Finance Comfort Letters

2019 Link Affected legislation Principal topics
Dec 2 Cross-Border Surplus Stripping & Graduated Rate Estates s. 212.1(6)(b) exception to s. 212.1(6)(b) look-through rule for graduated rate estates
Sept 4 Principal Residence Exemption for Trusts s. 54 – principal residence – (c.1)(iii.1)(B) extend “principal residence” status for QDTs where an inter vivos trust
Sept 3 Deductibility of Mining Taxes s. 20(1)(v), Reg. 3900(2), s. 152(4) removal of statute-barring where increase in mining taxes
Aug 26 “Advantage”: Exclusion for Investment Management Fees “Advantage”: Exclusion for Investment Management Fees s. 207.01(1) definition of "advantage" and investment management fees of registered plans
July 29 Eligible Capital Property (ECP) Transitional Issue s. 14(1) eligible capital amount recognition grandfathering of deferred proceeds from ECP disposition
July 29 Functional currency tax reporting - currency of Japan s. 261(1) definition of ‘qualifying currency” designation of yen as qualifying currency
2018 Link Affected legislation Principal topics
May 11 Saskatchewan Pension Plan - Tax Treatment of Variable Benefit Portion s. 146(21) et seq. variable benefits paid out of specified pension plan to qualify re pension income credits and income splitting and subject to Reg. 8506
May 1 repayment of back-to-back loans under the upstream loan rules s. 90(14) deemed B2B loan repayment deemed repayment of deemed loan under s. 90(7) similarly to ss. 15(2.18) and (2.19)
2016 Link Affected legislation Principal topics
Dec 3 Foreign accrual property income resulting from the application of paragraph 95(2)(b) of the Income Tax Act to inter-affiliate payments for services s. 95(2)(b)(i)(B)(I) base erosion rule proposed extension of s. 95(2)(a)(ii)(D) safe harbor to inter-FA fees that are deemed FAPI under s. 95(2)(b)(i)(B)(I)
2015 Link Affected legislation Principal topics
Nov 16 Spousal, alter ego and similar trusts s. 104(13.4) beneficiary income inclusion s. 104(13.4)(b) not to apply unless joint election joint election by trust and graduated rate estate and deceased died before 2017 – trust allocation of post death donations to s. 104(13.4)(a) year
2014 Link Affected legislation Principal topics
Dec 23 The recent LRE amendments s. 251.2 loss restriction events s. 251.2(3)(f) safe harbour for unit redemptions – due date extensions for trust short year - loss restriction event only where actual beneficiary change [see also 2014-0534841C6 F] - application dates