| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 1, 2022-0936241C6 F - T1135 and situs of cryptocurrencies |
Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) |
expanded crypto disclosure may be required |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 2, 2022-0936281C6 F - police d'assurance-vie & avantage |
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures |
premiums paid by Holdcos on policies of which their jointly-owned company (Opco) is the beneficiary are non-deductible capital expenditures even if reimbursed by the Opcos |
| Income Tax Act - Section 9 - Expense Reimbursement |
premiums paid by parent on a sub’s life insurance policies are non-deductible even if reimbursed on income account |
| Income Tax Act - Section 246 - Subsection 246(1) |
taxable benefit where 2 Holdcos pay premiums on life insurance policies of which their jointly-owned sub is beneficiary unless s. 246(2) applies |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 3, 2022-0943261C6 F - Average Exchange Rate |
Income Tax Act - Section 39 - Subsection 39(1.1) |
use of average exchange rate under s. 39(1.1) is permitted |
| Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) |
use of average exchange rates for capital property dispositions not generally accommodated |
| Income Tax Act - Section 261 - Subsection 261(1) - Relevant Spot Rate |
circumscribed acceptance of using average exchange rates |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 4, 2022-0940941C6 - Stop-loss Rules |
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(f) |
superficial loss allocated on a pooled basis to shares held at the end of the 61-day period by affiliated persons |
| Income Tax Act - Section 54 - Superficial Loss |
formula for prorating superficial loss is inapplicable where the number of shares held by affiliated persons has increased at the end of the 61-day period |
| Income Tax Act - Section 40 - Subsection 40(3.3) |
suspended loss rules engaged by shareholder, and shareholder’s RRSP acquiring and then holding identical shares during the 61-day period |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 5, 2022-0936301C6 F - Guarantee fee |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.1) |
one-time fee to subsidiary for mortgaging its property as security for a bank loan to the shareholder would not qualify under s. 20(1)(e.1) |
| Income Tax Act - Section 15 - Subsection 15(1) |
no shareholder benefit where corporation receives a reasonable pledge (or “guarantee”) fee from its shareholder |
| Income Tax Act - Section 248 - Subsection 248(1) - Business |
guarantee or pledge fee is from a service and, therefore, is from an undertaking of any kind whatever |
| Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e) |
one-time fee to subsidiary for mortgaging its property as security for a bank loan to the shareholder could qualify under s. 20(1)(e) |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 6, 2022-0936311C6 F - Illness insurance policy used as collateral |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(e.1) |
critical illness insurance policy premiums on policy assigned to lender cannot be deducted under s. 20(1)(e.1) |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 7, 2022-0938221C6 F - Régime d'accession à la propriété (RAP) - rembours |
Income Tax Act - Section 146.01 - Subsection 146.01(1) - HBP Balance |
HBP balance not reduced until s. 146.01(3) repayment is made and prescribed form filed |
| Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (i) |
an HBP balance is not reduced at the beginning of the year of a contribution repayment by the repayment amount until the repayment is made |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 8, 2022-0940961C6 F - RRIF - successive deaths |
Income Tax Act - Section 146.3 - Subsection 146.3(6.2) |
s. 146.3(6.2) reduction unavailable where surviving spouse dies before payment made out of deceased's RRIF |
| Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit |
spouse of a deceased RRIF annuitant must be still alive at the time of a payment out of the RRIF in order for the designated benefit rules to apply |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 9, 2022-0940951C6 F - FRB créée par testament après 2015 |
Income Tax Act - Section 118.1 - Subsection 118.1(5) - Paragraph 118.1(5)(b) |
gift of capital interest in charitable remainder trust is considered to be made by GRE when such interest vests in the charity |
| Income Tax Act - Section 118.1 - Subsection 118.1(5.1) |
a gift by will of a capital interest in a charitable remainder trust can be claimed only by the GRE, not the deceased |
| 7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 10, 2022-0938301C6 F - Rebate on purchase of GIC |
Income Tax Act - Section 54 - Adjusted Cost Base |
broker-waived commission included in cost of GIC |
| Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) |
broker’s waiver of commission could be an inducement payment |
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