Income Tax Severed Letters - 2021-12-08

Ruling

2020 Ruling 2020-0844081R3 F - Rollout of property to beneficiaries

Unedited CRA Tags
75(2), 105(1), 107(2) and 107(4.1).
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2)
s. 107(2) applicable to distribution of trust’s shares to beneficiaries followed by an immediate s. 85(1) roll into holdco controlled by father
Summary Under
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4)
a trust should distribute shares of an Amalco whose predecessor had received shares as beneficiary of another discretionary family trust before the latter’s 21-year anniversary

Principales Questions: (1) Whether subsection 107(2) will be applicable to the distribution of property from the trust to the beneficiaries? (2) Whether subsections 105(1) or 245(2) will be applicable to the proposed transactions?

Position Adoptée: (1) Yes. (2) No. Favourable rulings provided.

Raisons: (1) All four of the conditions of subsection 107(4.1) are not met. Conditions of subsection 107(2) are met. (2) Wording of the Act and previous positions.

Technical Interpretation - External

9 August 2021 External T.I. 2021-0893591E5 - EV Charging Stations and Power Storage Property

Unedited CRA Tags
Class 43.1(d)(xvii) and (xviii)

Principal Issues: 1. Is a stand-alone energy storage property which draws electricity from the grid during low-demand periods and uses it during high peak hours eligible for Class 43.1 under subparagraph (d)(xviii)? 2. Is a single charging station with 2 chargers each providing 7 kW of continuous supply of energy to charge electric vehicles eligible for Class 43.1 under subparagraph (d)(xvii)?

Position: 1. Yes; 2. Depends on the technical specifications.

Reasons: The law.