Principal Issues:
The proposed transaction involves Canadian resident employees of a Canadian corporation becoming members of a foreign pension plan. All pension benefits to be provided to the Canadian resident employees will only be funded with the foreign pension plan's surplus. Will the proposed transaction constitute a retirement compensation arrangement?
Position: No.
Reasons:
The employer does not have an absolute right to the actuarial surplus, therefore, no employer contributions will be considered to be made to the foreign plan and there will not be a residents' contribution made in accordance with subsection 207.6(5.1). Therefore, the arrangement will not be a residents' arrangement in accordance with subsection 207.6(5) and the proposed transactions will not be subject to Part XI.3 tax.
Principal Issues:
The trustees of the subject estate are directed by the will to make gifts to specified charities in specified amounts. The will gives the trustees a choice as to how the gifts may be completed. One of the permitted methods for satisfying the bequests involves steps that may negate the transfers being viewed as gifts at law. The trustees ask whether the gifts would be viewed as gifts by will within the meaning of subsection 118.1(5) and 118.1(15) if that method is not used.
Position: The gifts are gifts by will within the meaning of subsection 118.1(5).
Reasons:
The terms of the will clearly specify the following: the identity of the recipients, the quantum of the gifts, that the trustees are required to make the gifts, that the recipients of the gifts are qualified donees, and that the estate will be able to complete the gifts after payment of its debts.
Principal Issues: 1. Whether an active solar system is eligible for inclusion in Class 43.1 2.Whether a cogeneration system installed in a greenhouse is eligible for inclusion in Class 43.1
Position: 1. No. 2. Yes.
Reasons: 1. The purpose of the active solar system is to meet space heating needs of a greenhouse. Class 43.1 states that solar heat energy captured by active solar systems be used directly in industrial process. CCRA does not consider greenhouse space heating, or space heating in general, to be an industrial process. Consequently, the active solar system installed by the Company does not qualify for Class 43.1.
2. Each of the four micro-turbine units and the eligible service connections can be included in Class 43.1 by virtue of meeting the requirements of paragraphs (a), (b), and (c) of Class 43.1.
Principal Issues: Do shares of a single purpose corporation qualify as a "principal residence" for purposes of section 54 of the Act?
Position: No.
Reasons: The shares of a single purpose corporation would not be considered shares of a co-operative housing corporation and consequently would not qualify as a principal residence for purposes of claiming the principal residence exemption.
Submitted by narmstrong on Sun, 08/13/2023 - 17:29
presence of employee’s spouse at the special work site would not be decisive of their off-site home not being the employee’s “principal place of residence”
An employee worked temporarily at a special work site and kept a self-contained domestic establishment elsewhere, which remained at his disposal....
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presence of employee’s spouse at the special work site would not be decisive of their off-site home not being the employee’s “principal place of residence”
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Principales Questions:
Est-ce qu'un employé peut être considéré tenir ailleurs comme lieu principal de résidence un établissement domestique autonome pour les fins de l'application du paragraphe 6(6) de la Loi malgré le fait que sa conjointe vienne habiter avec lui sur le site du chantier particulier ?
En supposant une réponse affirmative à la première question, est-ce que le remboursement des frais de transport de la conjointe constitue un avantage imposable pour l'employé ?
Principales Questions:
Pour les fins de la définition de "biens agricoles admissibles" et des paragraphes 73(3) et 70(9) de la Loi :
a) les fonds de terre boisés qui protègent contre l'érosion et l'effritement des terres cultivées peuvent-ils être considérés comme étant des biens utilisés principalement dans le cadre de l'exploitation d'une entreprise agricole ?
b) les fonds de terres boisés détenus pour expansion future peuvent-ils être considérés comme étant des biens utilisés principalement dans le cadre de l'exploitation d'une entreprise agricole ?
c) peut-on comparer la valeur de la partie cultivée par rapport à la valeur de la partie boisée non défrichée pour déterminer si un lot particulier est utilisé principalement dans le cadre d'une entreprise agricole?
Principal Issues: An individual moved (apparently a distance which is in excess of 40 kilometres) in order to enhance his employment opportunities with his current employer. However, the individual has been unsuccessful in obtaining a position at the new location. The employee has asked about the deductibility of the moving expenses.
Position: General comments were provided. We noted that subsection 62(1) of the Act allows for the amount paid as or on account of eligible moving expenses that were not deductible in the year they were paid, to be deducted in a future year to the extent not previously deductible. However, it is a question of fact whether or not the individual moved for the purpose of enabling himself to be employed at a new work location in Canada (paragraph 15 of IT-178R3).
Reasons: It was not possible to provide definitive comments because of the limited information that was considered.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:17
Where an estate of the deceased acquires a controlling bloc of shares of a corporation that was controlled by the deceased and the shares are then...
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Principal Issues: Application of subsection 40(3.6) where a trust acquires some shares of a corporation from a deceased's estate and the remaining shares of the corporation held by the estate are redeemed. The estate and the trust have the same non-affiliated executors/trustees.
Position: Generally, the estate would not be considered to be affiliated with the corporation after the share redemption.
Principal Issues:
Is the calculation of the current year's claim for the tuition and education amount on Schedule 11 incorrect?
Position: No.
Reasons:
Because the ordering provisions of section 118.92 must be applied, the amount of the tuition and education credits claimed and carried-forward are determined before claiming certain tax credits that may be available.
Principal Issues: Whether the payment made to a former employee to compensate him for medical expenses that would have been covered under employer's private health services plan would be taxable.
Position: Probably not taxable.
Reasons: Since the other payments made to the employee under the settlement agreement appear to represent employment income, then it is reasonable to conclude that the reimbursement of the medical expenses that would otherwise have been covered under the phsp, would not be subject to tax.
Principal Issues:
Meaning of the wording "travel expenses incurred by the taxpayer while away from home in the course of carrying on the taxpayer's business" as used in section 18(1)(h) of the Act in a situation of a self-employed contractor.
Principal Issues: Is non-deductible interest that is refunded to a taxpayer on an overpayment of Crown royalty charges included in income.
Position: Yes.
Reasons: A refund of interest to a taxpayer on an overpayment of Crown royalty charges would be required to be included in income in accordance with subparagraph 12(1)(x)(iv). However, the taxpayer would be entitled to elect pursuant to subsection 12(2.2), provided the requirements of both provisions are otherwise satisfied.
