Intime tax1/18/2024 ![]() ![]() ![]() Second, if the agreement date was December 31, 2013, Samson would have been a shareholder and met the requirements of subparagraph 50(1)(b)(iii). First, the trial judge concluded that the intention behind the tax arrangement was clearly for Samson to elect under subparagraph 50(1)(b)(iii). The trial judge reiterated the principles set out in AES and then applied the two-part test from Jean Coutu. The trial judge did not accept that the party’s intention was always to sign in April 2014, but he did conclude that Major erred in choosing the date. Major noted the error and requested a declaratory judgement from Quebec’s Superior Court to change the date from December 11, 2013, to April 4, 2014, because April 4, 2014, was the date the documents were actually signed. The shares were sold on Decemtherefore, Samson could not make an election on December 31, 2013, as he no longer owned the shares at that point in time. ![]() However, Samson’s personal fiscal yearend was December 31. Bourgade’s election succeeded because its fiscal yearend was on November 30. However, Major’s tax plan had a fatal error, as the election of subparagraph 50(1)(b)(iii) of the ITA must be exercised at the end of the taxpayer’s fiscal year. Samson and Bourgade were both instructed to make the election to be deemed to have disposed of CRP shares for nil proceeds and then immediately reacquire the shares at nil cost. The tax plan included an election under subparagraph 50(1)(b)(iii) of the Income Tax Act (“ITA”) on November 30, 2013. Specifically, the intention was for Bourgade to benefit from the business investment loss on CRP’s shares while Résidences du Collège CRP (2014) Inc. Major developed a tax plan with the goal of utilizing all of CRP’s losses through Samson’s other companies. Samson hired France Major (“Major”) as a tax specialist to determine the optimal tax planning strategy for Samson’s various companies. To summarize, CRP suffered significant losses and Bourgade generated large taxable capital gains. Bourgade sold 13 buildings and used the funds generated from those sales to financially assist CRP. Some of the real estate projects were profitable while others resulted in significant losses.ĬRP heavily financed a building renovation project that encountered several obstacles, resulting in significant losses that led to CRP placing itself under the protection of the Companies’ Creditors Arrangement. Jean Inc (“Bourgade”) who invested in real estate projects through various companies. Samson is a developer and a shareholder of Résidences du Collège Inc. Therefore, regardless of whether equity or civil law is applied to the Samson CA decision, the conclusion could possibly be identical. In obiter, Justice Wagner noted that equity and civil law would arrive at the same result in the Fairmont decision. While the decision is based on Quebec’s civil law, it is still relevant to the rest of Canada. Samson summarizes the principles established in previous decisions such as AES, Jean Coutu and Fairmont and applies the test developed in the Jean Coutu decision. The Samson CA decision is one of relatively few recent appellate-level decisions to allow rectification of a contract. Samson( Samson CA), permitting the rectification of a tax contract under Quebec civil law. On February 24, 2023, the Quebec Court of Appeal rendered a decision in the case of Agence du Revenu du Québec c. The shares of Pentagon Rubber are trading at a GMP of ₹28 in the grey market, as per IPO Watch.Ĭonsidering the current GMP, the shares of Pentagon Rubber are expected to list at ₹98 apiece, a premium of 40% to the issue price.This article was prepared with the assistance of summer law student Brooke Healey.ĭocumenting your intentions in a tax plan is crucial if you ever pursue rectification as an equitable remedy, as illustrated by a recent decision from the Quebec Court of Appeal. Pentagon Rubber IPO GMP today or grey market premium today is ₹28. Pentagon Rubber shares will be listed on July 10 at NSE Emerge platform.īeeline Capital Advisors Pvt Ltd is the book-running lead manager to the issue, and Link Intime India Pvt Ltd is the registrar to the issue.Īlso Read: Synoptics Technologies IPO: SME issue opens tomorrow. The company will fix the basis of allotment on July 5 and initiate refunds on July 6, while shares will be credited on July 7. The Indian market is closed on June 29 for a public holiday. The SME IPO opened on June 26 and will close on June 30. Mohali-headquartered Pentagon Rubber, an engineering components company, has set a price band of ₹65-70 per share for its IPO, comprising an issue of 23.10 lakh equity shares of ₹10 each. Also Read: ideaForge IPO: What GMP signals after strong response by investors? ![]()
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |