| 13 June 2017 STEP Roundtable Q. 1, 2017-0693461C6 - Specified corporate income |
Income Tax Act - Section 125 - Subsection 125(7) - Specified Corporate Income - Paragraph (b) |
CRA is not yet prepared to provide guidelines on when it will apply (b) |
| 13 June 2017 STEP Roundtable Q. 2, 2017-0693321C6 - GAAR and 21-year planning |
Income Tax Act - 101-110 - Section 104 - Subsection 104(5.8) |
GAAR generally applicable to using Canco to defer s. 104(4) deemed disposition only for lifetime of existing beneficiaries |
| Income Tax Act - Section 245 - Subsection 245(4) |
abusived distribution of trust property to corporate beneficiary to defer gain for lifetimes of current beneficaries |
| 13 June 2017 STEP Roundtable Q. 3, 2017-0693451C6 - Dual-resident estate and Article (IV) |
Treaties - Articles of Treaties - Article 4 |
double tax, not dual trust residence, generally will be addressed |
| 13 June 2017 STEP Roundtable Q. 4, 2017-0695141C6 - U.S. grantor trust |
Income Tax Act - 101-110 - Section 108 - Subsection 108(5) - Paragraph 108(5)(a) |
income from factually U.S.-resident but s. 94(3) trust was U.S.-sourced |
| Income Tax Act - Section 94 - Subsection 94(16) |
election of US-citizen/Cdn-resident beneficiary of grantor trust so as to generate FTC |
| Income Tax Act - Section 126 - Subsection 126(1) |
dual-resident individual who is subject to direct U.S. tax on income from a s. 94(3) trust can generate a FTC if the trust income is annually distributed or he elects under s. 94(16) |
| 13 June 2017 STEP Roundtable Q. 5, 2017-0693391C6 - Allocation of safe income |
|
|
| 13 June 2017 STEP Roundtable Q. 6, 2017-0693411C6 - GAAR on share redemption-55(3)(a) |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
using s. 55(3)(a) to create a high-basis redemption note is abusive even if that high basis is not used right away |
| 13 June 2017 STEP Roundtable Q. 7, 2017-0693421C6 - 55(2) and pipeline planning |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
S. 55(2) does not apply to an estate pipeline transaction |
| 13 June 2017 STEP Roundtable Q. 8, 2017-0693381C6 - Single-member disregarded U.S. LLC |
Income Tax Act - Section 125 - Subsection 125(1) |
20(12) deduction where LLC with U.S.-source income and single Canadian-resident member - or FTC if U.S. sources of income |
| Treaties - Articles of Treaties - Article 29 |
single member LLC with dual resident member could elect to be C-Corp and S-Corp, and then consider applying for relief under Art. 29(5) |
| Treaties - Articles of Treaties - Article 26 |
no relief under Art. 26(1) of US Treaty re LLC with U.S.-source income and single Canadian-resident member |
| 13 June 2017 STEP Roundtable Q. 9, 2017-0697901C6 - S-corporation agreements |
Treaties - Articles of Treaties - Article 29 |
Cdn competent authority agreement with S-Corp. extends to income of a qualified subchapter S Corp. subsidiary thereof |
| 13 June 2017 STEP Roundtable Q. 10, 2017-0693351C6 - 104(6), (13), (24) and ITTN 11 |
Income Tax Act - 101-110 - Section 104 - Subsection 104(24) |
payments by discretionary turst of alleged children's expenses must clearly be for their benefit |
| Income Tax Act - 101-110 - Section 104 - Subsection 104(6) |
a discretionary family trust may be unable to establish that expenses reimbursed by it were for the children’s benefit |
| 13 June 2017 STEP Roundtable Q. 11, 2017-0693331C6 - Substituted property of estate |
Income Tax Act - Section 70 - Subsection 70(6) |
s. 86 reorg before shares are transferred by the executors to a spousal trust will taint the s. 70(6) rollover |
| 13 June 2017 STEP Roundtable Q. 12, 2017-0693371C6 - 75(2) and T3 Reporting |
Income Tax Regulations - Regulation 204 - Subsection 204(1) |
trustee of s. 75(2) trust to issue T3 slip to contributor |
| 13 June 2017 STEP Roundtable Q. 13, 2017-0693341C6 - TFSA Audit Project |
Income Tax Act - Section 146.2 - Subsection 146.2(6) |
general principles apply for determining whether TFSA trading is a business |
| 13 June 2017 STEP Roundtable Q. 14, 2017-0697371C6 - Dedicated Telephone Service |
|
|
| 13 June 2017 STEP Roundtable Q. 15, 2017-0698971C6 - Registration of Tax Preparers |
|
|
Email this Content