Presentation Material - McCarthy Tétrault

TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................ 1
Pipeline Planning .................................................................................................................. 1
Subsection 164(6) Capital Loss Planning............................................................................ 2
Eligible Dividend Designations Following Budget 2012 ..................................................... 2
PIPELINE PLANNING ................................................................................................................ 3
Background – Post-Mortem Tax Planning ........................................................................... 3
How and When Capital Loss Carry-Back Planning and Pipeline Planning are Used ....... 4
CRA’s Position Regarding Pipelines ................................................................................... 5
Provisions and Scheme of the Act Relevant to Pipelines .................................................. 8
Recent Jurisprudence ........................................................................................................ 10
McClarty Family Trust ......................................................................................................... 10
MacDonald 11
The Facts 12
Comparables ....................................................................................................................... 13
The Decision – Subsection 84(2) ....................................................................................... 14
The Decision – GAAR ......................................................................................................... 16
Relevance of the Decision .................................................................................................. 18
Practical Advice Regarding Pipelines in Light of CRA’s Position ................................... 18
SUBSECTION 164(6) CAPITAL LOSS CARRY-BACK PLANNING ........................................ 19
Background ......................................................................................................................... 19
Subsections 40(3.6) and 40(3.61) ....................................................................................... 20
ELIGIBLE DIVIDEND DESIGNATIONS FOLLOWING BUDGET 2012 .................................... 26
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