Cases
Scandia Plate Ltd. v. The Queen, 83 DTC 5009, [1982] CTC 431 (FCTD)
Ownership of the shares of an alleged Canadian-controlled private corporation was not acquired by a Canadian resident from a Swedish company...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | 100 | |
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation | 28 |
Administrative Policy
31 January 2018 External T.I. 2016-0676431E5 - foreign tax credit on employees profit sharing
Are foreign taxes allocated from an employees profit sharing plan to an individual on a T4PS limited to 15% for foreign tax credit purposes? CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 144 - Subsection 144(8.1) - Paragraph 144(8.1)(b) | 15% limitation on FTC credit | 93 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(11) | no s. 20(11) deduction for foreign taxes respecting EPSP income allocated to beneficiary | 107 |
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(12) | no s. 20(12) deduction to EPSP beneficiary | 108 |
13 June 2017 STEP Roundtable Q. 8, 2017-0693381C6 - Single-member disregarded U.S. LLC
A single-member disregarded U.S. limited liability company (“SMLLC”), whose member is a resident of Canada, is factually resident in Canada...
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|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 26 | no relief under Art. 26(1) of US Treaty re LLC with U.S.-source income and single Canadian-resident member | 145 |
| Tax Topics - Treaties - Income Tax Conventions - Article 29 | single member LLC with dual resident member could elect to be C-Corp and S-Corp, and then consider applying for relief under Art. 29(5) | 158 |
20 June 2016 External T.I. 2016-0648481E5 F - Small business deduction and GRIP
CRA accepted that a corporation may choose not to take the small business deduction so as to increase its general rate income pool account,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Adjusted Taxable Income | CCPCs can choose to forego the small business deduction so as to maximize their GRIP | 118 |
26 March 2012 External T.I. 2012-0440441E5 F - Déduction accordée aux petites entreprises
General and superficial response to question as to when the small business deduction is available.
3 March 2011 External T.I. 2010-0380751E5 F - Déduction accordée aux petites entreprises
A corporation, that carries manages a convenience store under a franchise agreement, is not responsible for rent, inventory purchases and...
92 C.R. - Q.50
A corporation that is a trader in securities is entitled to the small business deduction.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Income of the Corporation for the Year From an Active Business | 24 |
85 C.R. - Q.56
Where a firm performs engineering activities in respect of a project both at its office in Canada and the foreign project site, only income...
IT-73R6 "The Small Business Deduction" 26 March 2002
5 ...In examining the ordinary dictionary meaning of these words, "incident to" generally includes anything that is connected with or related to...
Articles
Perry Truster, "Expanding into the U.S", Tax for The Owner-Manager, Vol. 2, No. 1, January 2002
Ancillary business activities in the U.S., although not carried on through a permanent establishment there, will not give rise to income eligible...
Durnford, "The Distinction Between Income from Business and Income from Property, and the Concept of Carrying on Business", 1991 Canadian Tax Journal, p. 1131.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(4) - Canadian Investment Income | 0 |
Paragraph 125(1)(a)
Subparagraph 125(1)(a)(i)
Clause 125(1)(a)(i)(B)
Administrative Policy
26 January 2023 External T.I. 2021-0887661E5 - Small Business Deduction - Related
CRA indicated that where two CCPCs, wholly-owned by Mr. or Mrs. X, did not provide services or property, directly or indirectly, in any manner...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Corporate Income - Paragraph (a) - Subparagraph (a)(i) | 2 related but not associated CCPCs do not have their SBD ground under s. 125(1)(a)(i)(B) if they have no business dealings with each other | 139 |
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(5.1) - Paragraph 125(5.1)(a) | non-associated but related corporations not required to aggregate their taxable capital | 89 |
23 February 2021 External T.I. 2018-0769891E5 F - 125(7) "revenu de société déterminé"
The definition "specified corporate income" is used in the rule indicating that the portion of the income of a Canadian-controlled private...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) | presumption that two 50% shareholders act together to control the corporation | 147 |
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Corporate Income - Paragraph (a) - Subparagraph (a)(i) - Clause (a)(i)(B) - Subclause (a)(i)(B)(I) | services income from multiple private corporations referenced in s. (a)(i)(A) can be bad income for purposes of the substantially all test | 477 |
7 February 2018 External T.I. 2017-0706401E5 - Specified corporate income, streaming of expenses
Where a corporation earns income eligible for the “small business deduction” (SBD) and income that is ineligible due to the “specified...
20 April 2017 External T.I. 2016-0679721E5 - The small business deduction
SellCo A and SellCo B sell all of their fishing catch to BuyCo (also a CCPC), although BuyCo purchases the majority of its fish from unrelated...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 125 - Subsection 125(7) - Specified Corporate Income | sales of product to private corporation in which brother or father of the vendor shareholder has a controlling interest | 316 |