Income Tax Severed Letters - 2020-06-10

Ruling

2020 Ruling 2019-0818261R3 - Split-Up Farm Butterfly

Unedited CRA Tags
55(2), 55(3)(b), 55(3.1)

Principal Issues: Whether the butterfly dividends are exempt from 55(2) as a result of qualifying under 55(3)(b)?

Position: Yes.

Reasons: Proposed transactions meet the requirements of 55(3)(b).

Technical Interpretation - External

1 May 2020 External T.I. 2020-0846931E5 - CEWS - public institution

Unedited CRA Tags
149(1)(d) to (d.6), 149(1.1) and (1.3), 125.7(1)
Summary Under
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Public Institution - Paragraph (a)
factual tests applied in determining ownership of capital of non-share corporation
Summary Under
Tax Topics - Income Tax Act - Section 149 - Subsection 149(1) - Paragraph 149(1)(d.3)
functional approach to determining the ownership of the “capital” of a non-share corporation

Principal Issues: What criteria should be considered when determining whether a particular entity is a public institution.

Position: General criteria provided.

Reasons: The determination is a question of fact.