| Highlights
FEATURE ARTICLE
Income Trusts: Where to Next?
Ron Wilson
The tax policy issues surrounding the debate as to how flow-through entities ("FTEs") and their investors should be taxed have been the focus of much debate during the first half of this year. As Ron Wilson explains, the government's solution may or may not be viable depending on future developments. At the very least, it is a solution which has largely overlooked a number of factors which deserve consideration.
RECENT TRANSACTIONS
Canadian Income Trusts Go After Non-resident Investors
Kevin B. Kelly
A recent offering by Sentry Select Capital Corp. of units which feature a debenture issued by Canadian Income Management Inc. which pays withholding tax-exempt interest to non-resident investors may herald other similarly structured offerings to attract increased non-resident investor participation in income fund investments in Canada.
FINANCE UPDATE
The Much Anticipated Share-For-Share Exchange Rules
Monica Biringer
Based on expressions of current government thinking, it may be that when the share-for-share rules are released, the "outbound rule" addressing Canadian vendors exchanging Canadian corporate shares for those of a foreign acquirer will fall far short of what taxpayers and their advisers may have expected
CRA UPDATE
Eliminating Over-withholding on Payments to Partnerships
David Veneziano
Despite a Technical Interpretation which appears to afford the payer of amounts to a non-Canadian partnership the opportunity to withhold at reduced applicable treaty rates where information as to ultimate ownership is available, has much been accomplished to resolve current over-withholding in cases where treaty entitlement is clearly established?
CURRENT CASES
Tax Reporting Not Defined by Financial Accounting
R. Ian Crosbie
A recent Tax Court decision permits the taxpayer a cash-basis deduction for interest and finds that paragraph 20(1)(c) of the Income Tax Act requires consistent tax filings and nothing more
U.K. RECENT DEVELOPMENTS
U.K. Budget Promotes Property Investment Into the United Kingdom
Stephen M. Edge
The U.K. budget signals the adoption of a REIT regime for U.K. property corporations which will balance the playing field for investors between offshore and onshore U.K. investment vehicles
U.S. RECENT DEVELOPMENTS
New United States Regulations Concerning Statutory Mergers and Consolidations
Willard B. Taylor
New U.S. regulations clarify that mergers under foreign law may qualify as tax-free statutory mergers for purposes of the Internal Revenue Code. The result is to build additional flexibility in terms of consideration which may be received on such transactions without impairing their tax-exempt status.
EU RECENT DEVELOPMENTS
EU Watchwords: Prohibited State Aid and Freedom of Establishment
Carola van den Bruinhorst
Several developments - for example a decision that German rules taxing branches infringe freedom of establishment and that the U.K. imputation is not discriminatory - have occupied the European Court of Justice over the past few months.
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Board
Elinore J. Richardson
Editor-in-Chief
Borden Ladner Gervais LLP
Toronto
Hugh Berwick
Alcan Inc.
Montreal
Monica Biringer
Osler, Hoskin & Harcourt LLP
Toronto
Stephen W. Bowman
Bennett Jones LLP
Toronto
Peter J. Connors
Orrick Herrington & Sutcliffe LLP
New York
R. Ian Crosbie
Davies Ward Phillips & Vineberg LLP
Toronto
Stephen M. Edge
Slaughter and May
London
David W. Glicksman
Stikeman Elliott LLP
Toronto
Mitchell Sherman
Goodmans LLP
Toronto
Paul K. Tamaki
Blake, Cassels & Graydon LLP
Toronto
Willard B. Taylor
Sullivan & Cromwell LLP
New York
Stephanie A. Wong
Borden Ladner Gervais LLP
Toronto |