| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 1, 2023-0976911C6 F - CELIAPP - Changement d'usage / FHSA - Change in use |
Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (d) |
a recent change of a home from rental to principal-residence use cannot ground an FHSA withdrawal |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 2, 2023-0978631C6 F - CELIAPP - Autoconstruction d'une habitation - FHSA - Self-construction |
Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (c) |
written agreement for construction before October 1 could be satisfied with agreements with trades by self-constructing individual |
| Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal - Paragraph (a) |
acquisition of home is when it becomes habitable |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 3, 2023-0976921C6 F - CELIAPP - Acquisition d'une quote-part d'une habitation admissible / FHSA - Acquisition of a share of a qualifying home |
General Concepts - Ownership |
reference to acquiring a qualifying home includes acquiring a co-ownership interest |
| Income Tax Act - Section 146.6 - Subsection 146.6(1) - Qualifying Withdrawal |
a qualifying withdrawal from an FHSA can fund the purchase of a co-ownership interest in a qualifying home |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 4, 2023-0990531C6 F - Life insurance policy transfer |
Income Tax Act - 101-110 - Section 106 - Subsection 106(3) |
s. 106(3) could apply to a distribution of a dividend in kind |
| Income Tax Act - 101-110 - Section 107 - Subsection 107(2) |
s. 107(2) inapplicable to distribution in satisfaction of a trust debt owing to the beneficiary |
| Income Tax Act - Section 148 - Subsection 148(7) |
a trust distribution of a life insurance policy to a beneficiary was made for FMV consideration equal to the part of the beneficiary’s capital or income interest that is satisfied |
| 2 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 5, 2023-0978561C6 F - Partnership – distribution of a life insurance police |
Income Tax Act - Section 248 - Subsection 248(35) |
holding of policy by partnership prior to its distribution to partner does not count towards the latter’s holding period |
| Income Tax Act - Section 148 - Subsection 148(7) |
s. 98(2) generally prevails over s. 148(7) |
| Income Tax Act - Section 98 - Subsection 98(2) |
disposition of distributed life insurance policy at FMV pursuant to s. 98(2), rather than s. 148(7) applying |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 6, 2023-0994241C6 F - Consequences of Transfer of DSUs to a corporation |
Income Tax Act - Section 54 - Capital Property |
deferred share units were not capital property |
| Income Tax Act - Section 85 - Subsection 85(1.1) |
DSU rights are not eligible property and not capital property |
| Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement |
transfer of DSU to corporation would cause it to cease to qualify, perhaps retroactively |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 7, 2023-0994231C6 F - Additional reporting - trusts subject to exception |
Income Tax Regulations - Regulation 204.2 - Subsection 204.2(1) |
trusts not coming within the preamble to ITA s. 150(1.2) must still provide the additional Reg. 204.2(1) information if not excepted under ss. 150(1.2)(a) to (o) |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 8, 2023-0976901C6 F - RPP survivor benefit flowing through a GRE |
Income Tax Act - Section 60 - Paragraph 60(j) |
flow-through of pension benefit by estate to surviving spouse through cash and note issuance/ no FHSA deduction for s. 104(27) amount |
| Income Tax Act - 101-110 - Section 104 - Subsection 104(24) |
income can be distributed to estate beneficiary by issuing a demand note to her |
| Income Tax Act - 101-110 - Section 104 - Subsection 104(27) |
full flow-through of a pension benefit received by the estate to the surviving spouse for s. 60(j) purposes by the estate issuing her a note |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 9, 2023-0976941C6 - Withholding on registered plans |
Treaties - Income Tax Conventions - Article 18 |
RRSP/ RRIF payments are “pensions” under Art. XVIII rather than “other income” under Art. XXII of the US Convention, but must be "periodic pension payments" for 15% rate to apply |
| Treaties - Income Tax Conventions - Article 22 |
reduced 15% withholding rate under Art. 22 of the Canada-U.S. Convention applies to TFSA and RDSP trusts |
| 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 10, 2023-0978651C6 - Exchange rate for a stripped interest coupon |
Income Tax Act - Section 261 - Subsection 261(2) - Paragraph 261(2)(b) |
deemed interest on an FX-denominated stripped coupon should be translated on a daily basis |
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