Income Tax Severed Letters - 2022-02-16

Ruling

2020 Ruling 2019-0797821R3 - Cross-Border Butterfly

Unedited CRA Tags
55(1), 55(2), 55(3)(b), 55(3.1), 212.1, 212.3

Principal Issues: Whether the proposed cross-border butterfly qualify for the exemption in paragraph 55(3)(b) from the butterfly denial rule in subsection 55(2).

Position: Yes.

Reasons: Meet the statutory requirements and our prior positions and rulings on cross-border butterfly reorganizations.

Technical Interpretation - External

5 January 2022 External T.I. 2019-0802931E5 - OBRITC definition of “affiliated”

Unedited CRA Tags
Section 97 of TA; Subsections 38(7) and 38(8) of Regulation 37/09 of the TA; 251.1 of the Section 97 of TA; Subsections 38(7) and 38(8) of Regulation 37/09 of the TA; 251.1 of the Act

Principal Issues: What is the meaning of the term “affiliated” in subsection 38(7) and 38(8) of Regulation 37/09 of the Ontario Taxation Act for designation of an organization as an Eligible Research Institute (“ERI”) for purposes of the OBRITC?

Position: Ordinary meaning.

Reasons: See below.