5 November 2013 External T.I. 2013-0501241E5 F - Application of subsection 39(2) -- summary under Subsection 39(2)

Respecting whether s. 39(2) applied on the payment of a previously declared dividend, CRA stated (TaxInterpretations translation):

A dividend, at the moment of declaration, becomes a debt of the corporation which declared it to the shareholder (see in particular the decision of the Supreme Court of Canada in The Custodian v. Blucher [1927] S.C.R. 420, p. 425). Therefore, we are of the view that the foreign exchange gain or loss at the time of the payment of the dividend in this situation relates to a debt and not to a transaction or event in respect of shares of the capital stock of the taxpayer. Subsection 39(2) could therefore apply.

Topics and taglines
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
308714
Words and phrases
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
344646
Extra import data
{
"field_editor_tags": [],
"field_roundtable_subquestion": "",
"field_stub": false,
"field_legacy_header": "<a id=\"2013-0501241E5\"></a><a href=\"/?p=21248\">5 November 2013 T.I. 2013-0501241E5 F</a> [declared dividend as debt]"
}
Workflow properties
Workflow state