Vol. 148, No. 1 — January 1, 2014

Registration SI/2014-1 January 1, 2014


BlackBerry Limited Income Tax Remission Order

P.C. 2013-1404 December 12, 2013

His Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of Finance, pursuant to subsection 23(2) (see footnote a) of the Financial Administration Act (see footnote b), makes the annexed BlackBerry Limited Income Tax Remission Order.




1. (1) The following definitions apply in this Order.

« Loi »

“Act” means the Income Tax Act.

« ministre »

“Minister” means the Minister of National Revenue.

Application of meanings in Act

(2) Unless the context otherwise requires, words and expressions used in this Order have the same meaning as in the Act.



2. Subject to section 3, remission is granted to BlackBerry Limited, in respect of tax paid for its 2009 to 2012 taxation years, of an amount equal to the amount by which




3. Remission is granted under section 2 on condition that BlackBerry Limited


(This note is not part of the Order.)


To make the BlackBerry Limited Income Tax Remission Order.


The Order makes a remission to BlackBerry Limited of taxes paid for the 2009 to 2012 taxation years. In effect, it enables the company to have undertaken a transaction to obtain early a portion of a refund that otherwise would have been received after its March 1, 2014, year-end without reducing the total amount of that refund.


A transaction entered into by BlackBerry Limited resulted in it having a taxation year ending on November 3, 2013. This taxation year end enabled the company to apply the non-capital losses realized up to that date against taxable income earned in a prior year and obtain a refund of income tax paid for that prior year. If not for the transaction, its taxation year would have ended on March 1, 2014.

As a result of the transaction, BlackBerry Limited lost the ability it would otherwise have had under the Income Tax Act to apply non-capital losses and investment tax credits, that might be realized during the period from November 4, 2013, to March 1, 2014, against its taxable income and income tax payable, respectively, for its 2011 taxation year. BlackBerry Limited similarly lost the ability to apply, against its taxable income and income tax payable for the 2012 taxation year, non-capital losses and investment tax credits that might be realized in its second taxation year ending after November 3, 2013.

As a result of the inability to carry back these non-capital losses to its 2011 and 2012 taxation years, Blackberry Limited lost the ability to apply all or a portion of investment tax credits that it realized for its 2011 and 2012 taxation years against tax payable for its 2009 and subsequent taxation years.

The Order effectively preserves the carry-back abilities that would have existed had the company not undertaken the transaction to cause an early taxation year-end on November 3, 2013.

Financial implications

The Order in effect allows BlackBerry Limited to have undertaken a transaction to obtain an early refund of tax associated with the non-capital losses accrued over the first eight months of its taxation year beginning March 3, 2013, without losing the ability to carry back (to the extent that otherwise would have been permitted) any losses incurred and investment tax credits earned over the following four months. The transaction has enabled the company to obtain a portion of its anticipated tax refund earlier than normal. However, the Order will not result in the company receiving a total amount of tax refunds in excess of the amount that would have been obtained had the company not undertaken the transaction but instead had waited and claimed a refund following its normal taxation year end on March 1, 2014.

The Order will not have any impact on the amount of government tax revenues.


The Canada Revenue Agency was consulted in relation to the proposal.

Departmental contact

Tobias Witteveen
Tax Legislation Division
Department of Finance
L’Esplanade Laurier
140 O’Connor Street
Ottawa, Ontario
K1A 0G5
Telephone: 613-992-4859