| 9 October 2025 APFF Roundtable Q. 1, 2025-1071431C6 - Capital dividend and inclusion rate for 2024 |
Income Tax Act - Section 220 - Subsection 220(3.1) |
CRA does not have the power to waive tax, e.g., Pt. III tax |
| Income Tax Act - Section 184 - Subsection 184(3) |
CRA cannot cancel Part III tax payable as a result of the CGIR being maintained at ½ |
| 9 October 2025 APFF Roundtable Q. 2, 2025-1071611C6 - Application ou non des paragraphes 227(8) et 227(9) L.I.R Subsections 227(8), 227(9) and 162(7) |
Income Tax Act - Section 227 - Subsection 227(9) |
s. 227(9) inapplicable where no withholding (and also where there was no obligation to withhold pursuant to s. 227(8.5)(a) |
| Income Tax Act - Section 227 - Subsection 227(8.3) - Paragraph 227(8.3)(b) |
interest accrued under s. 227(8.3)(b) between date of s. 214(16)(a) deemed dividend and remittance of Part XIII tax |
| Income Tax Act - Section 227 - Subsection 227(8.5) - Paragraph 227(8.5)(a) |
no penalty under s. 227(9) for failure to withhold or remit Pt. XIII tax on a s. 214(16)(a) deemed dividend because time required to apply s. 18(4) |
| Income Tax Act - Section 162 - Subsection 162(7) |
no penalty under s. 162(7) for failure to withhold or remit Pt. XIII tax on an s. 214(16)(a) deemed dividend |
| 9 October 2025 APFF Roundtable Q. 3, 2025-1071581C6 F - Fusion et actions admissibles de petite entreprise |
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) |
an amalgamation of Acquireco with Targetco should be treated notwithstanding s. 87(2)(a) as being sequenced after the Targetco acquisition |
| Income Tax Act - Section 256 - Subsection 256(9) |
acquisition of CCPC for SBC purposes occurs at its actual time irrespective of s. 256(9) |
| 9 October 2025 APFF Roundtable Q. 4, 2025-1071461C6 - Méthode estimative pour acompte provisionnel et décès : comment se calculent les intérêts |
Income Tax Act - Section 220 - Subsection 220(3.1) |
CRA may relieve interest on deficient or insufficient pre-death instalments |
| 9 October 2025 APFF Roundtable Q. 5, 2025-1071471C6 F - Déduction pour la mobilité de la main-d’œuvre pour les gens de métier – Frais de réinstallation temporaire |
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(t) |
excess of relocation expenses over allowance received was deductible |
| Income Tax Act - Section 8 - Subsection 8(14) - Paragraph 8(14)(e) - Subparagraph 8(14)(e)(iii) |
s. 8(14)(e)(iii) does not preclude deduction for the excess of the relocation expense over a non-taxable allowance received |
| 9 October 2025 APFF Roundtable Q. 6, 2025-1071481C6 F - Transfert intergénérationnel d’entreprise – entité pertinente du groupe |
Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(a) |
no prohibition against the use of the intergenerational transfer rules on a simultaneous sale of 2 QSBCS corps (one a specified group entity) to a childco |
| Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(a) |
simultaneous sale of QSBCS of an Opco and a Realtyco specified group entity to a childco could satisfy s. 84.1(2.31)(a) or (2.32)(a) |
| 9 October 2025 APFF Roundtable Q. 7, 2025-1071491C6 F - Application de l’article 80 L.I.R. et réduction du prix de base rajusté |
General Concepts - Payment & Receipt |
Quebec debtor has the right to determine which advance a repayment should be applied to |
| Income Tax Act - Section 47 - Subsection 47(1) |
the amount of capital gain realized on the partial repayment of two advances with low and full basis turned on whether they were separate properties and how the debtor applied the repayment |
| 9 October 2025 APFF Roundtable Q. 8, 2025-1071501C6 - Application des nouvelles positions de l’ARC concernant le paragraphe 55(2) L.I.R. |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
