97.2 Ontario Taxation Act; 1100(1)(a.1), 1101(5b.1), 1104(2) Income Tax Regulations
Principal Issues: Various questions on the application of the OMMITC and other issues related to the definition of Manufacturing and Processing (“M&P”)
1. If the property is leased to the manufacturing corporation by a holding corporation, which corporation is eligible for the OMMITC?
2. Are the front office, warehouse and other facilities included in the 90% M&P floor space requirement?
3. Is a building addition or improvement to an existing building in respect of which the OMMITC was claimed in a previous year eligible for the OMMITC in a following year?
4. Can CRA provide any further guidance on the appraisal of land for the determination of the rental cost, for purposes of computing M&P profits?
Position: 1. The qualifying corporation that owns the building.
2. Question of fact.
3. No.
4. The split between land and building should be made on a reasonable basis.
Submitted by narmstrong on Fri, 08/29/2025 - 02:29
a Canadian employer had no source deductions obligations when a resident employee emigrated to another taxing country and performed his duties remotely
An individual, who had been employed by a corporation incorporated in Canada, ceased to be a resident of Canada but continued to provide services...
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Principal Issues: Does a resident employer have to withhold tax on salary paid to a non-resident employee where the duties of employment are performed outside Canada and the remuneration is taxed in the other country?
Position: No.
Reasons: Subsection 104(2) of the Regulations provides that withholding is not required where duties of employment are performed outside Canada by a non-resident employee and the payment is subject to tax in the country of residence.
Principal Issues: Whether Guaranteed Investment Certificates (“GICs”) issued by a Canadian bank or trust company are assets listed in paragraph 150(1.2)(b)?
Position: No.
Reasons: GIC issued by a Canadian bank or trust company does not meet the description of any of the assets listed in paragraph 150(1.2)(b). Therefore, if a particular trust holds a GIC issued by a Canadian bank or trust company, it would not be a trust described in paragraph 150(1.2)(b).
Reg. 204.2(1) reporting applies to an inter vivos trust that was wound up in 2023
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Principal Issues: Is a trust, other than a GRE, required to provide the additional information outlined in subsection 204.2(1) of the Regulations if it has been wound up between January 1, 2023 and December 30, 2023?
CEWS is excluded from gross revenue and wages for Reg. 402(3) purposes
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Principal Issues: Where a corporation has permanent establishments in multiple provinces, whether the Canada Emergency Wage Subsidy (“CEWS”) is included in the calculation of “gross revenue” for purposes of subsection 402(3) of the Income Tax Regulations?
