| 2017-01-25 |
19 December 2016 External T.I. 2016-0643191E5 F - Deferred Salary Leave Plan (DSLP) |
Income Tax Act - Section 5 - Subsection 5(1) |
salary advance arrangement results in recognition when advances made rather than when earned |
| Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(n) |
deduction where “repayment” of advances made during employee leave |
| Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) |
comprehensive discussion, including: seasonal workers cannot participate; and DSLP can be married with a salary advance arrangement |
| 22 December 2016 External T.I. 2015-0608201E5 F - Capital distribution from trust & NR4 |
Income Tax Regulations - Regulation 202 - Regulation 202(1) - Regulation 202(1)(c) |
all capital distributions made by Canadian-resident trusts to a non-resident beneficiaries must be reported on NR4s |
| Income Tax Act - Section 212 - Subsection 212(11) |
capital distributions other than of capital dividends not subject to Part XIII tax |
| 2015-12-09 |
9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 1, 2015-0588941C6 F - Critical illness insurance |
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) |
critical illness policy transferred free of capital gains tax |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 2, 2015-0595841C6 F - Stock option, disposition, newly-acquired security |
Income Tax Act - Section 7 - Subsection 7(1.31) |
shares acquired on option exercise must be disposed of in one transaction to avoid basis averaging |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 3, 2015-0588951C6 F - Deductibility of interest – ss. 20.1(1) |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) |
no source disappearance where interest-free advance to sub is forgiven |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 4, 2015-0588971C6 F - T1135 and voluntary disclosure |
Income Tax Act - Section 220 - Subsection 220(3.1) |
currently no waiver of T1135 penalty before 10 years previously |
| Income Tax Act - Section 162 - Subsection 162(7) |
CRA is studying whether the $2,500 penalty for late T1135 filings applies automatically |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 5, 2015-0588981C6 F - Foreign currency stock market transactions |
Income Tax Act - Section 261 - Subsection 261(2) |
CRA considers that NYSE stock trades should be translated at the noon exchange rate on the settlement date |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 6, 2015-0595851C6 F - Income of a trust payable to a beneficiary |
Income Tax Act - 101-110 - Section 104 - Subsection 104(24) |
CRA will not accommodate a trust which merely distributes all it can |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 7, 2015-0589001C6 F - Charities Registration Process |
Income Tax Act - Section 248 - Subsection 248(1) - Registered Charity |
complete applications may speed application processing by four months |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 8, 2015-0593091C6 F - Assumption of a debt by a beneficiary of a trust |
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) |
CRA generally accepts that loss of a s. 107(2) rollover can be avoided, where a trust owes debt to a capital beneficiary, by refinancing the debt with a bank |
| 9 October 2015 APFF Financial Strategies and Financial Instruments Roundtable Q. 9, 2015-0596611C6 F - Transfer 70(6) |
Income Tax Act - Section 70 - Subsection 70(6) |
non-application if replacement property distributed to spousal trust |
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