Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:18
cashless exercise through broker short sale - timing of acquisition
A cashless exercise method of exercising employee stock options is utilized under which identical shares are sold short through a broker, with the...
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Principales Questions: When the cashless method of exercising an option is used, what is the time the security is acquired for the calculation of the benefit pursuant to paragraph 7(1)(a)?
Position Adoptée: In a situation of cashless exercise, the benefit under paragraph 7(1)(a) will be based on the fair market value of the security at the time the share is transferred by the employer, to the employee or the employee's broker.
Raisons: Previous positions and legislation analysis
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:16
An award was given by an institute attached to a Canadian university, which recognized "educators in Canada who have demonstrated innovation and...
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Principal Issues: 1. Determination of whether a specific award constitutes a prescribed prize.
Position: 1. While the award meets the general requirements for a prescribed prize, the organization, in conjunction with the recipient must determine whether the amount can be regarded as compensation for services rendered or to be rendered.
Submitted by narmstrong on Sat, 06/09/2018 - 15:00
timing of loss of CCTB when cohabitation commences
Ms. A received the CCTB for her three children for the period from July 2010 to June 2012. However, on June 1, 2011, Mr. B moved into her home and...
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Principales Questions: Quelles sont les conséquences d'un changement d'état matrimonial lors du calcul de la PFCE.
If the marital status changes, will this change affect the CCTB payments?
Position Adoptée: La PFCE sera ajustée à compter du premier mois civil commençant après le changement d'état matrimonial.
The CCTB will be adjusted starting on the month following the month in which the marital status changes.
Principal Issues: Various questions including whether (1) the Act permits a rollover of RRSP amounts to a trust established for the benefit of a mentally competent surviving spouse or common-law partner; (2) timing restrictions apply with respect to amounts designated under subsection 146(8.1) of the Act; and (3) an election under a RIF agreement or in the deceased annuitant's will which would constitute a valid election as provided under the definition of "retirement income fund" in subsection 146.3(1) of the Act?
Position: (1) No; (2) Election to be made for year in which RRSP proceeds are paid to the legal representative; and (3) the annuitant may elect as part of the RIF agreement or under a provision of the annuitant's will for payments to continue to be made to the annuitant's spouse or common-law partner after the annuitant's death.
Reasons: (1) No; (2) 146(8.1); and (3) 146.3(1) definition of "retirement income fund" and IC78-18R6, paragraph 12.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:11
An NPO (the "Club") owned a clubhouse. "In recent years, the Club has reported revenue from bar sales to members and hall rentals to...
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Principal Issues: 1. Is the main purpose of the NPO to provide dining, recreational, and sporting facilities? 2. Does the capital gain resulting from the sale of the real property qualify for the exemption of tax under subparagraph 149(5)(e)(ii)?
Position: 1. Question of Fact. 2. Yes
Reasons: A NPO is not deprived of the exemption from the capital gain and loss provisions of subparagraph 149(5)(e)(ii) by reason only of occasional rental of its property to non-members
Submitted by narmstrong on Sat, 06/16/2018 - 16:06
sport school camp expenses do not include accommodation expenses paid to a host family
A taxpayer, whose child was selected to join an elite hockey team that is linked to a distant school agreed with a host family in that area to...
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Principales Questions: Les frais d'hébergement en famille d'accueil dans une situation particulière peuvent-ils être admissibles à titre de frais de garde d'enfants aux fins du paragraphe 63(3)? [TRANSLATION] : Can expenses for accommodation within a host family be eligible as child care expenses for purposes of subsection 63(3) in a particular situation?
Position Adoptée: Non. [TRANSLATION] : No.
Raisons: Nous sommes d'avis que les frais d'hébergement en famille d'accueil ne sont pas des montants versés à une école de sport offrant des services d'hébergement. [TRANSLATION] : We are of the opinion that expenses for accommodation within a host family are not amounts paid to a sports school that provides lodging services.
Principal Issues: Whether certain legislative amendments announced in the 2012 federal budget apply to an RDSP arrangement entered into prior to June 29, 2012, the coming into force date.
Position: The arrangement was entered into prior to the effective date of June 29, 2012. As a result, these legislative amendments do not apply to the arrangement.
Reasons: Income Tax Act, subsection 146.4(1) definition of "qualifying family member".
Principal Issues: Whether the payment of bonus interest by a RIF carrier to an annuitant's RRIF would be a prohibited benefit for purpose of paragraph 146.3(2)(g), prior to March 23, 2011 (the effective date 146.3(2)(g) is repealed)?
Position: In general, no, provided the bonus interest is paid by the RIF carrier into the annuitant's RRIF
Reasons: The provisions of 146.3(2)(g), specifically, subparagraph 146.3(2)(g)(i). Also, our position regarding prohibited benefits for purposes of RRIFs is similar to our position regarding prohibited advantages and RRSPs.
