Income Tax Severed Letters - 2018-12-19


2017 Ruling 2015-0605161R3 - Fonds commun de placement (FCP) - Luxembourg

Unedited CRA Tags
215, Part XIII of the Act
a Luxembourg FCP was a co-ownership arrangement
Luxembourg investment mutual fund was a co-ownership arrangement

Principal Issues: What is the characterization of a particular Luxembourg FCP for the purposes of the Income Tax Act (Act)?

Position: The FCP is a contractual arrangement that is not a person or a taxpayer nor is it a partnership for the purposes of the Act and the Canada-Luxembourg Treaty.

Reasons: The FCP is an unincorporated contractual arrangement that has no legal personality and is being established such that each investor has an undivided co-ownership interest in the underlying properties of the Sub-Funds.

2017 Ruling 2017-0712731R3 - Amount of withholding tax under paragraph 212(1)(b)

CRA treats non-resident LPs as conduits for purposes of Treaty interest withholding relief

Principal Issues: Whether paragraph 3(c) of Article 11 of the UK Tax Treaty applies to reduce the amount of withholding tax to XXXXXXXXXX in respect of the portion of interest paid by Canco to a XXXXXXXXXX partnership that is included in the income of UK resident limited partners of the partnership.

Position: Yes based on the stated Facts.

Reasons: Reading of paragraph 3(c) of Article 11 of the UK Tax Treaty.

Technical Interpretation - External

7 November 2018 External T.I. 2018-0777361E5 - TOSI and dividend income, including from a trust

an estate is a blocker for accessing the TOSI excluded share exemption

Principal Issues: 1. Whether the TOSI rules will apply to a deemed dividend received by individuals on the redemption of their common shares in an investment holding company. 2. Whether TOSI will apply to a deemed dividend received by an estate and allocated to the beneficiaries.

Position: 1. Depends on the particular facts, but in this case probably not. 2. Depends on the particular facts.

Reasons: Meets technical requirements.

18 October 2018 External T.I. 2018-0768931E5 - Electronic Info Slips (Follow-up 2017-073076)

Unedited CRA Tags
Regulations 209
express consent to receiving T3 or T5 slips can be provided as part of the process of downloading them

Principal Issues: What would constitute express consent for the purposes of subsection 209(3) of the Regulations?

Position: It is question of fact. Some guidance provided.

Reasons: Reasonable interpretation. Regulations only provide limited instruction.