| 2016-12-14 |
6 February 2015 Internal T.I. 2015-0566681I7 F - Redevances perçues d'avance |
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(a) |
irrevocable royalty prepayment under s. 12(1)(a) or 9 |
| Income Tax Act - Section 9 - Timing |
lump sum irrevocable prepayment of contingent future royalties fully included |
| 2016-12-07 |
18 October 2016 External. T.I. 2015-0608051E5 F - Emigration of a trust |
Income Tax Act - Section 2 - Subsection 2(1) |
Fundy Settlement test may differ from residence of trustees |
| Income Tax Act - Section 220 - Subsection 220(4.5) |
emigrating trust can elect to defer payment of the exit tax |
| 2016-11-30 |
7 October 2016 APFF Roundtable Q. 1A, 2016-0652951C6 F - Penalty late filed election-subsection 85(8) |
Income Tax Act - Section 85 - Subsection 85(8) |
penalty calculated on a global basis |
| 7 October 2016 APFF Roundtable Q. 1B, 2016-0652761C6 F - T4A filing |
Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(g) |
limited exceptions to T4A reporting |
| Income Tax Regulations - Regulation 200 - Subsection 200(2) |
no expanded relief from the broad T4A reporting requirements |
| 7 October 2016 APFF Roundtable Q. 1C, 2016-0652771C6 F - T106 and multiple year ends |
Income Tax Act - Section 231.1 - Subsection 233.1(2) |
acquisition of control generally will not generate additional T106 filings |
| 7 October 2016 APFF Roundtable Q. 2, 2016-0652841C6 F - Changement partiel d’usage - immeuble locatif et résidentiel |
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) |
switch between which triplex units used for personal/family rental or 3rd-party rental did not trigger change of use |
| Income Tax Act - Section 54 - Principal Residence |
triplex contained separate housing units |
| Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) |
on sale of triplex, individual can claim exemption only for years in which particular units were used personally or by children |
| 7 October 2016 APFF Roundtable Q. 3, 2016-0652851C6 F - Annulation d'une promesse d'achat sur une maison |
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) |
damages for breach of covenant to purchase principal residence not covered |
| Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(b) |
no capital loss for damages paid for breach of purchase obligation |
| 7 October 2016 APFF Roundtable Q. 4, 2016-0652801C6 F - Salary Deferral Arrangement |
Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangements - Paragraph (k) |
no backdating as of the year end |
| 7 October 2016 APFF Roundtable Q. 5, 2016-0652861C6 F - Véhicules électriques - rabais |
Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A |
installation cost included |
| Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(e) |
use of manufacturer’s electricity-use standard |
| Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A |
cost not reduced under general principles by government assistance |
| Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) |
vehicle assistance paid indirectly (to dealer) covered |
| Income Tax Act - Section 6 - Subsection 6(2) |
Quebec government assistance does not reduce cost of purchased vehicle, but treated as compensation to dealer-lessor prorated over term of lease |
| 7 October 2016 APFF Roundtable Q. 6, 2016-0652821C6 F - Graduated Rate Estate - Total Charitable Gifts |
Income Tax Act - Section 84.1 - Subsection 84.1(1) |
Poulin is consistent with CRA's previous statements on employee buycos |
| Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) |
touchstones for accommodation party |
| Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(ii) |
right of GREs to carry forward donations for five years |
| 7 October 2016 APFF Roundtable Q. 7, 2016-0652971C6 F - Paragraph 251(5)(b) and subsection 256(1.4) |
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) |
right to find 3rd party purchaser |
| Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(ii) |
may include right arising after triggering of event over which no control |
| Income Tax Act - Section 256 - Subsection 256(1.4) - Paragraph 256(1.4)(a) |
does not include right to find a 3rd party purchaser for another’s shares |
| 7 October 2016 APFF Roundtable Q. 9, 2016-0652921C6 F - Résidence - actif utilisé / Residence - asset used |
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Share of the Capital Stock of a Family Farm or Fishing Corporation |
primary employee use qualifies farm house |
| Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share |
farm house must be more than 50% used by farm employees to qualify |
| 7 October 2016 APFF Roundtable Q. 10, 2016-0652931C6 F - Bien agricole admissible-saisine par succession |
General Concepts - Ownership |
estate owns its property |
| Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(a) - Subparagraph 110.6(1.3)(a)(i) |
3 owners if farm passes from father to estate to son |
| 7 October 2016 APFF Roundtable Q. 11, 2016-0652941C6 F - Contrat de location / Capital lease |
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share |
