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Highlights
FEATURE ARTICLE
Information Reporting a Priority of the Canadian and U.S.
Tax Administrations
Claire Kennedy, Donald L. Korb
Heightened disclosure requirements in various jurisdictions seem to be the order of the day. The Indian tax administration has recently indicated that it will require taxpayers to produce due diligence reports prepared in the context of acquisition transactions to the revenue authorities. Both Canada and the United States have increased the scope of their scrutiny of accountants' working papers in the course of audit activity.
FINANCE UPDATE
Section 143.3 Limitation on Expenditures Made
for the Issuance of Shares
Paul K. Tamaki
Parent corporations involved in tripartite acquisition transactions will receive tax basis in their subsidiary's shares issued to them as consideration for the issue of their shares to a target shareholder (page 1890); a document released by the CRA in relation to the application of the SIFT rules where public entities own interests in partnerships which are not "excluded subsidiary entities", suggests that the CRA will interpret those rules reasonably (page 1892)
FINANCE UPDATE
Application of the SIFT Rules to Private
Partnerships
Mitchell Sherman
Parent corporations involved in tripartite acquisition transactions will receive tax basis in their subsidiary's shares issued to them as consideration for the issue of their shares to a target shareholder (page 1890); a document released by the CRA in relation to the application of the SIFT rules where public entities own interests in partnerships which are not "excluded subsidiary entities", suggests that the CRA will interpret those rules reasonably (page 1892)
CRA UPDATE
Canada Revenue Agency Rules Positively on a Second Tier
Financing Structure
Chris Van Loan
The CRA rules positively on a second tier financing structure – significant for multinational foreign parent corporations and their Canadian subsidiaries (page 1896); a CRA position confirms that accounting adjustments can be ignored in computing corporate retained earnings available to support a deduction for interest on borrowings to support payment of dividends (page 1899)
CRA UPDATE
Interest Deductibility and the Calculation of the
Retained Earnings Amount
Daniel Lang
The CRA rules positively on a second tier financing structure – significant for multinational foreign parent corporations and their Canadian subsidiaries (page 1896); a CRA position confirms that accounting adjustments can be ignored in computing corporate retained earnings available to support a deduction for interest on borrowings to support payment of dividends (page 1899)
CURRENT CASES
Coupon Stripping to Avoid Withholding Tax Is Not
Abusive
R. Ian Crosbie, Raj Juneja
The Lehigh Cement case would appear to have raised the standard to be met by the Crown in establishing abusive tax planning (page 1902); the current uncertainty as to what constitutes a series for purposes of the GAAR and other provisions of the tax legislation will be the focus of arguments before the Supreme Court of Canada in Copthorne Holdings (page 1906); the Federal Court of Appeal's findings on when a judge's conduct may give rise to a reasonable apprehension of bias, gives rise to a new trial (page 1912); the GlaxoSmithKline saga continues with a decision of the Federal Court of Appeal and request by the Crown for leave to appeal (page 1917)
CURRENT CASES
Copthorne: More on the Concept of Series in Canadian
Tax Law
Marc Richardson Arnould
The Lehigh Cement case would appear to have raised the standard to be met by the Crown in establishing abusive tax planning (page 1902); the current uncertainty as to what constitutes a series for purposes of the GAAR and other provisions of the tax legislation will be the focus of arguments before the Supreme Court of Canada in Copthorne Holdings (page 1906); the Federal Court of Appeal's findings on when a judge's conduct may give rise to a reasonable apprehension of bias, gives rise to a new trial (page 1912); the GlaxoSmithKline saga continues with a decision of the Federal Court of Appeal and request by the Crown for leave to appeal (page 1917)
CURRENT CASES
Federal Court of Appeal Sets Aside the Decision in Heron
Bay and Orders a New Trial
David W. Glicksman, Manjit Singh
The Lehigh Cement case would appear to have raised the standard to be met by the Crown in establishing abusive tax planning (page 1902); the current uncertainty as to what constitutes a series for purposes of the GAAR and other provisions of the tax legislation will be the focus of arguments before the Supreme Court of Canada in Copthorne Holdings (page 1906); the Federal Court of Appeal's findings on when a judge's conduct may give rise to a reasonable apprehension of bias, gives rise to a new trial (page 1912); the GlaxoSmithKline saga continues with a decision of the Federal Court of Appeal and request by the Crown for leave to appeal (page 1917)
CURRENT CASES
Crown Applies for Leave to Appeal GlaxoSmithKline to
the Supreme Court of Canada
Elinore J. Richardson
The Lehigh Cement case would appear to have raised the standard to be met by the Crown in establishing abusive tax planning (page 1902); the current uncertainty as to what constitutes a series for purposes of the GAAR and other provisions of the tax legislation will be the focus of arguments before the Supreme Court of Canada in Copthorne Holdings (page 1906); the Federal Court of Appeal's findings on when a judge's conduct may give rise to a reasonable apprehension of bias, gives rise to a new trial (page 1912); the GlaxoSmithKline saga continues with a decision of the Federal Court of Appeal and request by the Crown for leave to appeal (page 1917)
U.K. RECENT DEVELOPMENTS
Coalition at a Tricky Crossroads
Stephen M. Edge, Gareth Miles
The U.K. coalition government faces a number of obstacles in responding to expressed concerns by business as to potential tax reforms (page 1919)
U.S. RECENT DEVELOPMENTS
U.S. Congress Enacts Foreign Tax Revenue Raisers
Willard B. Taylor
New legislation will affect the manner in which both cross-border investment and follow-on transactions involving intra-company financing and other restructurings will be done in the future (page 1923)
EU RECENT DEVELOPMENTS
Corporate Exit Taxes in an EU Law Context
Carola van den Bruinhorst, Sander Hekscher
A referral by the Amsterdam Court of Appeal to the ECJ has again raised the issue of whether and in what circumstances the levy of exit taxes by a Member State may be considered to infringe the EU right of freedom of establishment (page 1928)
| Board
Elinore J. Richardson
Editor-in-Chief
Borden Ladner Gervais LLP
Toronto
Monica Biringer
Osler, Hoskin & Harcourt LLP
Toronto
Stephen W. Bowman
Bennett Jones LLP
Toronto
Carola van den Bruinhorst
Loyens & Kieff
Amsterdam
R. Ian Crosbie
Davies Ward Phillips & Vineberg LLP
Toronto
Stephen M. Edge
Slaughter and May
London
David W. Glicksman
Wilson & Partners LLP
Toronto
Daniel Lang
Borden Ladner Gervais LLP
Toronto
Mitchell Sherman
Goodmans LLP
Toronto
Paul K. Tamaki
Blake, Cassels & Graydon LLP
Toronto
Willard B. Taylor
Sullivan & Cromwell LLP
New York
Jonathan W. Willson
Stikeman Elliott LLP
Toronto |