| 21 November 2017 CTF Roundtable Q. 1, 2017-0724301C6 - 21 year planning & NR beneficiary |
Income Tax Act - 101-110 - Section 107 - Subsection 107(5) |
GAAR very well may apply to s. 107(2) distribution to Canco owned by NR beneficiary |
| 21 November 2017 CTF Roundtable Q. 2, 2017-0724121C6 - Trusts and principal residence |
Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) |
right to use property of life interest housing trust would not be a right to use the house as a residence |
| 21 November 2017 CTF Roundtable Q. 3, 2017-0724021C6 - Meaning of purpose |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
QSBC purification transaction must not have any bad purpose described in s. 55(2.1)(b), as determined objectively as per Ludco |
| 21 November 2017 CTF Roundtable Q. 4, 2017-0724051C6 - Timing of deemed gain under 55(2) |
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) |
an immediate CDA addition for a non-redemption dividend subject to s. 55(2) |
| Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(c) |
immediate CDA addition for s. 55(2)(c) dividend |
| 21 November 2017 CTF Roundtable Q. 5, 2017-0726381C6 - 55(5)(f) and 55(2.3) with 55(2.1) |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
notwithstanding dividend bifurcation under s. 55(5)(f) (or 55(2.3), the s. 55(2.1)(b) purpose test is to be applied to the whole dividend |
| Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) |
bifurcated dividends are one dividend for s. 55(2.1)(b) purpose test but not under s. 55(2.1)(c) |
| Income Tax Act - Section 55 - Subsection 55(2.3) |
dividend bifurcation under s. 55(2.3) does not detract from s. 55(2.1) purpose tests being applied to whole dividend |
| 21 November 2017 CTF Roundtable Q. 6, 2017-0724071C6 - Circular calculations Part IV tax |
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) |
refunded Pt IV tax payable not reduced by application of s. 55(2) |
| Income Tax Act - Section 55 - Subsection 55(2) |
where Holdco receives a dividend subject to refundable Pt IV tax and to s. 55(2), two different dividends should be reported for Pt IV and s. 55(2) purposes |
| 21 November 2017 CTF Roundtable Q. 7, 2017-0724261C6 - CRA Update |
Statutory Interpretation - Interpretation Bulletins, etc. |
265 IT Bulletins are being replaced by Folios |
| 21 November 2017 CTF Roundtable Q. 8, 2017-0724151C6 - Principal Purpose Test |
Treaties - Multilateral Instrument - Article 7 - Paragraph 7(1) |
central CRA committee may review PPT assessments/rulings available/uncertain relevance of GAAR jurisprudence |
| 21 November 2017 CTF Roundtable Q. 9, 2017-0724191C6 - Stock Option Deduction |
Income Tax Act - 101-110 - Section 110 - Subsection 110(1.1) |
s. 110(1.1) mechanism is available where employer is exempt employer deduction denied under s. 18(1)(b) or 7(3)(b) |
| 21 November 2017 CTF Roundtable Q. 10, 2017-0724291C6 - Tax Shelters |
Income Tax Act - Section 96 - Subsection 96(2.2) |
no rulings on at risk rules’ application to tax shelter LPs |
| 21 November 2017 CTF Roundtable Q. 11, 2017-0724081C6 - ULC-LLC structures & Treaty |
Treaties - Articles of Treaties - Article 4 |
Treaty anti-hybrid rule (Art. 7(b)) rule applies to dividends paid by a ULC to two LLCs held by U.S. C-Corps |
| 21 November 2017 CTF Roundtable Q. 12, 2017-0723771C6 - Election not to be a public corporation |
Income Tax Act - Section 89 - Subsection 89(1) - Public Corporation - Paragraph (c) - Subparagraph (c)(i) |
CRA may rule that an election for a listed Target to cease to be a public corporation can be made after Target’s amalgamation |
| 21 November 2017 CTF Roundtable Q. 13, 2017-0724271C6 - Online Authorization Process |
Income Tax Act - Section 152 - Subsection 152(1) |
CRA validation of online authorization through matching with names on file |
| 21 November 2017 CTF Roundtable Q. 14, 2017-0724241C6 - Section 116 procedures for tax-deferred dispositions on foreign mergers |
Income Tax Act - Section 87 - Subsection 87(8.5) |
requirements for letter election |
| Income Tax Act - Section 116 - Subsection 116(1) |
s. 87(8.5) election with evidence of ACB will be accepted as basis for certificate |
| 21 November 2017 CTF Roundtable Q. 15, 2017-0724091C6 - Conversion from a US LP to an LLC |
Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f) |
an LLC resulting from a conversion from a US LLC has high inside and outside basis |
| 21 November 2017 CTF Roundtable Q. 16, 2017-0703891C6 - Medical assistance in dying |
Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) |
qualifying costs of medically-assisted dying can potentially qualify for the METC |
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