Principal Issues: 1. Does the acquisition of a partial interest in a home qualify for purposes of the Home Buyers’ Plan (“HBP”) under section 146.01? 2. Must the interest be registered on the title of the property? 3. What type of written agreement is required? 4. Does the purchase qualify to be exempt from the land transfer tax?
Position: 1. Yes. 2. No. The individual must establish that they obtained either legal ownership or beneficial ownership. 3. The individual must be able to provide sufficient documentation that demonstrates that there is an agreement in writing. 4. Unable to respond.
Reasons: 1. Paragraph 146.01(2)(a) contemplates joint ownership. 2. Jurisprudence. 3. An agreement in writing can take many forms. 4. Not CRA's area of responsibility.
Principal Issues: Are amounts received from a charity as disaster relief included in income for an individual personally? Would disaster relief constitute social assistance? Are such amounts included in income when received by a business?
Position: Question of fact. Amounts received by individual for personal losses are generally not taxable. An amount received as disaster relief is usually not social assistance. Where disaster relief is received in the course of carrying on business, it is likely included in income under section 9 or paragraph 12(1)(x).
all self-directed RRSPs and TFSAs are resident in Canada
162
Principal Issues: What is the residence of a TFSA trust?
Position: A TFSA trust will always be resident in Canada.
Reasons: A trust resides where its real business is carried on, which is where the central management and control of the trust actually takes place. In the case of a trust governed by a TFSA, RRSP, RRIF, RESP or RDSP, this will always be in Canada where the corporate trustee resides given the duties and obligations imposed on the trustee under the Act.
Class 1(q), Class 6, Class 10(e) of the Regulations
Principal Issues: Appropriate capital cost allowance (“CCA”) classification of “wellsite trailers” under Schedule II of the Income Tax Regulations (the “Regulations”) under two specific scenarios. 1. The wellsite trailers are moved around frequently from site to site, i.e. at least 30 times a year; 2. The wellsite trailers are installed and remain at a particular site for a long period of time.
Position: 1. Class 10(e); 2. Class 6 or Class 1(q).
Reasons: 1. The wellsite trailers in this scenario are portable and are moved frequently and are therefore not buildings or structures, but instead fall within Class 10(e).
2. In the second scenario, the wellsite trailers are installed and remain at a particular site for a long period of time and would otherwise have the characteristics of a building. If the wellsite trailers are made of corrugated metal and have no footings or other base supports below ground level, they would fall within Class 6. If this is not the case, such wellsite trailers would fall within Class 1(q).
