Section 123.3

See Also

DAC Investment Holdings Inc. v. The King, 2024 TCC 63

With a view to its imminent disposition of the shares of a subsidiary, the taxpayer continued to the British Virgin Islands, with the result that...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) no abuse in avoiding CCPC status by continuing to BVI 406
Tax Topics - Income Tax Act - Section 123.4 - Subsection 123.4(1) - Full Rate Taxable Income - Paragraph (b) - Subparagraph (b)(iii) rate reduction for investment income was intended to apply to non-CCPCs since they did not enjoy refundable tax 253
Tax Topics - Income Tax Act - Section 250 - Subsection 250(5.1) rationale of s. 250(5.1) is to equate the place of continuance of a corporation with its place of incorporation 205

Gladwin Realty Corporation v. The Queen, 2019 TCC 62, aff'd 2020 FCA 142

Hogan J found that transactions - in which the taxpayer recognized two capital gains in connection with the sale of a property to a third party...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) using the CDA and negative ACB rules to generate “over-integration” was abusive 594
Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) contrary to purpose of the capital dividend rules to fully exempt a capital gains distribution 300
Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.1) purpose of s. 40(3.1) is to trigger gain on extraction of excess funds by passive partners 330

Administrative Policy

7 October 2021 APFF Roundtable Q. 4, 2021-0900921C6 F - Mind and management et statut de SPCC

A corporation which will generate investment income is incorporated outside Canada (and, thus, is not a Canadian corporation, as per s. 89(1) and,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) using a foreign corporation with Canadian CMC to produce a lower tax rate on investment income could be GAARable 149

Articles

Allan Lanthier, "The latest Canadian tax scam has a Caribbean flavour", Canadian Accountant, January 21, 2022

Additional 23.67% tax rate on CCPCs’ taxable capital gains

  • With the additional refundable tax under s. 123.3 (introduced in 1995 at a rate of...

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Anthony Strawson, Timothy P. Kirby, "Vendor Planning for Private Corporations: Select Issues", 2017 Conference Report, (Canadian Tax Foundation), 11:1-28

Continuance of a CCPC to a foreign jurisdiction may create better protection for assets (p. 11:16)

[A] corporation that is incorporated outside...

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