Principal Issues: Will proposed amendment to the trust indenture be so significant so as to cause a resettlement of the trust, or a disposition of a beneficiary's interest in the trust?
Position: No resettlement or disposition of beneficiary's interest.
Reasons: Minor variation - removing age restriction cap for those who can act as trustees of the trust.
Submitted by narmstrong on Thu, 02/15/2018 - 02:47
CRA generally will accept amended assignments where the limit was initially indeterminate due to different year ends
A Canadian-controlled private corporation (“first CCPC”) with a calendar year end assigns a portion of its business limit (“BL”) to...
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Principal Issues: In a situation where two CCPC's have different tax year ends, would the CRA accept an amended assignment under subsection 125(3.2) in order to correct the amount of the BL assignment when it is known?
Submitted by narmstrong on Tue, 02/20/2018 - 23:33
distributor is not required to produce goods in respect of which it pays a copyright royalty
A group of corporations, formed and resident in the United States (collectively, “USIP”), own the copyright to artistic work (the “Copyright...
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Principal Issues: For the purposes of subparagraph 212(1)(d)(vi), does “a royalty or similar payment on or in respect of a copyright in respect of the production or reproduction of any literary, dramatic, musical or artistic work” include a payment for the right to use a copyrighted artistic work in connection with the manufacture, sale and distribution of products in Canada where the taxpayer ultimately only sells and distributes in Canada products that use that copyrighted work?
Position: Question of fact.
Reasons: Where a payor has entered into a legal agreement by which it has been granted the right to manufacture, sell and distribute products using the copyrighted property of the third party, a payment, to the extent it is a royalty or similar payment, made by the payor to the third party would be considered to be “on or in respect of a copyright in respect of the production or reproduction of any...artistic work” in subparagraph 212(1)(d)(vi) even if the payor does not manufacture any products using the copyrighted property itself.
a set-off right of an issuer of a TFSA violated the exclusive holder benefit rule
147
Principal Issues: Whether certain rights for an issuer as part of an arrangement can qualify under the conditions in subsection 146.2(2) such that the arrangement can be a TFSA.
Position: No.
Reasons: The rights in the particular arrangement cause the account to be maintained other than for the "exclusive benefit" of the holder and provide rights as to amount and timing of distributions to someone other than the issuer or the holder.
benefit from interest free loan by CFA to Canco sister deemed to be a dividend subject to Pt XIII tax
177
Principal Issues: (1) Where subsection 80.4(2) applies to a non-resident person receiving a non-interest bearing loan from another non-resident person, whether the non-resident debtor is liable to tax under subsection 212(2) and whether the non-resident creditor has the obligation under subsection 215(1) to withhold and remit the tax. (2) If the non-resident creditor fails to withhold and remit the tax under subsection 215(1), whether there is a provision under the Act that would allow the Minister to assess one of the corporations resident in Canada for such tax.
Position: (1) The non-resident debtor is liable to tax under subsection 212(2) and the non-resident creditor is obligated under subsection 215(1) to withhold and remit the tax. (2) If certain conditions are satisfied, the Minister may be able to assess Canco under subsection 160(2) in respect of an amount payable by Canco under subsection 160(1).
Reasons: (1) The scheme of the Act and the application of all relevant provisions based on a textual, contextual, and purposive approach of statutory interpretation. (2) Subsection 160(1) can apply to cascading transfers of property.
