Foreign entity classification for Canadian income tax purposes: Canada Revenue Agency’s recent comments
Since Canada taxes a “person,” it is important to determine whether a foreign entity is classified by Canada Revenue Agency (“CRA”) as a corporation (and therefore a “person”) or something else, such as a partnership or a trust. The classification […]
The stated policy objectives of the new 2% tax on equity repurchases
The Canadian government released updated draft legislation on August 4, 2023 to introduce a new 2% tax on certain equity repurchases starting January 1, 2024. In general terms, the tax applies to net repurchases[1] of Canadian public company shares in […]
Fairness and economic substance: Select comments on the proposed changes to the General Anti-Avoidance Rule
Canada’s 2023 federal budget was released on March 28, 2023 and contained proposals for changes to the general anti-avoidance rule (“GAAR”). We published a summary overview of the proposed changes to the GAAR on March 28. This article provides some […]
Release of draft Canadian tax legislation
On August 9, 2022, legislative proposals relating to the Income Tax Act (the “Act”) and other tax legislation were released by the Department of Finance for public feedback (the “August Proposals”). The August Proposals seek to implement certain measures previously […]
Failed claim of solicitor-client privilege: Commentary on Minister of National Revenue v. BMO Nesbitt Burns Inc., 2022 FC 157
In the 2022 case, Minister of National Revenue v. BMO Nesbitt Burns Inc., the Minister of National Revenue (the “Minister”) made an application pursuant to section 231.7 of the Income Tax Act (Canada) (the “Act”) for an order requiring BMO […]
Release of draft Canadian tax legislation for public consultation
An extensive package of draft legislative proposals was released for public comment by the Department of Finance on February 4, 2022 (the “Proposals”) along with explanatory notes (the “Notes”). The Proposals include some, but not all, of the measures announced […]
Have losses? Plan so that you can use them!
One of the consequences of COVID-19 is volatility in the stock market. Some investors facing losses in their portfolios are considering strategies to crystallize them and use the losses to offset capital gains. One-half of capital losses (referred to as […]
Planification de vente d’achalandage – Incidences fiscales du budget fédéral de 2016
Les immobilisations admissibles comprennent les listes de clients, les droits de franchise, les permis, les licences, les quotas et d’autres biens incorporels. Elles comprennent également l’achalandage, qui correspond de façon générale à l’excédent de la valeur d’une société sur la […]
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