| 3 December 2019 CTF Roundtable Q. 1, 2019-0824551C6 - Multilateral Instrument (“MLI”) |
Treaties - Multilateral Instrument - Article 7 - Article 7(1) |
“TAP” Committee, similar to the GAAR Committee, to address PPT issues |
| 3 December 2019 CTF Roundtable Q. 2, 2019-0824381C6 - Foreign taxes paid |
Income Tax Act - Section 261 - Subsection 261(2) - Paragraph 261(2)(b) |
translation of foreign taxes at same FX rate as that used for related income is acceptable |
| Treaties - Income Tax Conventions - Article 24 |
US and UK Treaties do not eliminate FTC requirement that the taxes be paid |
| Income Tax Act - Section 126 - Subsection 126(1) |
taxpayers can translate under s. 126 foreign taxes at the exchange rate applied to the related income |
| 3 December 2019 CTF Roundtable Q. 3, 2019-0824391C6 - Safe Income Determination Time |
Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(d) - SuParagraph 55(5)(d)(i) |
the TFSB of FA should be translated into Canadian dollars under s. 55(5)(d) at the safe income determination time |
| 3 December 2019 CTF Roundtable Q. 4, 2019-0824521C6 - 84.1(1)(a) v/s 129(1)(a) |
Income Tax Act - Section 129 - Subsection 129(1) |
CRA confirms its recent volte-face that s. 84.1(1)(b) dividends can generate dividend refunds |
| 3 December 2019 CTF Roundtable Q. 5, 2019-0824561C6 - 212.1 Post-mortem Pipeline Transaction |
Income Tax Act - Section 212.1 - Subsection 212.1(6) - Paragraph 212.1(6)(b) |
a pipeline transaction where there are non-resident beneficiaries currently generates Pt XIII tax |
| 3 December 2019 CTF Roundtable Q. 6, 2019-0823581C6 - 21 year planning, 107(5), and TCP |
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) |
a s. 107(2) rollout of Cdn Realtyco shares (i.e., TCP) to a NR-owned corporate beneficiary is inherently abusive |
| Income Tax Act - Section 245 - Subsection 245(4) |
abuse of ss. 107(2) to rollout private Realtyco shares to NR-owned Cdn corporate beneficiary |
| 3 December 2019 CTF Roundtable Q. 7, 2019-0824401C6 - TOSI and Inherited Property |
Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(b) - Subparagraph 120.4(1.1)(b)(ii) |
shares distributed out of an inter vivos trust on an active individual’s death were received as a consequence of death for s. 120.4(1.1)(b)(ii) purposes |
| 3 December 2019 CTF Roundtable Q. 8, 2019-0824411C6 - TOSI - Excluded Business |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(ii) |
income derived from a prior year’s sale of an excluded business is not excluded |
| 3 December 2019 CTF Roundtable Q. 9, 2019-0824421C6 - Excluded Amount-Non-related Business exception |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (e) - Subparagraph (e)(i) |
a transitional services agreement with an arm’s length purchaser can engage the TOSI rules |
| Income Tax Act - Section 120.4 - Subsection 120.4(1) - Related Business - Paragraph (a) - Subparagraph (a)(ii) |
source individual status retained after arm's length sale if continued active involvement in business |
| 3 December 2019 CTF Roundtable Q. 10, 2019-0824461C6 - Earnout payments to non-residents |
Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(v) |
reverse earnout payments generally are not subject to Pt XIII tax |
| 3 December 2019 CTF Roundtable Q. 11, 2019-0824511C6 - Common Reporting Standards |
Income Tax Act - Section 271 - Subsection 271(1) |
Canada uploads common reporting standards (CRS) info onto its systems for full-spectrum compliance use |
| 3 December 2019 CTF Roundtable Q. 12, 2019-0824531C6 - Earnout and Cost Recovery Method |
Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) |
cost-recovery method earnout can be based on the earnings of a lower-tier corporation |
| 3 December 2019 CTF Roundtable Q. 13, 2019-0824491C6 - Triangular Amalgamation |
Income Tax Act - Section 245 - Subsection 245(4) |
GAAR may apply to the use of a “Midco” to step up the tax basis of a target investment on a triangular amalgamation |
| Income Tax Act - Section 87 - Subsection 87(9) - Paragraph 87(9)(a.4) |
use of a “Midco” on triangular amalgamation “technically” avoids ss. 87(9)(a.4) and (c) limitation |
| 3 December 2019 CTF Roundtable Q. 14, 2019-0824481C6 - Replacement Property Rules |
Income Tax Act - Section 44 - Subsection 44(5) |
a replacement property can be acquired before disposing of the former property |
| Income Tax Act - Section 13 - Subsection 13(4.1) |
property acquired in advance for expansion purposes can qualify |
| 3 December 2019 CTF Roundtable Q. 15, 2019-0824501C6 - Subsection 104(13.4) and LCBs |
Income Tax Act - 101-110 - Section 104 - Subsection 104(13.4) - Paragraph 104(13.4)(c) - Subparagraph 104(13.4)(c)(i) |
there can be no interest ultimately payable to the extent that a life interest trust realizes a capital loss in the stub period following death |
| 3 December 2019 CTF Roundtable Q. 16, 2019-0824471C6 - Eligible Dividend Designation |
Income Tax Act - Section 89 - Subsection 89(14) |
where all shareholders of a private corporation are directors, an eligible dividend designation can be done through the dividend declaration |
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