only investment dealer or fund manager generally expected to report MFT fund unit redemptions on T5008s
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Principal Issues: Where mutual fund securities are held in nominee form by the dealer, on behalf of the client, when the client disposes of the units, who is required to issue an information return (T5008 slip) to the client under section 230 of the Regulations? If both the dealer and mutual fund are required to issue T5008 slips to the investor under section 230 of the Regulations, are there duplicate T5008 slips being issued to the investor?
Position: Adoption of an administrative position by Assessing to avoid the duplication of T5008 slips being issued by the mutual fund and the dealer to the investor.
Principal Issues: Will the hypothetical scenario presented involving a deceased RPP member's pension benefit, the RPP member's financially dependent infirm child and the child's RDSP fall within the parameters of the RDSP rollover provisions in section 60.02 of the Act?
Position: No, based on the scenario described in the letter.
Reasons: Where an RPP lump sum death benefit is paid from the RPP to the deceased RPP member's financially dependent infirm child, the RPP lump sum death benefit will be eligible for a section 60.02 rollover, provided certain conditions therein are satisfied. A section 60.02 rollover is not available where the RPP death benefit is paid to the deceased's estate and subsequently paid from the estate to the deceased's financially dependent infirm child.
Submitted by narmstrong on Wed, 01/04/2017 - 03:25
protection component of universal life policy far exceeds specified beneficiary's reasonable survivor benefits
An RCA trust acquires and holds a universal life insurance policy on the life of the individual who is the sole specified beneficiary of the RCA....
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Principal Issues: Whether the RCA advantage tax rules apply in respect of a universal life insurance policy owned by an RCA trust on the life of a beneficiary under the RCA.
Position: The RCA advantage tax rules could apply.
Submitted by narmstrong on Wed, 01/04/2017 - 02:40
use of life insurance policies for key man insurance would be an advantage
2013-0481421C6 concerned an RCA holding a life insurance policy that provided more than a nominal death benefit where, after indicating that the...
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Principal Issues: Whether the RCA advantage tax rules apply in respect of a universal life insurance policy owned by an RCA trust on the life of a beneficiary under the RCA
Position: The RCA advantage tax rules could apply.
advantage tax applies where a specified beneficiary of an RCA assigns her rights to receive distributions from the RCA to secure a personal loan
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Principal Issues: Whether the RCA advantage tax would apply if a specified beneficiary of an RCA were to assign their rights to receive distributions from the RCA to secure a personal loan or other debt, with concurrence of the RCA custodian.
Position: Yes.
Reasons: The assignment constitutes an advantage on the basis that it is a benefit conditional on the existence of the RCA. The exception for arm’s length loans does not apply. The advantage is the benefit derived from the security (i.e., the more favourable loan terms), not the loan itself.
Principales Questions: 1. Est-ce que le paiement se qualifie comme étant des redevances perçues d'avance? / Does the payment qualify as a royalty prepayment ? 2. Est-ce que le paiement doit être inclus au revenu en vertu de l'alinéa 12(1)a) ou du paragraphe 9(1)? / Should the payment be included into income as per paragraph 12(1)(a) or subsection 9(1) ?
Position Adoptée: 1. Question de fait / Question of fact. 2. Le paiement pourrait être visé par l'alinéa 12(1)a) ou le paragraphe 9(1) de la Loi./ Both provisions (whether 12(1)(a) or 9(1)) could apply.
Raisons: 1.Le paiement n'est pas établi en fonction de ventes futures ou d'autres éventualités/évènements à venir, ce qui ne semble pas correspondre avec la définition du terme « redevance » émise par les tribunaux./ The payment is not determined based on future sales or other contingency, which does not seem consistent with the definition of "royalty" as enunciated by the courts. 2. Puisque le contribuable ne désire pas bénéficier d'une déduction en vertu de l'alinéa 20(1)m), il n'était pas nécessaire d'établir si une disposition avait préséance sur l'autre. / Since the taxpayer did not want to claim a deduction under paragraph 20(1)(m), it was not necessary to establish whether a provision took precedence over the other.
