Principales Questions: Does the proposed plan (a self-funded sabbatical program) qualify as a prescribed plan or arrangement pursuant to paragraph 6801(a) of the Income Tax Regulations?
account must be reported once it closes over $50,000
266
Principal Issues: Whether a new individual depository account that exceeds the $50,000 threshold provided for in paragraph A of section III of Annex I to the TIEA at the end of a calendar year may be designated under subsection 264(1) of the Act in a subsequent year if the depository account balance drops below $50,000 at the end of that subsequent year.
Position: No.
Reasons: Wording of paragraph A of section III of Annex I to the TIEA.
118(1)(b.1)(ii); 118(4)(b); 118(4)(b.1). Section 15 of the Interpretation Act.
Principal Issues: Whether shared custody parents can agree to share the Canada caregiver credit for an infirm child under 18 years of age and the eligible dependant credit (EDC) in respect of the same child for the same tax year.
Position: No; the EDC and the Canada caregiver credit for an infirm child under 18 years of age must be claimed by the same parent in respect of the same child.
Reasons: As a result of the general limitation in paragraph 118(4)(b) of the Act, only one parent will ever meet the conditions stated in clause 118(1)(b.1)(ii)(A) of the Act.
Submitted by narmstrong on Tue, 10/30/2018 - 22:31
Canadian Petroleum royalties generally deductible
Respecting whether royalties paid under the Canada Petroleum Resources Act ("CPRA") would be considered a tax on income or profit and, therefore,...
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Principal Issues: Whether royalties paid under the Canada Petroleum Resources Act are considered to be an expense deductible in computing business income.
Submitted by narmstrong on Tue, 10/30/2018 - 02:22
recognizing a s. 50(1)(b) loss on shares does not trigger a s. 7(1.1) benefit
An arm’s length employee (“Employee”) exercises stock options in Year 1 to acquire shares of the employer Canadian-controlled private...
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Principal Issues: Whether the deemed disposition rules in subsection 50(1) for shares of bankrupt corporations result in a disposition for purposes of section 7?
Position: No.
Reasons: The preamble to subsection 50(1) restricts its application to the rules for determining capital gains and capital losses in subdivision c. It does not apply for the purposes of the Act as a whole.
