11th Taxation of Financial Products and Derivatives

Understand recent tax structures and identify key tax issues arising in the design of structured products
Date: September 9 & 10, 2014
Location: Toronto
See Full Description: Download PDF

Highlights

- Hear from our faculty of leading Canadian tax specialists to get senior-level, up-to-date tax information on financial products and derivatives

- Get a detailed overview of what is in the capital markets

- Update your knowledge of recent case law affecting the tax treatment of structured products and derivatives

- Analyze the tax consequences of cross-border financing techniques and financial products

- Review the guidelines in applying reputational risk standards to tax structuring

- Hear the latest practices in identifying and bifurcating complex, hidden financial instruments

- Avoid tax traps in planning for the use of financial products

- Look at the tax implications of using default derivatives

Faculty

FACULTY
COURSE LEADERS
Ryan L. Morris, WeirFoulds LLP
Ryan Morris is a Partner at WeirFoulds LLP. He advises clients on a wide variety of domestic and international taxation matters including derivatives, linked notes and structured investment products. He also represents clients with audits, voluntary disclosures and appeals.
David P. Stevens, Gowling Lafleur Henderson LLP
David Stevens is a Partner at Gowling Lafleur Henderson LLP. He practises taxation law with a focus on corporate tax, personal tax planning and charities. His corporate tax practice involves advising clients on corporate finance, reorganizations and mergers and international tax planning.
CO-LECTURERS
Mario M. Abrioux, KPMG LLP
Mario Abrioux is a Partner KPMG Law LLP. He has a broad corporate income tax approach, with particular emphasis on the taxation of financial institutions.
Edward A. Heakes, Norton Rose Fulbright Canada LLP
Edward A. Heakes is a Senior Partner at Norton Rose Fulbright Canada LLP. He has extensive experience in taxation issues applicable to resource industries.
Kenneth R. G. Hildebrant,, TD Bank Financial Group
Kenneth R. G. Hildebrant is Associate Vice President - Corporate Tax at TD Bank Financial Group. He has 20+ years experience in Canadian income tax.
Richard Johnson, Torys LLP
Richard Johnson is a Partner at Torys LLP. His practice focuses on all areas of tax law. His experience includes structured financial products, lending and securitization. A.
Abigail Kan, McGovern Hurley Cunningham LLP
Abigail Kan is Tax Director at McGovern, Hurley, Cunningham LLP with over 20 years of tax experience between public practice, industry and the CR
Ji Kwon, KPMG LLP
Ji Kwon is a Senior Manager at KPMG LLP. She works with traditional banking and insurance clients as well as with clients in the investment dealer and investment management industry.
Heather McGeorge, BMO Nesbitt Burns
Heather McGeorge is Director, Tax Planning at BMO Nesbitt Burns. She has extemsive experience resolving tax disputes and providing tax compliance and planning advice.
Adam Mendes, Ontario Teachers’ Pension Plan Board
Adam Mendes is Manager of Tax at the Ontario Teachers' Pension Plan Board. He has extensive experience in tax structuring, the tax aspects of mergers and acquisitions, corporate reorganizations and cross border transactions.
Matias Milet, Osler, Hoskin & Harcourt LLP
Matias Milet is a Partner at Osler, Hoskin & Harcourt LLP. He advises on Canadian tax issues associated with cross-border business ventures and transactions, investment funds and pension funds.
Andrew Spiro, Blake, Cassels & Graydon LLP
Andrew Spiro is a Partner at Blake, Cassels & Graydon LLP. His practice focuses on income tax planning, with a primary focus on domestic and international corporate tax, the taxation of income trusts, REITs and other investment vehicles, and structured products.
Vitaly Timokhov, TaxChambers LLP
Vitaly Timokhov is a Partner at TaxChambers LLP. He practises exclusively in Canadian federal income taxation and tax planning.

Program

COURSE PROGRAM
Taxation of Derivatives: Basic Principles
Given the lack of clear statutory guidance and the complex nature of derivative instruments themselves, the taxation of derivatives may be viewed as a daunting subject by tax practitioners unfamiliar with the subject matter. This session is intended to be a high-level introduction to the taxation of derivatives, focusing on the basic principles that are relevant when assessing the income tax treatment of a derivative instrument. The discussion in this session focuses on basic key concepts relating to the taxation of derivatives, including:

Characterization: income vs. capital treatment

Timing, including a discussion of the tracking property concept

Tax treaties and derivatives

Basic documentation

Basic Instruments Used in Developing Financial Products
In recent years, financial products and derivatives have become a mainstay of financial markets. Corporations and financial institutions are using these products to hedge risks or gain certain financial or economic benefits. This session will provide a detailed understanding of what these products are and provide an overview of what is happening in the capital markets.

