| 4 June 2024 STEP Roundtable Q. 1, 2024-1007861C6 - Spousal Trust and Contribution |
Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a) |
a contribution to a spousal trust after the spouse’s death would not cause it to cease to be a spousal trust or affect the deemed disposition dates for its property |
| 4 June 2024 STEP Roundtable Q. 2, 2024-1003641C6 - Salary to Family Members |
Income Tax Act - Section 248 - Subsection 248(28) |
s. 248(28) applied where overpayment of wages was a s. 15(1) benefit |
| Income Tax Act - Section 15 - Subsection 15(1.4) - Paragraph 15(1.4)(c) |
application of s. 15(1.4)(c) avoided where s. 5 inclusion to taxpayer |
| Income Tax Act - Section 15 - Subsection 15(1) |
s. 248(28) applied to avoid double taxation under s. 15(1) and s. 5 |
| 4 June 2024 STEP Roundtable Q. 3, 2024-1003471C6 - Acquisition of Control |
Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) |
an individual exercising power of attorney for a controlling incapacitated shareholder does not have de jure control of the corporation |
| 4 June 2024 STEP Roundtable Q. 4, 2024-1003461C6 - Acquisition of Control |
Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) |
the replacement of an executor due to death or inability does not result in a loss restriction event |
| 4 June 2024 STEP Roundtable Q. 5, 2024-1003541C6 - Post-Mortem Planning and GAAR |
Income Tax Act - Section 245 - Subsection 245(4) |
no GAAR issues re conventional pipelines and s. 164(6) loss carrybacks |
| 4 June 2024 STEP Roundtable Q. 6, 2024-1003601C6 - Succession of a Family Business |
Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(g) - Subparagraph 84.1(2.32)(g)(ii) |
the activity test in s. s. 84.1(2.31)(f)(ii) or 84.1(2.32)(g)(ii) can be met by successive children and regarding only one out of multiple businesses |
| Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(f) - Subparagraph 84.1(2.31)(f)(ii) |
activity threshold can be satisfied by successive children and in relation to only one out of multiple businesses |
| 4 June 2024 STEP Roundtable Q. 7, 2024-1003611C6 - AET and Subsection 75(2) |
Income Tax Act - Section 75 - Subsection 75(2) |
the settlor can be one of three trustees of an alter ego trust without engaging s. 75(2) |
| 4 June 2024 STEP Roundtable Q. 8, 2024-1007841C6 - Disposition of Property Held in a Bare Trust |
Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) - Subparagraph (b)(v) |
(b)(v) inapplicable to the winding-up of a bare trust |
| Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (e) |
notwithstanding (b)(v) of “disposition,” the winding up of a bare trust does not cause a disposition of its property |
| Income Tax Act - Section 248 - Subsection 248(1) - Disposition |
a disposition by a bare trust is not a “disposition” absent s. (b)(v) or (k) of that definition applying |
| Income Tax Act - Section 150 - Subsection 150(1.1) - Paragraph 150(1.1)(b) - Subparagraph 150(1.1)(b)(ii) |
a disposition by a bare trust, or the trust’s winding-up, generally is not a disposition under the ITA |
| 4 June 2024 STEP Roundtable Q. 9, 2024-1020351C6 - Paragraph 150(1.2)(b) and GICs |
Income Tax Act - Section 150 - Subsection 150(1.2) - Paragraph 150(1.2)(b) |
holding any GIC would preclude a trust from qualifying under s. 150(1.2)(b) |
| 4 June 2024 STEP Roundtable Q. 10, 2024-1010241C6 - Update on trust / estate issues |
Income Tax Act - 101-110 - Section 104 - Subsection 104(6) - Paragraph 104(6)(b) |
an amount paid by a trust to a beneficiary is not deductible under s. 104(6) if it was not payable under the trust deed |
| 4 June 2024 STEP Roundtable Q. 11, 2024-1003491C6 - Foreign Tax Credit for US Estate Tax |
Treaties - Income Tax Conventions - Article 29B |
application of Art XXIX-B(6)(a) of the Canada-US treaty where s. 70(5) gain realized on US public company shares and US realty |
| 4 June 2024 STEP Roundtable Q. 12, 2024-1003521C6 - Gift from NR Relative |
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) - Subparagraph 13(7)(e)(ii) |
s. 13(7)(e)(ii) applies to a cross-border non-arm’s length gift of a foreign building |
| 4 June 2024 STEP Roundtable Q. 13, 2024-1007851C6 - DRT and Section 216 |
Income Tax Act - Section 94 - Subsection 94(3) - Paragraph 94(3)(g) |
although resident tenant required to withhold on rent to s. 94(3), s. 94(3)(g) applies to such withholding |
| Income Tax Act - Section 94 - Subsection 94(3) - Paragraph 94(3)(a) - Subparagraph 94(3)(a)(viii) |
a Canadian payer must withhold on rent paid to a s. 94 deemed resident trust |
| Income Tax Act - Section 94 - Subsection 94(3) - Paragraph 94(3)(a) - Subparagraph 94(3)(a)(ii) |
s. 94(3)(a) trust computes its income from a Canadian rental property under normal Part I rules, but must observe s. 104(7.01) |
| 4 June 2024 STEP Roundtable Q. 14, 2024-1011571C6 - T3 Trust Instalments |
Income Tax Act - Section 156 - Subsection 156(1) |
no change to administrative practice of not charging interest or penalties for insufficient instalment payments by trusts |
| 4 June 2024 STEP Roundtable Q. 15, 2024-1007831C6 - Online Access - Trust Compliance |
General Concepts - Audit, Filing and Assessment Procedure |
documents which may be submitted to My Trust Account |
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