Student Paper Award

The Canadian Tax Foundation-Jean Potvin Award for Quebec 2007-8

Mark R. Rintoul

The Canadian Tax Foundation is pleased to announce that Mark R. Rintoul is the winner of the Canadian Tax Foundation-Jean Potvin Award for the best Quebec student paper of 2007-8 dealing with an aspect of Canadian taxation. Mr. Rintoul’s paper, “Spectrum of Sameness: The Tests of Loss-Streaming Rules,” was submitted as his thesis for the Master of Laws (Taxation) program at HEC Montréal/University of Montréal. He also holds an MBA from HEC Montréal and a BA in economics from McGill University. He is a senior manager with Buchanan Barry LLP’s Tax and Valuation Service in Calgary. Following is an abstract of Mr. Rintoul’s paper.


Generally referred to as the “loss-streaming rules,” subsection 111(5) of the Income Tax Act provides specific instances in which a corporation’s non-capital losses incurred before an acquisition of corporate control may be deducted from the corporation’s income generated after the acquisition of control (and vice versa). Because the provision was not conceived to allow the transfer of losses between parties, the carefully crafted and restrictive language of subsection 111(5) reflects Parliament’s effort to limit loss trading. The narrowness of the subsection’s relief is largely established by two conditions that permit the deduction of losses only where the losses’ origin is ostensibly the same as the origin of the profit against which the losses are to be offset. These conditions have come to be known as the “same business” and “similar services or properties” tests.

(May 2009)