The following are my notes on an update from Angelo Nikolakakis given at an OBA taxation law presentation on September 22, 2020 (“Advising your clients amidst financial uncertainty: Summer 2020 tax developments”)
For the paper, see ~\Knowledge\Seminar materials\2020 09 22 OBA summer update
No draft leg’n because of COVID. Joint Cee focus has shifted.
We have been working with Finance and CRA re COVID measures, especially CEWS, filing and payment deadline, time limit extensions and CRA guidance on int’l issues. 25-30 people.
CRA has Q&A on its website, which we contributed to.
On int’l issues, residence of corporation is mind and management and where that is exercised. But int’l travel restrictions. CRA: Admin leniency or perspective: no temporary switches because of temporary interruptions eg re where meetings occur. But no extension past Sep 30? CRA at panel this morning: We will reconsider this statement.
Pangea, 2020 FCA 21. Committee submitted re this. Payment to non-resident to induce to tender shares. Court held that 56.4 applied. Consternation. Debt restructurings. Creditors induced to participate depending on timing and terms of tendering. Interest – no Pr XIII tax. But 56.4? Yes, Part XIII will apply. Just engaging with Finance now.
GREs and cross-border surplus stripping. Adverse consequences for GREs in post-mortem restructuring -> double tax. Comfort letter issued to joint committee for dissemination. Latter is new process, to help get info out there.
Dec meetings with Finance, CRA audit and CRA appeals committee. In connection with CTF annual meeting. CRA appeals Cee is new. It’s about how appeals process is working.
