The author reviews the proposed amendments to the foreign affiliate rules in the Income Tax Act (Canada) and Regulations that were released by the Department of Finance on August 27, 2010. There are practical compliance difficulties with the proposed grind to exempt surplus and the proposed tax...

When a Canadian parent corporation guarantees a debt obligation incurred by its foreign affiliate subsidiary, the issue arises whether the Canadian transfer pricing rules require the Canadian parent to receive an arm's length guarantee fee from the foreign affiliate. Proposed subsection 247(7.1)...

The new upstream loan rules in subsections 90(6) through (15) of the Income Tax Act (Canada) have now been in force for several years. Yet there remain several anomalies in the application of these rules, particularly where the Canadian parent company sells or restructures the foreign affiliate...

North American gasoline taxes are much lower than in all other OECD countries. The author argues that Canada should substantially increase its gasoline taxes to achieve environmental tax policy objectives. The article outlines the economic efficiency, fairness, and transformational rationales...

Subsections 92(4) and (5) of the Income Tax Act (Canada) address the situation where shares of a foreign affiliate are held by a partnership of which a corporation resident in Canada is a partner. If the foreign affiliate has previously paid a pre-acquisition surplus dividend to the partnership,...

Over the last decade, metal streams have evolved as a popular and tax-effective source of financing for Canadian mining companies. This article considers the principal features of the typical metal stream transaction that are relevant from a tax perspective. The focus is on the common situation...

This article reviews the new Canadian foreign affiliate reorganization rules in the Income Tax Act (Canada) enacted on June 26, 2013, and considers the main transitional elections available to taxpayers (until June 2014) for retroactive application of these new rules. The focus is on the foreign...