CRA releases the 2024 IFA Roundtable
18 September 2024 - 11:25pm
Email this ContentCRA has provided its official written responses to the questions posed at the May 15, 2024 IFA Roundtable. For convenience of reference, the table below provides links to those answers and to summaries that we prepared in May.
| Topic | Descriptor | |
|---|---|---|
| 15 May 2024 IFA Roundtable Q. 1, 2024-1007651C6 - Principal purpose test and the UK-Canada Tax Treaty | Treaties - Income Tax Conventions - Article 10 | marginally increasing a shareholding to access the Treaty-reduced rate likely would not engage the PPT |
| Treaties - Multilateral Instrument - Article 7 - Article 7(1) | a non-resident’s increasing its voting shareholding in Canco to access the Treaty-reduced dividend withholding rate likely does not engage the PPT | |
| 15 May 2024 IFA Roundtable Q. 2, 2024-1007541C6 - Foreign Entity Classification | Income Tax Act - Section 248 - Subsection 248(1) - Corporation | treatment of Luxembourg SCS or SCSp as a partnership |
| Income Tax Act - Section 96 | Luxembourg SCS or SCSp may be a partnership | |
| 15 May 2024 IFA Roundtable Q. 3, 2024-1007631C6 - Cash Pooling and Notifiable Transactions | Income Tax Act - Section 237.4 - Subsection 237.4(1) - Advisor | whether a professional firm is an advisor turns inter alia on its degree of responsibility for the tax advice etc. |
| Income Tax Act - Section 237.4 - Subsection 237.4(4) | full disclosure of one transaction (e.g., an interest payment) for the series of transactions is sufficient | |
| Income Tax Act - Section 237.4 - Subsection 237.4(2) | cash-pooling arrangement is substantially similar to the back-to-back designated transaction if the Canadian taxpayer as debtor does not withhold on the basis of the higher withholding rate for the ultimate lender | |
| 15 May 2024 IFA Roundtable Q. 4, 2024-1007571C6 - Late-filed PLOI election | Income Tax Act - Section 212.3 - Subsection 212.3(12) | revised procedures for the filing of late PLOI elections |
| Income Tax Act - Section 15 - Subsection 15(2.12) | revised procedure for filing late PLOI election under s. 15(2.12) | |
| 15 May 2024 IFA Roundtable Q. 5, 2024-1007581C6 - Late-filed PLOI election and reassessment of the affected taxation year(s) | Income Tax Act - Section 212.3 - Subsection 212.3(12) | late filing of PLOI election is coupled with an extended reassessment period for the s. 17.1(1) deemed interest |
| Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) - Clause 152(4)(b)(iii) | a late-filing of a PLOI election does not cause the related deemed interest to be statute-barred | |
| 15 May 2024 IFA Roundtable Q. 6, 2024-1007591C6 - PLOI Election Administrative Relief | Income Tax Act - Section 15 - Subsection 15(2.11) - Paragraph 15(2.11)(d) | CRA effectively indicates that to disengage a single PLOI election, the loan agreement must be replaced |
| Income Tax Act - Section 212.3 - Subsection 212.3(11) - Paragraph 212.3(11)(c) | irreversibility of choice to make a single election unless a separate loan agreement is entered into | |
| 15 May 2024 IFA Roundtable Q. 7, 2024-1007641C6 - Principal Purpose Test in the Multilateral Instrument | Treaties - Income Tax Conventions - Article 10 | application of PPT where Treaty-resident pure holdco with ultimate Treaty-resident parent received Canco dividends |
| Treaties - Multilateral Instrument - Article 7 - Article 7(1) | PPT application to a treaty-reduced dividends of Canco paid to a pure Holdco with an ultimate Treaty-resident parent |