The Resource Recommended amendments to the upstream loan rules

Recommended amendments to the upstream loan rules

Label
Recommended amendments to the upstream loan rules
Title
Recommended amendments to the upstream loan rules
Creator
Subject
Language
eng
Summary
The upstream loan rules announced on 19 August 2011 and enacted on 26 June 2013 require an analysis of all loans or indebtedness owing to foreign affiliates of a Canadian taxpayer. Taxpayers have now had sufficient opportunity to apply the new provisions to their specific situations, and many have found that there is significant interpretive uncertainty regarding the application of the rules. While some areas of uncertainty have been addressed through administrative announcements by the Canada Revenue Agency, there remain situations where the application of the rules yields results that seem inconsistent with the underlying policy. This article focuses on two aspects of the rules that in our view require amendment: the repayment requirement in paragraph 90(8)(a) and subsection 90(14) of the Income Tax Act, and the reserve mechanism in subsections 90(9), (11), and (12). After reviewing the policy objectives of the rules, certain technical issues with the aspects of the rules identified above, and the limited planning opportunities currently available to mitigate the negative impact of these provisions, the authors suggest potential amendments that should be considered
Citation source
In: Canadian tax journal = Revue fiscale canadienne. - Toronto. - Vol. 63 (2015), no. 1 ; p. 245-267
http://library.link/vocab/creatorName
  • Bradley, I
  • Thompson, M. (Marianne)
  • Buttenham, K.J
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • upstream loan
  • affiliated companies
  • MNE
  • reserves
Label
Recommended amendments to the upstream loan rules
Instantiates
Publication
Label
Recommended amendments to the upstream loan rules
Publication

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      52.37366609999999 4.9336932
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