Principal Issues: Whether a loan from a controlled foreign affiliate to a related non-resident entity will trigger the application of subsection 15(2) and Part XIII.
Position: No
Reasons: Subsection 15(2) does not apply to loans between non-residents.
Principal Issues: Whether a trust must file Form T1079 and T1079-WS annually with the Trust T3 Return. Whether a T3 should be filed annually when there is no income earned in the trust.
Position: Form T1079 and T1079-WS should be filed with the T3 in the year in which the disposition or deemed disposition of the principal residence occurs. A T3 return must be file under certain circumstance (as listed below).
Principal Issues: 1. Is an award for loss of income due to a personal injury claim taxable in the hands of the recipient?
2. Is there a difference to the tax status of the award if the award is a result of either a Court judgement, or an out-of-court settlement?
Position: No. Whether the award is a result of a Court judgement or settlement is not relevant in determining its taxable status.
Reasons: IT-365R- damages received for personal injury are excluded from income.
Submitted by narmstrong on Sat, 03/14/2020 - 15:01
drug to treat skin condition qualified
Regarding a drug prescribed by a dermatologist and recorded by a pharmacist, CRA stated:
[T]he expenses incurred by the taxpayer to purchase a...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Principales Questions: Est-ce que les frais engagés pour l'achat d'un médicament pour traiter une forme rare d'un problème de peau peuvent être admissibles aux fins du crédit d'impôt pour frais médicaux?
Position Adoptée: Question de fait. Probablement que oui.
Raisons: Les conditions prévues à l'alinéa 118.2(2)n) semblent être respectées.
Principal Issues: What is the required withholding on a lump-sum amount received as a wrongful dismissal settlement?
Position: For payments made in Ontario, 10% should be withheld on any lump-sum settlement amount up to $5,000, 20% on the entire settlement if the amount is between $5,000 and $15,000 and 30% on the entire amount if the lump-sum payment is in excess of $15,000.
Reasons: The lump-sum settlement is generally considered a retiring allowance and the amount to be withheld can be found in subsection 103(4) of the Regulations.
Principal Issues: Should a designated educational institution issue T2202As to students who are fully funded through various funding sources to attend the institution? Should T2202As be issued to students who only have tax exempt income?
Position: T2202As should be issued to all students who are in qualifying education programs or specified educational programs at the designated educational institution.
Reasons: It is the students' responsibility to determine if they can claim the education and post-secondary textbook credits.
TA 28, TA 46(1), TA 46(2), TA 48(1), TA 111; 128(1), Reg. 400(2)(e.1)
Principal Issues: 1. At what point in time does a bankrupt corporation cease to have a permanent establishment (PE) in Ontario? 2. When is such a corporation liable to pay its remaining transitional tax debit balance?
Position: 1. Question of fact. 2. Depends on whether corporation has a PE in Ontario.
Reasons: The existence of a PE is a question of fact. If the corporation has become a bankrupt, its amortization period ends in the tax year in which, based on the facts, it ceases to have a PE in Ontario. The balance of the corporation's transitional tax debit is due in the tax year in which its amortization period ends.
Principal Issues: Whether the capital dividend election filed under subsection 83(2) of the Income Tax Act should continue to be considered excessive despite the election under subsection 14(1.01) of the Income Tax Act filed with the tax return deeming the disposition of eligible capital property to be a disposition of capital property.
