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Goodmans Publications

Restructuring Debt of a Resource Company

February-3-2021

Lawyer Alan Bowman, Aida Kimiagar
Area Tax

Summary

Excerpt from “Restructuring Debt of a Resource Company”, XIV(3) Resource Journal (Federated Press) 2-6 (2020), Alan Bowman and Aida Kimiagar

Distressed corporations often resort to restructuring their debts into shares of the corporation. However, in situations where those shares constitute taxable Canadian property, these debt exchanges can have negative Canadian tax implications for non-resident creditors. Alan Bowman and Aida Kimiagar discuss these negative tax consequences and suggest a potential solution.

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