Tina Korovilas, Drew Morier, "Non-Corporate Vehicles in the Foreign Affiliate Context", 2018 Conference Report (Canadian Tax Foundation), 20:1 – 114

Summary Under
Tax Topics - Income Tax Act - Section 96

Substantive attributes of a partnership (p. 20:6)

[T]he court’s reasoning in Memec supports an approach to entity classification for tax...

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Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1)

Quaere whether beneficiary is beneficial owner (pp. 20:7-8)

Some commentators argue that a beneficiary of a trust is the beneficial owner of...

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Summary Under
Tax Topics - General Concepts - Ownership

Quaere whether beneficiary is beneficial owner (pp. 20:7-8)

Some commentators argue that a beneficiary of a trust is the beneficial owner of...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(11.2) - Paragraph 5907(11.2)(b)

LLCs can generate exempt earnings (pp. 20:10-11)

[T]he fundamental requirement—established in paragraph (d) of the “exempt earnings”...

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Summary Under
Tax Topics - Income Tax Act - Section 90 - Subsection 90(1)

Most pro rata corporate distributions are dividends (pp. 20:16-17)

Cangro Resources … held that for the purposes of the Act, “dividend” was...

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Words and Phrases
dividend
Summary Under
Tax Topics - Income Tax Act - Section 93.1 - Subsection 93.1(2) - Paragraph 93.1(2)(a)

Potential net taxable income inclusion as a result of pro rata FMV rule (p. 20:37)

[I]f the proportionate FMV of a member’s partnership interest...

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Summary Under
Tax Topics - Income Tax Act - Section 93.1 - Subsection 93.1(2) - Paragraph 93.1(2)(d) - Subparagraph 93.1(2)(d)(i)

S. 93.1(2)(d)(i) applies to gross amount of dividend

It seems to be a well-established and accepted position that the limitation is meant to apply...

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Summary Under
Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b)

QROC election intended to address unavailability of Reg. 5901(2)(b)(ii) election to partnerships

[A]lthough subsections 93.1(1) and (2) are meant...

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Summary Under
Tax Topics - Income Tax Act - Section 93 - Subsection 93(1.3)

Unavailability of s. 93 regime where partnership interest disposed of (p. 20:49)

[S]ubsection 93(1.3) applies only where the shares disposed of...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Excluded Property - Paragraph (e)

Narrowness of the postamble to the excluded property (EP) definition (p. 20:53)

[A]lthough the partnership postamble applies for the purposes of...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Excluded Property - Paragraph (a)

Potential qualification of partnership interest under EP – para. (a) if (e) unavailable (p. 20:55)

  • CRIC 1 owns 50 percent of the shares of an...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Excluded Property - Paragraph (c)

Initial concern re s. 95(1) – EP – para. (c) that property of the partnership could not qualify (pp. 20:56-59)

When the EP definition was...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(y)

S. 95(2)(y) does not preclude FA also being FA of partnership (p. 20:61)

The CRA has confirmed that the attribution of share ownership from the...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph. 95(2)(z)

Example of curative effect of s. 95(2)(z) (pp. 20:63-64)

In this example, Inactive FA earns interest income from Active FA. The recharacterization...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(B) - Subclause 95(2)(a)(ii)(B)(II)

Dubious textual interpretation of s. 95(2)(a)(ii)(B)(II) (“Cap B”) in 2016-0680801I7 (pp. 20:65-69)

The CRA recently considered the...

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Summary Under
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(D)

Narrow scope of s. 93.1(4)(b)/same country residence requirement (pp. 20:75-76)

[I]t appears that the only function of paragraph 93.1(4)(b) is to...

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Summary Under
Tax Topics - Income Tax Act - Section 94 - Subsection 94(1) - Exempt Foreign Trust - Paragraph (h) - Subparagraph (h)(ii) - Clause (h)(ii)(C)

Difficult application of (h) exception to security trust (pp. 20:90-92)

The following is an example of a transfer of property by an FA to an NRT,...

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