12 May 2017 External T.I. 2017-0683511E5 F - Purpose tests of a dividend or repurchase of share -- summary under Subsection 245(4)

Opco, which has no safe income, avoids s. 55(2.1)(b) by using its cash to purchase most of the common shares held by its parent for cancellation. CRA stated:

[T]he utilization of paragraph 55(3)(a)…in order to replace a dividend not coming out of safe income, could be determined to be offensive.

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Income Tax Act - s. 245(4)
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Node
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d7 import status
Drupal 7 entity type
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Drupal 7 entity ID
453467
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