Income Tax Severed Letters - 2021-11-10

Ruling

2020 Ruling 2020-0850251R3 - Single-wing split-up butterfly

Unedited CRA Tags
55(2)

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

Position: Yes.

Reasons: Proposed transactions meet the requirements of the law.

Technical Interpretation - Internal

27 September 2021 Internal T.I. 2021-0877001I7 - CERS - Rent paid for unoccupied office space

Unedited CRA Tags
125.7
Summary Under
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Property
an unoccupied property was not a qualifying property
Words and Phrases
use

Principal Issues: Whether unoccupied office space in a building that was previously used by an eligible entity can be a qualifying property for a qualifying period for purposes of the CERS.

Position: Question of fact but in this case, likely not.

Reasons: To be “qualifying property”, a real or immovable property must be used in the course of an eligible entity’s ordinary activities.

20 September 2021 Internal T.I. 2021-0883531I7 - CERS - Unexploited Rental Space

Unedited CRA Tags
20(1)(p); 95(2); 125.7; 110.6; 248(1)

Principal Issues: Is a rental space that was intended to be used as a XXXXXXXXXX but is currently unexploited due to the Covid-19 pandemic capable of being “qualifying property”?

Position: Question of fact.

Reasons: To be “qualifying property”, a real or immovable property must be used in the course of the taxpayer's ordinary activities. It is a question of fact as to whether an unexploited rental space is capable of being used in such a manner. However, in the specific context of the given scenario, it may be reasonably concluded that the unexploited rental space was not used, or is not being used, in the course of the taxpayer's ordinary activities.