| 2018-12-12 |
5 October 2018 APFF Roundtable Q. 11, 2018-0768821C6 F - Tax on Split Income |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) |
dividends derived from stock portfolio of Holdco excluded because stock portfolio not a related business or not a business |
| Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business - Paragraph (a) - Subparagraph (a)(i) |
stock market investing business of child's holdco not a related business as father not involved |
| 5 October 2018 APFF Roundtable Q. 12, 2018-0768831C6 F - Tax on Split Income and Partnership |
Income Tax Act - Section 96 - Subsection 96(1.8) |
having non-contributing children in a family portfolio investment partnership subject to potential challenge under ss. 74.1 and 96(1.8) |
| Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (a) - Subparagraph (a)(i) |
family partnership investing in designated stock exchange shares not subject to TOSI rules |
| Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) |
having non-contributing children as members of a family stock market partnership is subject to challenge under s. 103 |
| 5 October 2018 APFF Roundtable Q. 13, 2018-0778661C6 F - Tax on Split Income |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Arm's Length Capital |
no exclusion for arm’s length capital contribution where contribution derived from capital gain from related business |
| Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) |
amounts not derived from a business were excluded amounts |
| Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares |
returns to a spouse and older children from a Holdco in which they reinvested their Opco capital gains exemption could qualify as excluded amounts |
| 5 October 2018 APFF Roundtable Q. 14, 2018-0768851C6 F - Avantage imposable découlant de l’utilisation d’un aéronef |
Income Tax Act - Section 15 - Subsection 15(1) |
shareholder benefit from corporate aircraft reduced by an interest-free loan made by the shareholder to fund its purchase |
| 5 October 2018 APFF Roundtable Q. 15, 2018-0768861C6 F - Share exchange and statute of limitation |
Income Tax Act - Section 152 - Subsection 152(4) |
a price adjustment clause can operate re statute-barred transactions to affect a tax attribute that is used in the current year |
| General Concepts - Effective Date |
retroactive ACB adjustment under PAC to statute-barred transaction may be taken into account in a current relevant transaction |
| 5 October 2018 APFF Roundtable Q. 16, 2018-0768871C6 F - Dépenses de bureau à domicile et d’automobile |
Income Tax Act - Section 13 - Subsection 13(21) - Depreciable Property |
depreciable property must be owned |
| Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense |
payment of expenses of taxpayer by another does not preclude “incurring” by taxpayer |
| Income Tax Act - Section 9 - Nature of Income |
payment of taxpayer’s expenses by another might give rise to s. 9 or 80 inclusion |
| Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(g) |
example of proration of capped s. 13(7)(g) capital cost |
| Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A |
capital cost of co-ownership interest |
| 5 October 2018 APFF Roundtable Q. 17, 2018-0768881C6 F - entreprise exploitée activement – revenu de location |
Income Tax Act - Section 125 - Subsection 125(7) - Active Business Carried On by a Corporation |
question of fact whether a CCPC with too many employees to have a specified investment business carries on a business |
| Income Tax Act - Section 125 - Subsection 125(7) - Specified Investment Business |
principal purpose means main or chief objective |
| 5 October 2018 APFF Financial Strategies and Financial Instruments Roundtable Q. 1, 2018-0761521C6 F - Life insurance policy as share redempt. proceeds |
Income Tax Act - Section 148 - Subsection 148(7) |
more gain will be realized if an appreciated life insurance policy is distributed as redemption proceeds rather than a dividend-in-kind |
| 5 October 2018 APFF Financial Strategies and Financial Instruments Roundtable Q. 2, 2018-0765791C6 F - Tax on Split Income |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Shares - Paragraph (a) - Subparagraph (a)(i) |
shares of a rental property company potentially may qualify as excluded shares for TOSI purposes |
| 5 October 2018 APFF Financial Strategies and Financial Instruments Roundtable Q. 3, 2018-0765801C6 F - Tax on Split Income |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (e) - Subparagraph (e)(ii) |
deemed s. 104(21) capital gains retained their character as stock market gains |
| Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business - Paragraph (a) - Subparagraph (a)(ii) |
related business if children manage investment business of trust whose interest income is distributed to mother |
| Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(c) - Subparagraph 120.4(1.1)(c)(ii) |
s. 120.4(1.1)(c)(ii) exclusion where investment portfolio business of spousal trust had been carried on directly by deceased husband |
| 5 October 2018 APFF Financial Strategies and Financial Instruments Roundtable Q. 4, 2018-0765811C6 F - Tax on Split Income |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(D) |
no TOSI on net rental income of spousal trust on properties managed by son if excluded amounts |
| Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(c) - Subparagraph 120.4(1.1)(c)(ii) |
exclusion where rental portfolio of spousal trust was a directly-conducted business of deceased husband |
| 5 October 2018 APFF Financial Strategies and Financial Instruments Roundtable Q. 5, 2018-0761561C6 F - Rachat de parts en cas d’invalidité |
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