Sale of Tax Losses The Act contains many provisions that are designed to ensure that a corporation’s tax losses cannot be used by unrelated [or sometimes unaffiliated] persons unless they continue to carry on the corporation’s business with a reasonable expectation of profit. However, these loss restriction rules generally only apply when the unrelated persons […]
Loss Consolidation – Unanimous Shareholder Agreements In the past, the CRA has repeatedly stated that loss consolidation transactions that are legally effective and otherwise comply with the technical provisions of the Act would not ordinarily fall within the scope of section 245, provided that the transfer of income or deductions is within an affiliated group
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NO: IT-373R2 SUBJECT: INCOME TAX ACT Woodlots REFERENCE: Section 9 (also subparagraph 40(2)(g)(iii); paragraphs 12(1)(g), 18(1)(a) and 18(1)(h); subsections 18(2), 28(1), 70(9), 70(9.1), 70(9.2), 70(9.3), 73(3) and 248(1); and sections 31, 43, 46, 54, 67, 110.6 and 111) Application This bulletin is a consolidation of the following: IT-373R2 dated July 16, 1999; and subsequent amendments thereto.
NO.: IT-206R DATE: October 29, 1979 SUBJECT: INCOME TAX ACT Separate businesses REFERENCE: Section 3 (also sections 14 and 128, subsection 111(5); and Regulations 1101(1) and 2605) This bulletin replaces and cancels Interpretation Bulletin No. IT-206 dated April 14, 1975. Current revisions are designated by vertical lines. 1. The question of whether a taxpayer is conducting one business
Income Tax Folio S4-F7-C1, Amalgamations of Canadian Corporations Series 4: Businesses Folio 7: Wind-ups, Dissolutions and Amalgamations Chapter 1: Amalgamations of Canadian Corporations Summary This Chapter outlines the Canada Revenue Agency’s (CRA) views on a number of issues relating to the amalgamation of two or more taxable Canadian corporations as described in subsection 87(1) (referred to in this
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Series 4: Businesses Folio 8: Losses Chapter 1: Business Investment Losses Summary A taxpayer’s business investment loss is basically a capital loss from a disposition of shares in, or a debt owing to the taxpayer by, a small business corporation (SBC) where the disposition is: to an arm’s-length person; or one to which subsection 50(1) applies. One-half of this loss
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Income Tax Folio S3-F2-C1, Capital Dividends Series 3: Property, Investments and Savings Plans Folio 2: Dividends Chapter 1: Capital Dividends Summary This Chapter discusses capital dividends and the capital dividend account (CDA). The CDA keeps track of various tax-freesurpluses accumulated by a private corporation. These surpluses may be distributed tax-free in the form of capital dividends to the
Income Tax Folio S5-F2-C1, Foreign Tax Credit Series 5: International and Residency Folio 2: Foreign Tax Credits and Deductions Chapter 1: Foreign Tax Credit Summary Section 126 of the Act makes a foreign tax credit available to a taxpayer who at any time in a year is a resident of Canada, or in certain limited circumstances is
NO: IT-262R2 DATE: November 28, 1996 SUBJECT: INCOME TAX ACT Losses of Non-Residents and Part-Year Residents REFERENCE: Section 114, subsection 111(9) and paragraphs 115(1)(c) and 115(1)(e) (also sections 3, 31 and 80 and subsections 2(3), 96(2.1), 111(1), 111(1.1), 111(3) and 111(8)) Application This bulletin cancels and replaces IT-262R dated August 30, 1985. Summary The Income Tax Act contains a system of rules
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NO: IT-232R3 DATE: July 4, 1997 SUBJECT: INCOME TAX ACT Losses – Their Deductibility in the Loss Year or in Other Years REFERENCE: Subsection 111(1) and paragraph 3(d) (also sections 3, 31, 41, 80, 110.5, 111.1 and 120.1, the definitions of “personal-use property” and “listed personal property” in section 54, subsections 46(1), 96(2.1), 96(2.2), 96(2.4), 110.4(2),
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