Income Tax Severed Letters - 2016-02-10

Ruling

2015 Ruling 2015-0578031R3 F - Transaction papillon

CRA Tags
55(2), 55(3)(b), 55(3.1), 191, 191(2), 186(2), 186(4)

Principales Questions: Butterfly transactions of two corporations owned equally by XXXXXXXXXX.

Position Adoptée: Favourable rulings provided.

Raisons: Meets the requirements of the law.

2015 Ruling 2015-0585911R3 - Supplemental Ruling

CRA Tags
20(1)(c)

Principal Issues: Whether the Lossco being held in part indirectly by Parentco affects the independent source of income condition for the loss consolidation ruling.

Position: No.

Reasons: No affect on independent source of income.

2015 Ruling 2015-0588551R3 - Post-Mortem Planning

CRA Tags
84(2), 84.1(1), 245(2)

Principal Issues: Post-Mortem Pipeline Planning.

Position: Favourable rulings provided.

Reasons: In accordance with the provisions of the Act and our previous positions.

2015 Ruling 2015-0569861R3 - Loss consolidation arrangement

CRA Tags
20(1)(c), 111(5)

Principal Issues: Whether the LCA among the related and affiliated group is acceptable.

Position: Yes.

Reasons: The transactions fall within CRA's positions on LCAs.

Technical Interpretation - External

28 January 2016 External T.I. 2015-0617771E5 F - Bump calculation

CRA Tags
88(1)(d)
Summary Under
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) - Subparagraph 88(1)(d)(i)
future income tax liabilities not treated as obligations to pay an amount
Words and Phrases
debt

Principales Questions: Amounts to be included in 88(1)(d)(i)(B) - deferred income taxes

Position Adoptée: Not to be included

Raisons: No legal obligation to pay an amount

28 January 2016 External T.I. 2015-0624191E5 - Investment tax credit - processing facility

CRA Tags
125.1(3), 127(5), 127(9), 127(11)

Principal Issues: 1) Which activities constitute processing for ITC purposes? 2) How much of a building needs to involve processing to qualify for the ITC?

Position: 2) More than 50% of a building needs to be used for processing to qualify for the ITC.

Reasons: See below.

5 January 2016 External T.I. 2015-0622991E5 - Reasonableness of intercorporate management fees

CRA Tags
67
Summary Under
Tax Topics - Excise Tax Act - Section 170 - Subsection 170(2)
no change in policy re fees paid to managment holdcos following 6051944
Summary Under
Tax Topics - Income Tax Act - Section 67
reasonableness of management fee paid by opco to management holdco following 6051944

Principal Issues: Will CRA revisit its position on the reasonableness of management fees paid to Holdcos in light of a recent Tax Court decision?

Position: No.

Reasons: See below.

8 July 2015 External T.I. 2013-0496461E5 - Non-resident donor

CRA Tags
118.1(6), 116, 248(1)

Principal Issues: Whether a non-resident who elects under subsection 118.1(6) in respect of a donation of taxable Canadian property is required to file a Canadian tax return in the year of the donation.

Position: Yes.

Reasons: In order for the taxpayer to designate an amount in respect of the gift for purposes of the 118.1(6) election, the amount must be designated in the individual’s income tax return for the year in which the gift is made.

14 May 2015 External T.I. 2011-0423901E5 - Designation of an ERI

CRA Tags
Ontario Taxation Act 97(27), 149(1)(l)

Principal Issues: Client wishes to be designated as an Eligible Research Institute for purposes of the OBRI tax credit

Position: Review of documentation submitted appears to fulfil one of the definitions of an ERI

Reasons: Legislation

Technical Interpretation - Internal

30 November 2015 Internal T.I. 2015-0600081I7 - Adjusted income & income from Support Trust

CRA Tags
122.5, 104(13)

Principal Issues: Whether income from a support trust (a personal trust for the benefit of a person with a disability) is required to be included in the determination of “adjusted income” under subsection 122.5(1) for the purpose of determining eligibility for the provincial Newfoundland and Labrador Home Heating Rebate Program.

Position: Yes, unless the support trust is an RDSP.

Reasons: Income from the trust that is included in the beneficiary’s income is also included in the determination of “adjusted income” under subsection 122.5(1) of the Act. There does not appear to be a provision in the Act that would exclude it from adjusted income.

20 July 2015 Internal T.I. 2012-0457671I7 - Treaty triangulation - Article 15

CRA Tags
Treaties Article XV
Summary Under
Tax Topics - Treaties - Income Tax Conventions - Article 15
treaty-exemption for remuneration of NR employee employed in deemed offshore drilling PE of employer resident in 2nd treaty county

Principal Issues: Whether we look to the Canada-Employee treaty or to the Canada-Employer treaty for the definition of "permanent establishment" when applying subparagraph 2(c) of Article 15?

Position: The Canada-Employee treaty.

Reasons: For various reasons set out below and in document 2009-031995.

17 July 2015 Internal T.I. 2014-0558321I7 - Qualified Donee - XXXXXXXXXX

CRA Tags
149(1)(c)

Principal Issues: Does the Authority qualify as a municipal or public body performing a function of government for purposes of 149(1)(c) of the Act and the definition of a qualified donee in subsection 149.1(1)?

Position: Yes.

Reasons: See below.