most (e.g., calendar-year) corporations should continue to use the old (pre-Update) CRA positions in computing safe income for 2023 and prior taxation years |
| 9 October 2025 APFF Roundtable Q. 9, 2025-1071511C6 F - Le sous-alinéa 55(5)e)(i) L.I.R. |
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (a) |
must be direct ownership of a share of the corp by an individual or a related partnership |
| Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(i) |
QSBCS exception to s. 55(5)(e)(i) applied to the repurchase of QSBCS held by a sibling’s Holdco simultaneously with the repurchase of the other sibling’s Holdco’s non-QSBCS |
| 9 October 2025 APFF Roundtable Q. 10, 2025-1071591C6 - Application du paragraphe 220(4.5) L.I.R. à l’impôt minimum de remplacement causé par la disposition réputée prévue à l’alinéa 128.1(4)b) L.I.R.SECTION 127.5; 127.51; 127.52; 128.1(4)(b); 220(4.5) |
Income Tax Act - Section 128.1 - Subsection 128.1(4) - Paragraph 128.1(4)(b) |
gain under s. 128.1(4)(b) can produce AMT |
| Income Tax Act - Section 220 - Subsection 220(4.5) - Paragraph 220(4.5)(a) - Subparagraph 220(4.5)(a)(i) |
departure tax deferral under s. 220(4.5)(a)(i) is available for AMT payable because of s. 128.1(4)(b) |
| 9 October 2025 APFF Roundtable Q. 11, 2025-1071521C6 - Validity of a CDA election |
Income Tax Act - Section 83 - Subsection 83(2) |
a valid s. 83(2) election and the accompanying resolution must specify a dollar amount |
| 9 October 2025 APFF Roundtable Q. 12, 2025-1071531C6 F - Confirmer le traitement fiscal des Simple Agreement for Future Equity |
Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract |
conditional contractual obligation to issue shares likely was not a bond, debenture or note |
| Income Tax Act - Section 49.1 |
conversion of a SAFE into equity might not be a disposition by virtue of s. 49.1 |
| Income Tax Act - Section 51 - Subsection 51(1) |
SAFE likely is not a share, or a bond, debenture or note |
| 9 October 2025 APFF Roundtable Q. 13, 2025-1071541C6 - Irrégularité dans le calcul des pénalités lorsqu’un choix doit être produit |
Statutory Interpretation - Interpretation Act - Section 28 |
February 28 to March 31 is one month |
| Income Tax Act - Section 85 - Subsection 85(8) |
there is only one penalty month if an election due on February 28 was filed on or before March 31 of the following month |
| 9 October 2025 APFF Roundtable Q. 14, 2025-1071601C6 F - Actif utilisé principalement dans une entreprise exploitée activement (« EEA ») |
Income Tax Act - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share - Paragraph (c) - Subparagraph (c)(i) |
the equivalence of cash held to future years’ expenses is insufficient to establish that such cash was used in the business |
| 9 October 2025 APFF Roundtable Q. 15, 2025-1071571C6 F - Transfert intergénérationnel d’entreprise et transfert de la gestion |
Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(g) - Subparagraph 84.1(2.31)(g)(i) |
s. 84.1(2.31)(g)(i) accommodates a transfer of management (including part management) by a parent to both a child and a 3rd party |
| 9 October 2025 APFF Financial Planning Roundtable Q. 8, 2025-1071561C6 F - Revente précipitée et date de disposition |
Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(b) |
deferring the date of disposition of a housing unit to well after the sale date and 366 days after the acquisition date would avoid the flipped property rules |
| 9 October 2025 APFF Financial Planning Roundtable Q. 9, 2025-1071451C6 F - Règle sur les reventes précipitées et location à court terme |
Income Tax Act - Section 12 - Subsection 12(13) - Paragraph 12(13)(a) |
“housing unit” is restricted to a single housing unit |
| Income Tax Act - Section 67.7 - Subsection 67.7(1) - Residential Property |
a room or a basement can qualify as a “residential property” |
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