close
Share with your friends

Canada: Derivative instruments, new clarity for characterization of gains, losses

Canada: Derivative instruments

Taxpayers have greater tax certainty when analyzing the income tax treatment of certain derivative instruments, given a March 2020 decision from the Supreme Court of Canada.

1000

Related content

Concerning the income tax treatment of derivative instruments that involve an underlying capital asset, the Supreme Court of Canada confirmed the relevant framework and specific principles to characterize such gains and losses either as on income account or on capital account. The decision is based on past jurisprudence.

The case is: MacDonald v. The Queen (2020 SCC 6) (13 March 2020)

Read a March 2020 report prepared by the KPMG member firm in Canada

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal