2014 year continued to bring significant changes to the global transfer pricing landscape, which in turn influenced the Canadian transfer pricing environment.
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