Recent market developments

Risk management policy

Main derivatives traded by corporations: the economics of these instruments?

Hedging strategies

Accounting for derivatives: hedge accounting

Tax Structured Instruments and Reputational Risk
Recently, the issue of using structured products and derivatives to achieve tax results has become increasingly questionable. The challenge of navigating this issue is key to tax practitioners working in this area. This discussion will address the following topics:

Parameters of reputational risk

Documentation requirements

Guidelines in applying reputational risk standards to tax structuring

Risks of opportunistic tax arbitration

The purpose of a structured investment

Embedded Derivatives
An embedded derivative can arise from deliberate financial engineering and intentional shifting of certain risks between parties. However, many embedded derivatives arise inadvertently through market practices and common contracting arrangements. This presentation looks at the latest practices in identifying and bifurcating complex, hidden financial instruments.

Standard business agreements or terms that could be an embedded derivative

How to conduct an enterprise-wide inventory of embedded derivatives

Accounting for financial instruments and embedded derivatives

Hedge accounting

Issues in the fair valuation of embedded derivatives

Looking at specific examples of embedded derivatives

Forwards, Futures and Currency Swaps Tax Considerations
This presentation will explore the tax implications, advantages and disadvantages of using forwards, futures and currency swaps. You will learn about various legislation, rulings and court decisions that affect the taxation of these products.

Income tax treatment of gains or losses in respect of futures, forwards and foreign exchange transactions

Income versus capital treatment

Use of the funds hedged by a currency swap

Examples of tax planning for options and futures contracts

Strategic use of margins and speculation

Taxation of Securities Lending Arrangements and Repurchase Transactions
This session is intended to provide a review of the treatment of securities lending arrangements and repurchase transactions under the Income Tax Act Canada.

Classification as a securities lending arrangement

Treatment of the transfer and the return

Treatment of compensation payments

Considerations for nonresidents

Latest Developments In The Taxation Of Derivatives And Financial Products
This session will review recent developments relating to the taxation of derivatives, including:

Recent CRA interpretations

Requirement for hedging arrangements on capital account to have sufficient "linkage" to capital transactions

Practical Considerations in the Taxation of Financial Products
Changes in tax law often leads to the design of new financial product offerings. This session takes a practical look at recent tax structures and identify key tax issues and challenges that arise in the design of financial products. It will also address changes in law as it relates to financial products, including financial transaction taxes. Other topics addressed include:

Taxation of derivatives and synthetic financial products in Canada and abroad

Key tax issues and challenges arising in new financial products

Withholding tax issues and financial transaction taxes

FATCA primer

Taxation of Options
Options can be used to minimize risk associated with investments, to raise capital, to speculate or, as in the case of stock options, as part of an employee compensation program. An option is not included in the definition of Canadian security in subsection 39(6) and consequently, it is not covered by a taxpayer election under subsection 39(4) to treat any gain arising on disposition of a "Canadian security" as a capital gain. Therefore, whether option transactions are on account of income or capital is a question of fact.

Factors that would be considered in the income or capital determination

Developing a financial strategy using options and futures contracts

Taxation of Cross-Border Financing and Investment
As North American markets continue to be volatile, the need for senior level, up-to-date tax information is critical. Tax agencies are becoming increasingly aggressive in this climate as they target new tax planning devices and challenge existing strategies. This session will highlight the Canadian taxation implications of a number of cross-border financing and investment structures.

