20(1)(c), 9, 12(1)(c), 12(1)(x), 112, Part IV.1, Part VI.1, 245, 258
Principal Issues: Whether Lossco (Parent) would be entitled to apply existing non-capital losses against the interest income that would be generated as part of a loan that would be made under the loss consolidation transactions and whether the accompanying interest expense would be deductible by Newco 2, and then accessible by Amalco on amalgamation with Newco2.
Position: Yes.
Reasons: The proposed transactions conform to our requirements for these types of loss consolidation rulings. The proposed transactions would be legally effective and commercially plausible.
Submitted by narmstrong on Thu, 06/04/2020 - 01:32
CRA will not require a DSLP to be terminated where the leave period has been terminated for COVID reasons
When asked to address employees who had started their three- or six-month leave period, but then had to interrupt it to return to work for...
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Principales Questions: Impact of COVID-19 on the maximum deferral period and minimum leave period requirements under the DSLP rules.
Position Adoptée: Pending completion of a Department of Finance review, the CRA will not require employers to terminate an employee’s DSLP for failing to meet either of these requirements.
Submitted by narmstrong on Thu, 06/04/2020 - 02:26
DSLP leave period can be interrupted or deferred for COVID reasons
The correspondent had had discussions with Finance regarding employees providing essential services having been recalled from their leave before...
The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.
Principal Issues: Impact of COVID-19 on the maximum deferral period and minimum leave period requirements under the DSLP rules.
Position: Pending completion of a Department of Finance review, the CRA will not require employers to terminate an employee’s DSLP for failing to meet either of these requirements.
relaxation of 12-month carryforward limitation in IT-529 during COVID-19
277
Principal Issues: Whether the credits allocated to a health care spending account that are unused as a result of the COVID-19 pandemic and expiring, may be carried forward without affecting the status of the plan as a PHSP?
Position: In these extraordinary circumstances (due to the COVID-19 pandemic), a HCSA that qualifies as a PHSP and which has unused credits expiring between March 15, 2020 and December 31, 2020, could allow a one-time carry forward of those unused credits for a reasonable period to allow members to access services that were otherwise restricted during the COVID-19 outbreak. A period of up to six months would generally be considered reasonable and would not, in and of itself, disqualify the HCSA from being a PHSP.
Principal Issues: Are the lump sum payments to the Survivor Class Members, pursuant to the Federal Indian Day School Settlement Agreement (Day School Settlement), required to be included in the income of the recipient for the purpose of the Income Tax Act (the “Act”)?
Position: The amounts to be paid are not included in income under the Act.
Reasons: The amounts are not income from a source.
