Income Tax Severed Letters - 2022-03-30

Ruling

2021 Ruling 2020-0874961R3 - 55(3)(a) Internal Reorganization

Unedited CRA Tags
55(3)(a)
spinoff of a portion of portfolio of DC (controlled by father) to father-controlled TCs for the children
rep that trust shareholder has not added arm's length beneficiaries, and s. 55(3)(a) accessed through father's voting control

Principal Issues: Whether the proposed reorganization meets the requirements of paragraph 55(3)(a).

Position: Yes.

Reasons: Meets legislative requirements.

Technical Interpretation - External

9 February 2022 External T.I. 2020-0873931E5 - CEE - Economic Assessments

Unedited CRA Tags
Definition of CEE in s. 66.1(6)
CEE must relate to determining the natural (e.g., physical, chemical or mechanical) characteristics of the mineral resource
Words and Phrases
quality

Principal Issues: Are expenses for determining the economic feasibility of a deposit, such as expenses for preparing pre-feasibility or feasibility studies (including expenses for determining the cut-off grade of the deposit), market studies or studies for determining the anticipated long-term price of a mineral) eligible for inclusion in the taxpayer's CEE?

Position: No.

Reasons: Textual, contextual and purposive interpretation of the law.

Technical Interpretation - Internal

9 February 2022 Internal T.I. 2020-0873931I7 - Cover Letter - Mining Expenditure Review Table

Unedited CRA Tags
Subsection 66.1(6) "Canadian exploration expense"

PRINCIPAL ISSUES: What are the types of expenses that would normally qualify as exploration costs under paragraph (f) of the definition "Canadian exploration expense" in subsection 66.1(6) in the context of a mining project?

POSITION: See attached table.

REASONS: See attached table.

9 February 2022 Internal T.I. 2020-0873932I7 F - Cover Letter - Mining Expenditure Review Table

Unedited CRA Tags
Subsection 66.1(6) "Canadian exploration expense"

PRINCIPAL ISSUES: What are the types of expenses that would normally qualify as exploration costs under paragraph (f) of the definition "Canadian exploration expense" in subsection 66.1(6) in the context of a mining project?

POSITION: See attached table.

REASONS: See attached table.