Cross-border financing and investment structures

Related party cross-border financing and structuring

Cross-border compliance: effect of FATCA on tax planning

Hybrid entities and the Canada-U.S. tax treaty: update

Tax Treaty update: new Barbados and Hong-Kong tax treaties

Treaty Shopping and Limitations on Benefits: practical considerations

Effect of recent administrative guidance and proposed legislation

Multimedia Presentations

MULTIMEDIA PRESENTATION
Taxation of financial products and derivatives: Basic principles
Mario M. Abrioux
McCarthy Tétrault LLP
Practical considerations to taxation of financial products & derivatives
Hersh Joshi
Ontario Teacher's Pension Plan Board
Taxation of cross-border financing & investment
Sabrina Wong
Blake, Cassels & Graydon LLP
Embedded derivatives
Carmela Pallotto
KPMG LLP
Tax traps and how to avoid them
Jonathan W. Willson
Stikeman Elliott LLP
Forwards, futures and currency swaps tax considerations
Laura M. White
Borden Ladner Gervais LLP
Taxation of options
Catrina M. Card
Torys LLP
Taxation of securities lending arrangements and repurchase transactions
Lara G. Friedlander
Osler Hoskin & Harcourt LLP
Latest developments in the derivatives market & regulation
Margaret Grottenthaler
Stikeman Elliott LLP
Tax & reporting issues impacting the use of derivatives
Hugh Chasmar
Deloitte & Touche LLP
Taxation of debt instruments
Lara G. Friedlander
Osler Hoskin & Harcourt LLP
Income tax analysis of default derivatives
John J. Tobin
Torys LLP
Identifying embedded derivatives and accounting treatment
Bhupender Gosain
MNP LLP
Accounting for income taxes - financial instruments
Pamela Zabarylo
KPMG LLP
Fair value measurement of financial instruments
Melanie Russell
Kalex Valuations
Disclosure requirements for financial instruments
Kevin Moshal
Grant Thornton LLP
An overview of the upcoming changes to hedge accounting in IFRS 9
Kirsty Merath
PricewaterhouseCoopers LLP
Impairment and credit losses
Abhimanyu (Abhi) Verma
KPMG LLP
Implementing hedge accounting standards
Humayun Jafrani
Ernst & Young LLP
Financial instrument recognition, classification and measurement
Mahesh Narayanasami
KPMG LLP
Developments in financial instruments
Lara G. Friedlander
Osler, Hoskin & Harcourt LLP
Taxation of structured products & derivatives: Impact of recent tax rules
Richard Marcovitz
PricewaterhouseCoopers LLP
Impact of IFRS on tax planning, accounting and compliance for financial institutions
Carmela Pallotto
KPMG LLP
Complying with disclosure requirements for financial instruments
Linda F. Mezon
Royal Bank of Canada
Taxation of structured products & derivatives
Lara Friedlander
Osler, Hoskin & Harcourt LLP

Participants

Blake, Cassels & Graydon LLP

BMO Nesbitt Burns

Gowling Lafleur Henderson LLP

KPMG LLP

McGovern Hurley Cunningham LLP

Norton Rose Fulbright Canada LLP

Ontario Teachers’ Pension Plan Board

Osler, Hoskin & Harcourt LLP

TaxChambers LLP

TD Bank Financial Group

Torys LLP

WeirFoulds LLP

Who should attend

Tax executives in the financial sector & other industries, tax accountants and tax lawyers who want to expand this knowledge area or keep up-to-date in order to best serve the needs of their clients

Price

Price list:-
  • Course: $1975
  • Webcast only : $1575
  • Webcast and Proceedings : $1874
  • Course and Proceedings : $2274
  • Proceedings Only: $799
Order Now>>

View PDF

Additional Information

REGISTRATION:
To reserve your place, call Federated Press toll-free at 1-800-363-0722. In Toronto, call (416) 665-6868 or fax to (416) 665-7733. Then mail your payment along with the registration form. Places are limited. Your reservation will be confirmed before the event.
LOCATION:
Courtyard by Marriott Downtown Toronto, 475 Yonge Street, Toronto, ON, M4Y 1X7, (800) 847-5075
CONDITIONS:
Registration covers attendance for one person, the supplementary course material as described in this document, lunch, morning coffee and refreshments during breaks are provided for registered duration. The proceedings of the event will be captured on audio or video. Multimedia proceedings with all slides and handouts can be purchased separately on a CD-ROM which will also include the event material.
TIME:
Registration begins at 8:00 a.m. The morning sessions start promptly at 9:00.
CANCELLATION:
Please note that non-attendance at the event does not entitle the registrant to a refund. In the event that a registrant becomes unable to attend following the deadline for cancellation, a substitute attendee may be delegated. Please notify Federated Press of any changes as soon as possible. Federated Press assumes no liability for changes in program content or speakers. A full refund of the attendance fee will be provided upon cancellation in writing received 13 days prior to event date. No refunds will be issued after this date. Please note that a 15% service charge will be held in case of a cancellation.
DISCOUNT:
Federated Press has special team discounts. Groups of 3 or more from the same organization receive 15%. For larger groups please call Sandra Frattolillo at 1-800-363-0722, ext. 223 to get more information.
PAYMENT:
Payment must be received seven days prior to the event date.