The Meaning of “Control”, “Arms’ Length” and “Related” in the Income Tax Act

This webinar follows and expands on an earlier webinar entitled “Association Rules in the Income Tax Act: Scope and Implications” which aired February 4, 2020.  

Whether two persons are related, or whether one person is viewed as controlling another can trigger a number of special rules mostly geared toward limiting tax benefits otherwise available to private entities.  There are also situations that require parties to transact as though they were at arms’ length and deeming rules to ensure that result. These are relationships that can catch practitioners unaware if they are not familiar with all the ways that private corporations (Canadian-Controlled Private Corporations) are evaluated vis-à-vis the way they transact within a corporate group.

Join Vitaly Timokhov of TaxChambers LLP for a thorough analysis of the various forms of control, the concept of “arm’s length”, and the definition of “related” for income tax purposes. The fundamentals of these concepts are built up through the complex legislative provisions and exceptions, as well as being usefully illustrated by relevant CRA rulings and Tax Court cases.  Vitaly will also explore the definition of “connected” and its relevance.  This webinar is a must for anyone who services private corporate groups.

 

More specifically, this webinar will cover:

 

  • Transactions between non-arm’s length taxpayers: fundamentals in section 69
  • The statutory definition of arm’s length in section 251 – when are parties dealing at arm’s length.
  • When taxpayers are related and why it matters?
  • Control: what it means.
  • De jure control v. de facto control.
  • Control, directly or indirectly, in any manner
  • Unrelated parties acting in concert: factual determination.
  • Part IV tax: tax on assessable dividend received by a private corporation
  • Connected corporations for the purposes of Part IV tax.

Target Audience

This webinar will be of most interest to tax practitioners & accountants, practicing independently or in small to medium sized firms, with the focus on tax planning and compliance services for small to mid-sized privately owned enterprises and private clients holding private corporations though trusts and estates.

Professional Development Credits

Wolters Kluwer Canadian professional development programs are designed to meet the continuing education requirements of a variety of professional associations. These requirements do vary by association and region. Please consult your provincial association to ensure this webinar meets the continuing professional development standards for your specific situation.

Registrations for each Live Webinar are available until the start of each program. We reserve the right to substitute speakers in the case of instructor illness. In the event that we must cancel a Live Webinar, all registrants will be notified immediately and given the opportunity to either transfer their registration to another Live Webinar or a Recorded Webinar or obtain a refund. For all Live Webinars that are recorded, participants will have access to the recording for three months following the Live Webinar. Partial credit will not be awarded for attendees that are not present for the entirety of the Live Webinar. Credit will not be awarded if an attendee does not answer all of the polling questions (where applicable). Additional credit will not be awarded due to the instructor presenting over the allotted time.

This Webinar Includes:

  • 30 days to review the webinar recording
  • Print version of the presentation slides

This webinar is being presented by Vitaly Timokhov, JD, LLM (Taxation, NYU), a Partner with TaxChambers LLP:

 

Vitaly Timokhov

 

Vitaly specializes in providing sophisticated tax advice. He practises exclusively in the area of Canadian federal income taxation and tax planning, with an emphasis on international and domestic reorganizations, mergers and acquisitions, and personal tax planning for Canadian and foreign-based corporations and individuals. In particular, Vitaly has experience advising clients on tax-effective domestic and cross-border financing, the taxation of U.S. citizens and green card holders in Canada, and the taxation of trusts and estates. He has also taught international taxation as an adjunct professor at Osgoode Hall Law School.

Vitaly attended Queen’s University Faculty of Law where he was granted a Newton Rowell Scholarship and received a National Tax Award. After articling at a leading Canadian law firm, he studied taxation as a Gerald Wallace Scholar at New York University School of Law where he earned his LL.M. and served as an editor of the NYU Journal of International Law and Politics.

A prolific publisher, Vitaly has written more than 20 articles on Canadian and international taxation and corporate and commercial law. He is also the principal author and Canadian editor of the Tax Advisor’s Guide to the Canada-U.S. Tax Treaty – a leading treatise on international taxation. Vitaly is a frequent speaker at conferences and workshops, and is actively involved in the International Law Section of the American Bar Association.

Education:
New York University School of Law, LL.M., 2002

Queen’s University, LL.B., 1999