Government of Canada Announces Technical Changes to the Income Tax Treatment of Gains and Losses on Debt Denominated in a Foreign Currency
The following News Release or Speech has just been posted on the Finance Canada Site
The Honourable Jim Flaherty, Minister of Finance, today proposed technical changes to extend the application of certain income tax rules that apply to capital gains and losses of a corporation on an acquisition of control to also apply to capital gains and losses on debt denominated in a foreign currency.
Under existing tax rules in the Income Tax Act (or Act), a corporation that undergoes an acquisition of control (for example, when another taxpayer buys all of its shares) is required to recognize, for income tax purposes, all of its accrued capital losses on property that the corporation owns at that time. Those newly-realized capital losses, together with the corporation’s other capital losses, cannot be used after the acquisition of control. The corporation can, however, elect to realize any accrued capital gains on other property that the corporation owns, allowing it to use some or all of its capital losses to offset those capital gains.
• Accountant •
Bookkeeper •
Income Tax Preparer •
Systems Consultant •
Blogger •
HART-Empire Network •
Canadian •
Earthling •
Husband and Pet Owner •
Brilliant & Amusing •
SUV probably bigger gas guzzler than my beater Lumina - but just before...
