Advance Income Tax Ruling Fees Order, SOR/90-234; Interest and Administrative Charges Regulations, SOR/96-188
Principal Issues: What recourse is available to collect overdue Advance Income Tax Ruling fees?
Position: Principal remedy is to file a Statement of Claim in the Federal Court and secondly amend Information Circular 70 6R5 to provide remedial measures, including (i) an undertaking from the representatives of taxpayers to pay the fees where their clients fail to do so; (ii) refusal to consider any further ruling requests from a taxpayer, the taxpayer's representative or the representative's firm where fees remain outstanding 90 days after billing; and (iii) provision for payment of all fees prior to the release of a ruling.
Reasons: The errant behaviour of a few is placing an inordinate burden on administrative resources.
Principal Issues: Whether Canco's provision of the XXXXXXXXXX services will result in the Partnership being considered to be carrying on business in Canada.
Principal Issues: For taxpayers using electronic payment cards wishing to claim the public transit pass credit: 1. Will a round trip be accepted as the equivalent of two one-way trips for the purposes of the subsection 118.02(1) definition of an "eligible electronic payment card"? 2. Can "regular commuters on smaller routes on XXXXXXXXXX " claim the credit?
Position: 1. Yes 2. A question of fact.
Reasons: 1. Round trip accepted as equivalent of two one-way trips. 2. A route will meet the definition of public commuter transit services if it operates at least five days per week and it can reasonably be expected that individuals using that particular route would return daily to their place of departure.
XXXXXXXXXX 2009-031621
Andrea Boyle, CGA
June 16, 2009
Dear XXXXXXXXXX :
Principal Issues: Whether a program for children's swimming lessons held for 30 to 45 minutes each day during nine days can be a prescribed program of physical activity pursuant to paragraph 9400(2)(b) of the Regulations.
Position: Yes. Assuming that all the other conditions are met, a program for children's swimming lessons could be an eligible program for the credit when it is held for at least five consecutive days, during which at least 50% of the daily activity during the program hours each day involved a significant amount of physical activity.
Reasons: In order to meet the requirement that 50 % of the daily activities include a significant amount of physical activity, CRA will consider the duration of all the daily activities provided under the program. The legislation does not require a minimum daily duration time.
Principal Issues: A charity operates to provide affordable housing for people with intellectual disabilities. Can a charitable tax receipt be issued when parents make a donation to the charity to ensure accommodation for their child?
Position: Provided general comments on the application of the draft gifting legislation.
Reasons: Under the proposed split-receipting rules, the eligible amount of a gift is the excess of the fair market value of the property transferred to a qualified donee over the amount of the advantage provided to a donor.
Submitted by narmstrong on Sun, 11/22/2020 - 03:19
bonus taxable even where employee requests that it be spent on skills training
An employer received an additional budget envelope from a government Ministry, identified as a lump-sum performance bonus, so that the Ministry...
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Principales Questions:
Quel est le traitement fiscal de paiements ou de remboursements de frais de formation dans les cas où l'employeur paye ou rembourse les frais de formation aux employés ayant fait la demande d'utiliser, en tout ou en partie, leur boni forfaitaire de rendement à cette fin?
Position Adoptée:
Tout montant de boni payé à un employé doit être inclus dans le calcul de son revenu dans l'année où le boni lui est payé en vertu du paragraphe 5(1).
Raisons:
Lorsqu'un employé renonce à une somme à laquelle il a ou aura droit, tel qu'un boni payé ou à être payé dans le cadre de son emploi, en le convertissant en paiement ou remboursement de frais de scolarité non imposable, l'employé doit inclure le montant de la rémunération ainsi convertie dans le calcul de son revenu de l'année où a eu lieu la conversion.
Submitted by narmstrong on Sat, 12/05/2020 - 16:16
factors in Reg. 6302 applied to determine which parent has primary care responsibility – if indeterminate, CRA applies its shared eligibility policy
The father and mother, who are separated, have not remarried and remain in the same neighbourhood in their respective residences, have joint...
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Principales Questions: 1. Est-ce la présomption prévue à l'alinéa f) de la définition de particulier admissible de l'article 122.6 de la Loi de l'impôt sur le revenu s'applique dans une situation où les parents vivent séparés?
2. Est-ce que la mère pourrait être considérée comme étant la personne qui assume principalement la responsabilité pour le soin et l'éducation de l'enfant durant toute l'année, même lorsque ce dernier réside chez son père?
Position Adoptée: 1. Non. La Loi prévoit qu'il ne peut y avoir qu'un seul des deux parents à titre de particulier admissible de la PFCE au cours d'un mois donné. Il n'est pas possible de déterminer si une personne à charge admissible réside avec le parent féminin à un moment donné, dans un cas de garde partagée pour des périodes de temps équivalentes car la personne à charge peut passer autant de temps chez l'un ou chez l'autre de ses parents et sa résidence peut varier de mois en mois. La présomption de l'alinéa f) de la définition de l'expression "particulier admissible" à l'article 122.6 de la Loi est non seulement réfutable dans cas où les circonstances prévues au paragraphe 6301(1) s'appliquent, mais également dans les cas où les critères énumérés à l'article 6302 favorisent l'autre parent. La politique administrative d'admissibilité partagée s'applique pour une période rotative de six mois dans une situation de garde partagée pour des périodes de temps équivalentes, si elle n'est pas contestée, car l'Agence du revenu du Canada présume que la personne à charge admissible réside chez chacun de ses deux parents et que chacun d'eux assume principalement le soin et l'éducation de la personne à charge admissible.
