benefit conferred on spouse of individual shareholder of parent
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Principales Questions: 1- Corporation (Opco) with 4 shareholders disposes of an asset to the spouse of one the shareholders for consideration less than FMV. 2- What if the 4 shareholders are shareholders of Holdco and all the shares of the capital stock of Opco are held by Holdco. 3- What if the 4 shareholders are brothers.
Submitted by Anonymous (not verified) on Sun, 11/29/2015 - 02:15
situs of business
In response to what CRA treated as a general inquiry, it referenced the question of whether the non-resident company (which received royalties...
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Principal Issues: Whether Part XIII withholding tax applies to a royalty payment made from Canada to a non-resident taxpayer and whether Article XII of the Canada-US Tax Convention would apply to exempt the payment from withholding.
Position: The answer would depend upon the facts surrounding the payments received from Canada.
Principal Issues: Clarification of how a maternity leave could affect a prescribed plan or arrangement under paragraph 6801(a) of the Regulations.
Position: Paragraph 6801(a) of the Regulations ceases to apply at the time an employee knows he/she no longer intends to return to work immediately following the leave of absence provided for under the Regulation.
Principal Issues: TREATMENT OF PROPERTY HELD IN JOINT OWNERSHIP AT DEATH
Position: LEGAL DETERMINATION REQUIRED
Reasons: TAX TREATMENT DEPENDS ON LEGAL & BENEFICIAL OWNERSHIP OF THE PROPERTY. IF SECONDARY PERSON IS ONLY A NOMINEE ON THE PROPERTY WITH NO OWNERSHIP RIGHTS, THE DISPOSITION OF THE ENTIRE PROPERTY WOULD BE DEEMED UPON THE DEATH OF THE PRIMARY TAXPAYER. IF THE PROPERTY WAS A TRUE JOINT OWNERSHIP, THE TREATMENT IS DIFFERENT.
Principal Issues: 1) Are distributions from a Roth IRA to a resident in Canada subject to tax? 2) Will the conversion of a traditional IRA to a Roth IRA while non-resident in Canada jeopardize the election under ITTN-43?
Position: 1) Yes. 2) No.
Reasons: 1) According to Art. XVIII 3(b) of the Canada-US Tax Convention, a distribution from a Roth IRA is subject to tax to the extent it is included in taxable income if the individual was resident in the US. 2) The deferral outlined in ITTN-43 is only relevant to individuals resident in Canada and does not impact non-resident individuals.
Principal Issues: 1. What is the meaning of the word "Canada" as used in the Act? 2. Can a taxpayer be resident in Canada and in a province at the same time? 3. Is a person working in the private sector liable to tax in the province and in Canada?
Position: 1. "Canada" is defined in the Act. 2. A taxpayer is generally factually resident in Canada and in a province concurrently. 3. Every person resident in Canada at any time in a taxation year shall pay an income tax on their taxable income for each taxation year,.
Reasons: 1. N/A 2. The Act and provincial legislation 3. S. 2(1) of the Act.