stipulated rights of lessee should be valued for QSBCS purposes |
| Income Tax Act - Section 248 - Subsection 248(1) - Small Business Corporation |
FMV of rights under a lease must be included |
| 7 October 2016 APFF Roundtable Q. 12, 2016-0655911C6 F - Partial Leveraged Buy-Out and Monetization of ACB |
Income Tax Act - Section 84 - Subsection 84(2) |
amalgamation does not cause reorg etc. of business |
| 7 October 2016 APFF Roundtable Q. 13, 2016-0652981C6 F - Allocation of the safe income on hand |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
business income earned by a corporation following a subscription for a separate class of discretionary dividend shares could be allocated to those shares |
| 7 October 2016 APFF Roundtable Q. 14, 2016-0655921C6 F - Safe income on hand - Preferred shares |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
fixed dividends on full-ACB prefs did not come out of SIOH |
| Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
whether dividends paid on non-participating prefs engage s. 55(2) is a question of fact |
| 7 October 2016 APFF Roundtable Q. 15, 2016-0652991C6 F - Application of subsection 55(2) - holding period |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
stock dividend of nominal value discretionary shares to shift value to an affiliate |
| 7 October 2016 APFF Roundtable Q. 16, 2016-0653001C6 F - Safe income and freeze preferred shares |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
application of safe income on hand to dividends paid on estate freeze prefs |
| 7 October 2016 APFF Roundtable Q. 17, 2016-0652781C6 F - Functional currency and acquisition of control |
Income Tax Act - Section 261 - Subsection 261(9) - Paragraph 261(9)(a) |
exclusion of pre-transition debts from s. 111(4) |
| Income Tax Act - Section 111 - Subsection 111(4) - Paragraph 111(4)(e) |
FX gains or losses on pre-transition debts not affected |
| Income Tax Act - Section 40 - Subsection 40(10) |
exclusion of pre-transition debts |
| 7 October 2016 APFF Roundtable Q. 18, 2016-0652791C6 F - Taxable Canadian property and Part XIII tax |
Income Tax Act - Section 119 |
property must have been TCP continuously from the time of emigration |
| 7 October 2016 APFF Roundtable Q. 19, 2016-0655841C6 F - Reimbursement of attributed income |
Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) |
excess disposition proceeds not required to be repaid |
| Income Tax Act - Section 74.1 - Subsection 74.1(1) |
no domestic secondary adjustment doctrine |
| Income Tax Act - 101-110 - Section 103 - Subsection 103(1) |
no obligation to repay income reallocated to other partner |
| 7 October 2016 APFF Roundtable Q. 20, 2016-0655831C6 F - Employee Buycos and the Poulin Case |
Income Tax Act - Section 84.1 - Subsection 84.1(1) |
Poulin accepted |
| Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) |
Poulin distinction between accommodation parties and tax advantaged arm’s length dealings accepted |
| 7 October 2016 APFF Roundtable Q. 21, 2016-0655901C6 F - Section 7 and bonus paid in share |
Income Tax Act - Section 7 - Subsection 7(1.1) |
7(1.1) applicable to non-discretionary bonus payable in shares |
| Income Tax Act - Section 84 - Subsection 84(1) - Paragraph 84(1)(b) |
PUC of shares issued in satisfaction of bonus equal to bonus amount |
| Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) |
s. 7 can govern bonuses paid in shares where discretion ceases prior to the issuance |
| 7 October 2016 APFF Financial Strategies and Financial Instruments Roundtable Q. 1, 2016-0651771C6 F - Critical Illness Insurance |
Income Tax Act - Section 15 - Subsection 15(1) |
benefit on gratuitous transfer of critical illness policy by corporation to its shareholder |
| 7 October 2016 APFF Financial Strategies and Financial Instruments Roundtable Q. 2, 2016-0651711C6 F - RRIF, Transfer of designated benefit |
Income Tax Act - Section 146.3 - Subsection 146.3(6.11) |
computation of eligible amount following year of death |
| Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(iii) |
capital loss recognition on land underlying duplex used 40% personally |
| Income Tax Regulations - Regulation 1102 - Regulation 1102(2) |
Reg. 1102(2) deems building to be separate from land and does not bifurcate the land |
| Income Tax Act - Section 54 - Personal-Use Property |
land underlying duplex used 40% personally is not personal-use property |
| 7 October 2016 APFF Financial Strategies and Financial Instruments Roundtable Q. 3, 2016-0651761C6 F - Transfer of a Life Insurance Policy |
Income Tax Act - Section 148 - Subsection 148(7) - Paragraph 148(7)(a) |
s. 148(7)(a) prevails over s. 69(1)(b) and 52(2), but not s. 69(5) |
| 7 October 2016 APFF Financial Strategies and Financial Instruments Roundtable Q. 4, 2016-0651791C6 F - Choix 45(2) et (3) - immeuble à logements |
Income Tax Act - Section 45 - Subsection 45(3) |
invalidity of s. 45(3) elections on duplex units applied only for changes of use after February 21, 2012 |
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