Income Tax Severed Letters - 2018-06-20

Ruling

2017 Ruling 2016-0679281R3 - subsections 84(4.1) and 86(1)

Unedited CRA Tags
Subsections 84(4.1) and 86(1)
pubco spin-off of a U.S. business using s. 86
change of common shares into multiple-voting common shares not a disposition

Principal Issues: Whether subsection 84(4.1) applies to a reduction of the aggregate PUC of the Class A Common Shares on the Reorganization?

Position: No.

Reasons: Complies with law and CRA administrative positions.

Technical Interpretation - External

22 May 2018 External T.I. 2017-0735481E5 - 248(1) “salary or wages

Unedited CRA Tags
248(1) "salary or wages"; 153(1)(a)

Principal Issues: Whether the CRA considers that the definition of “salary or wages” in subsection 248(1) of the Income Tax Act (the Act) applies to paragraph 153(1)(a) of the Act, which requires withholding on “salary, wages or other remuneration”?

Position: Yes.

Reasons: When interpreting “salary, wages or other remuneration” used in paragraph 153(1)(a) of the Act the definition of “salary or wages” in subsection 248(1) of the Act applies.

2 May 2018 External T.I. 2017-0731171E5 - Deductibility of expenses

Unedited CRA Tags
9(1), 18(1)

Principal Issues: Is a taxpayer gaining or producing income from a business when posting monetized videos to social media?

Position: Question of fact.

Reasons: The facts of every situation would need to be analyzed in order to determine if a taxpayer has a source of income.

Technical Interpretation - Internal

21 March 2018 Internal T.I. 2017-0730761I7 - Electronic information slips

Unedited CRA Tags
Regulation 209
financial institutions cannot provide T3s etc. to their clients in electronic form without written or electronic consent of the clients

Principal Issues: Does the Income Tax Regulation 209 allow an Issuer to send the particular information slips electronically without the express consent of the recipient?

Position: No, except for the information returns discussed in Regulation 209(5).

Reasons: Subsection 209(3) requires express consent from the recipient in order to send the slip electronically.

27 February 2018 Internal T.I. 2017-0682631I7 - Subsection 15(2.6) - Series of Loans

Unedited CRA Tags
15(2), 15(2.6)
cross-border cash pool entailed a series of loans and repayments

Principal Issues: Whether the automatic daily cash sweeps that occur as part of a physical cash pooling arrangement should be considered to form part of a "series of loans or other transactions and repayments".

Position: Likely.

Reasons: See below.