Principal Issues: Amendments to proposed transactions brought to our attention.
Position: Amendments to the third paragraph of Ruling D of the original rulings no. 2012-045142 and confirmation that, subject to this amendment and to the conditions, limitations, qualifications, and comments set out therein, the original Ruling no. 2012-045142 will continue to be binding on the CRA.
Principal Issues: Whether assistance provided by a company to its employees who live in Slake Lake (an area recently decimated by wildfires) to cover extra costs for living expenses could be treated as non-taxable to those employees.
Position: The assistance does not have to be included in the taxable income of the employees however it should be noted that the employer will not be entitled to a deduction since the payments are not outlays or expenses made or incurred for the purpose of gaining of producing income from the business.
Reasons: In the circumstances described, the financial assistance provided by the employer is being made for philanthropic reasons and not as a payment to employees for services performed. Therefore we do not consider the payments to have been received by virtue of an office or employment.
Principal Issues: 1. Whether an excess EPSP amount is considered compensation for RPP purposes. 2. Are contributions/allocations after March 29, 2012, subject to withholdings?
Position: 1. Question of Fact 2. No
Reasons: 1. The excess EPSP amount may be viewed as compensation as it applies to an RPP, however, subject to other conditions, pension benefits provided must be in respect of eligible services as employees. It is a question of fact whether a particular recipient has "eligible service". 2. It is currently the CRA`s view that income tax, CPP and EI withholdings are not required.
Principal Issues: 1. Property transferred to beneficiary in satisfaction of capital interest with debt owing by the trust to that beneficiary eliminated.
Position: 1. Property transferred represents partial 107(2) distribution & partial payment of debt outstanding-"in kind".
Reasons: 1. Debt must be settled for face value = fmv or tax consequences of debt forgiveness may result; gain may occur on portion of the property disposed of by the trust in payment of debt.
Principales Questions: L'acquisition d'un bien en contrepartie d'un dollar est-elle considérée une acquisition par donation aux fins de l'alinéa 69(1)c) ?
Whether acquisition of property in consideration of one dollar is considered an acquisition by gift under paragraph 69(1)(c)?
Position Adoptée: Pourrait être le cas selon les circonstances.
Could be the case depending on circumstances.
Raisons: La question de déterminer si une acquisition peut être considérée une acquisition par donation doit généralement être faite sur la base des rapports juridiques créés par le contrat d'acquisition du bien.
The question to determine whether an acquisition can be considered an acquisition by gift must generally be done on the bases of the legal relationship created by the contract of acquisition of the property.
Principal Issues: Whether the payment of interest by a Canadian corporation to a non-resident corporation which owns 27% of the Canadian corporation is subject to the 25% Part XIII withholding tax.
Position: A question of fact.
Reasons: Even if the corporations are not related, under the 251(1)(c) definition of arms-length, "...it is a question of fact whether persons not related to each other are at a particular time dealing with each other at arm's length."
Principales Questions: Est-ce qu'un contribuable peut être admissible au RAP s'il a déjà été propriétaire d'une habitation aux États-Unis mais jamais au Canada? May a taxpayer be eligible for the Home Buyers' Plan ("HBP") if the taxpayer has already owned a home in the United States but never in Canada?
Position Adoptée: Oui, si toutes les conditions sont respectées. Le fait que l'habitation ait été située au États-Unis n'est pas un critère pertinent. / Yes, if all conditions are met. The fact that the home has been located in the United States is not a relevant criterion.
Principales Questions: Que veut dire l'expression « tenir un établissement domestique autonome » aux fins de l'alinéa 118(1)b) ? / What does the phrase "maintain a self-contained domestic establishment" mean for the purposes of paragraph 118(1)b)?
Position Adoptée: Le particulier doit être responsable de l'entretien de son établissement domestique autonome. / The individual must be responsible for the upkeep of its self-contained domestic establishment.
Principal Issues: Would certain payments made to an employee during a leave of absence under a deferred salary leave plan be acceptable for purposes of subparagraph 6801(a)(iii) of the Regulations?
Position: No.
Reasons: The payments described are not part of the salary deferred during the deferral period and, in our view, would not be considered fringe benefits.
Submitted by narmstrong on Sat, 06/09/2018 - 02:08
care for ex-spouse in another home did not qualify
For a few months, the taxpayer spent significant time with her ex-spouse (and father of her child) who since died from cancer. She helped him at...
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Principales Questions:
Un particulier demande s'il est possible de lui accorder le montant pour aidants naturels malgré le fait qu'il ne respecte pas toutes les conditions prévues à l'alinéa 118(1)c.1).
A taxpayer would like to know if he/she is eligible to the caregiver amount even if he/she does not meet all the conditions under paragraph 118(1)c.1).
Principal Issues: 1. Whether a student is entitled to claim the education and tuition tax credits where the student is enrolled in a professional certification program at a professional institute which requires the student to take courses at a university in Canada.
2. Who is responsible for issuing a T2202A certificate to the student: the Institute or the University?
Position: 1. Question of fact.
2. Question of fact.
Principal Issues: Whether the fact that the professional course credits are non-transferrable to a university academic program prevents a student from claiming the tuition fees
