Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
If the calculation is by "referance to profits", 1% is the minumum. Where the calculation is "out of profits" & the 144(10) election is made, then the payments must be limited by the level of profits.
whether corp. must withhold under 153(1) of the Act when it pays management and administrative consulting fees to another Canadian corporation (which is a personal service business)
Position:
No, although the personal service business may have to withhold in respect of salary and wages it pays to incorporated employees
Whether paragraph (d) of the definition of "qualified small business corporation share", which requires that the reference in clause (c)(ii)(B) of the definition to 50% be read as 90%, only applies where, during any part of the 24-month period, a parent corporation cannot meet the 50% asset test in paragraph (c) without relying upon the shares and/or indebtedness it holds in a subsidiary corporation.
Position:
Paragraph (d) of the definition will apply during any part of the 24-month period during which the parent corporation does not meet the 90% asset test, although the application of the 90% asset test in respect of the subsidiaries will be of no consequence if the parent corporation meets the 50% asset test of paragraph (c) by reference only to its own active business assets.
Whether land acquired by a taxpayer prior to June 18, 1987 that has been farmed by the taxpayer's grandparent for at least 25 years would qualify as "qualified farm property".
Whether, where paragraph (c) of the definition of "qualified small business corporation share" is modified by paragraph (d) of the definition, the 90% asset test must be met by each subsidiary (i.e., connected corporation) of a subject corporation.
Position:
Although each subsidiary must meet the 90% asset test, the fact that a subsidiary does not meet the test may be of no consequence if the subject corporation can meet the 50% asset test of paragraph (c) without reference to the shares of the subsidiary which do not meet the 90% asset test.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:12
"As long as the amount of the pension arising in the U.S. would have been excluded from taxable income in the U.S. by a U.S. resident recipient,...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Principal Issues:
1. Does a taxpayer need to be a former resident of U.S. before he can qualify for the exempt referred to in paragrah 1 of Article XVIII of the Canada-U.S. Income Tax Convention?
2. What information is needed for a taxpayer who receives a periodic pension from International Monetary Fund to claim the exemption mentioned in 1 above?
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
can an employer reallocate its commitment to fund employee benefits so employees can enjoy a more benficial income tax result? In an employee-pay-all plan, where the employer agrees to pay a set percentage of the premium costs, is it only the employer's contribution which is added to the employee's income?
Position:
Several specific questions addressed all around the issue of how an employer can reallocate a commitment to fund a set percentage of benefit premium costs, as usually found in the collective agreement. Position is that the only way to change the legal obligations of the employer/employees, as found in the collective agreement (or other applicable documentation), is to change the provisions of the collective agreement (or other applicable documentation). No retroactive changes would be accepted by the Department. On the second issue, an employee-pay-all plan does not exist if the employer is obligated to be any portion of the premiums to the plan (that is, "contributions" to the plan). If the employer opts to pay any premiums which the employee is legally obligated to pay himself/herself, then the employer is paying a personal expense of the employee and this is a 6(1)(a) benefit. It is a question of fact whether an employee-pay-all-plan exists.
Whether an allowable business investment loss can be claimed by a director in respect of amounts paid as a result of his section 227.1 liability.
Position:
ABIL cannot be claimed, since the debt, if any, arising from the payment of unremitted source deductions is not considered to have been acquired for the purpose of gaining or producing income from a business or property.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
961824
XXXXXXXXXX M.P. Sarazin
Attention: XXXXXXXXXX
June 19, 1996
Dear Sirs:
Re: Sale of Assets and Payment of a Retiring Allowance
Est-ce que Ministère considère que des actions font partie d'une seule catégorie lorsqu'elles comportent exactement les mêmes caractéristiques, bien qu'elles soient qualifiées comme 2 catégories dans les statuts?
Submitted by narmstrong on Wed, 08/24/2016 - 17:38
“excluded property” expanded to include foreign Opco held by CFA through a partnership
Example A
Canco owns 100% of Forhold, which has a 90% interest in a partnership (P1), whose only assets are 25% of the shares of a foreign...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Principal Issues:
Excluded property status involving partnership structures.
Position:
Depending on equity percentages for paragraphs (a) and (b) of definition of foreign affiliate in subsection 95(1), a non-resident corporation in which shares are held by a partnership could qualify as a foreign affiliate for purposes of excluded property rules.
Whether, where a corporation accumulates significant cash reserves in order to pay bonuses, the cash reserves constitute assets used principally in an active business for purposes of the definition of "qualified small business corporation shares" in subsection 110.6(1).
Position:
The cash reserves may constitute active business assets.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
961979
XXXXXXXXXX Jim Wilson
Attention: XXXXXXXXXX
June 12, 1996
Dear Sirs:
Re: Meaning of "paid or credited" - Part XIII of the Income Tax Act
1)Whether a revived corporation is a continuation of the predecessor corporation?
2)Whether a revived corporation can pay a retiring allowance to its employees based on the years of service both before revival and after revival?
Position:
1)Depends on the corporations Act which governs. In the present case, being an Alberta corporation, revival has a retroactive effect, but would not undo the fact that the corporate assets had been distributed to the shareholders.
2)Since, in the present case, the revival has a retroactive effect and the corporation is the same legal entity, subject to the usual requirements that the retiring allowance be reasonable etc., then the years of service prior to revival may be included in the calculation.
Investment in a business corporation as a qualified investment for an RRSP
Position:
Routine reply on 4900(6) and (12) with update for October 31/95 passage of amendments. Comments on commencement of business activities and referral to IT-364 "Commencement of Business Operations".
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX Tim Kuss 961114
Attention: XXXXXXXXXX
June 4, 1996
Dear Sirs:
Re: International Shipping
Request for Advance Income Tax Ruling
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:18
"Where the duties of a particular office or employment are performed partly in Canada and partly outside of Canada, a reasonable apportionment of...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
5-960162
XXXXXXXXXX M. Séguin
(613) 957-8953
Attention: XXXXXXXXXX