2. Question de faits, mais possiblement oui.
Raisons: 1. La Loi de l'impôt sur le revenu et jurisprudence pertinente. La présomption à l'alinéa f) de la définition de "particulier admissible" n'est pas une présomption irréfragable.
2. Question de faits. Possiblement si la mère fait appel d'une éventuelle détermination du ministre et démontre qu'elle respecte réellement les exigences de la définition de l'expression " particulier admissible" à l'article 122.6 de la Loi, tout en tenant compte des critères énumérés à l'article 6302 du Règlement de l'impôt sur le revenu.
Submitted by narmstrong on Sat, 12/05/2020 - 18:12
provincial Crown corporations not required to file T2 returns and forms
In indicating that a provincial Crown corporation was not required to file a T2 return, CRA stated:
This position also applies to the forms that...
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Principales Questions: Est-ce qu'une société d'État provinciale est tenue de produire une déclaration de revenus des sociétés (T2) et le formulaire T106 ?
Principal Issues: Whether charitable donation receipts can be issued to church members where the church is paying for children to attend a week long camp held by a camp associated with the church and donations are solicited from church members for this particular purpose? Whether a charitable donation receipt could be issued for donations directed to 2 particular programs?
Position: Provided that a program is an activity that furthers one or more of the church's stated charitable purposes, donations received from members of the church that are directed to this program should qualify as gifts for purposes of 118.1(1) of the Income Tax Act (the "Act") and charitable donation receipts could be issued to the donors for the eligible amount of the gift.
Reasons: By definition under the Act, a charitable organization must devote its resources to charitable activities carried on by the organization itself. Under the proposed split-receipting rules, any benefits to the donors or to persons with whom the donor does not deal at arm's length would result in an advantage under 248(32) and would reduce the "eligible amount" of the gift.
refund of instalments paid in excess of Part I tax for year ignoring s. 128.1(4) departure tax permitted where s. 220(4.5) security posted for such departure tax
Submitted by narmstrong on Sat, 12/05/2020 - 22:27
refund of instalments paid in excess of Part I tax for year ignoring s. 128.1(4) departure tax permitted where s. 220(4.5) security posted for such departure tax
Before concluding that the posting of security under s. 220(4.5) for departure tax can generate a refund of instalments paid in excess of regular...
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posting of security for departure tax can generate refund of instalments paid in excess of regular tax
213
Principal Issues: Est-ce que le montant de la garantie pour l'impôt de départ prévue au paragraphe 220(4.5) est considéré afin de déterminer le montant que le particulier recevra en remboursement d'acomptes provisionnels payés en trop ?
Position: En pratique oui.
Reasons: Libellé de la LIR et position administrative.
Principal Issues: What is the CRA's position with respect to the application of paragraph 20(1)(f) in the context of exchangeable debentures and commodity based loans, in light of the Federal Court of Appeal's decision in the Tembec Inc. et al. v. The Queen, 2008 DTC 6601, 2008 FCA (application for leave to appeal dismissed by the Supreme Court of Canada on January 22, 2009)?
Position: None.
Reasons: Our analysis with respect to this issue has not been completed yet. If, as a result thereof, there is a change in CRA's position, such change will be announced to the public as soon as the analysis is completed.
Principal Issues: Tax treatment of the income or losses of a partnership in circumstances where a member of the partnership elects to report its Canadian tax results in a functional currency
Position: The member's income or loss from the partnership for the partnership's last fiscal period that ends before the last day of the member's first functional currency year is computed in Canadian currency and converted to the member's elected functional currency in the manner specified by paragraph 261(5)(c)
Principal Issues: Est-ce que le Cumul des autres éléments du résultat étendu présenté dans les capitaux propres en vertu du chapitre 3855 du Manuel de l'ICCA doit être ajouté au capital en vertu de l'alinéa 181.2(3)a) à titre de tout autre surplus lorsque le montant est positif?
Position: Non.
Reasons: Ce montant n'est pas un surplus d'un point vue comptable.
Submitted by narmstrong on Sun, 12/06/2020 - 00:18
premiums paid by broker on policies on which the insureds were family members were non-deductible notwithstanding that the related commissions earned by him were taxable
A self-employed financial products broker receives commissions for the sale of life insurance policies that he takes out for his own benefit (the...
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premiums paid by broker on policies on which the insureds were family members were non-deductible notwithstanding that the related commissions earned by him were taxable
115
Principales Questions: Les primes payées par un courtier en produits d'assurance, relativement à des polices dont il est propriétaire et dont les personnes assurées sont des membres de sa famille, sont elles déductibles dans le calcul de son revenu provenant d'une entreprise?
Position Adoptée: Non, car il s'agit de dépenses personnelles.
S. 168(1) Excise Tax Act S. 152(1) Excise Tax Act S. 296(1)(b) Excise Tax Act
Principal Issues: Whether an assessment under s. 296(1)(b) of the Excise Tax Act predates the filing of a proposal under the Bankruptcy and Insolvency Act
Position: Yes.
Reasons: The combined effect of paragraph 152(1)(a) and subsection 168(1) of the Excise Tax Act makes an assessment under paragraph 296(1)(b) of the Excise Tax Act a provable claim in a proposal. Since it is a provable claim, the assessment must be placed in a reporting period prior to the filing of a proposal.
