Income Tax Severed Letters - 2024-05-08

Ministerial Correspondence

26 October 2023 Ministerial Correspondence 2023-0984161M4 - Motor vehicle allowance rates for small businesses

Unedited CRA Tags
Reg 7306

Principal Issues: Correspondence from federal MP asking the Minister to increase the per-kilometre rates that the CRA usually considers reasonable.

Position: The per-kilometre rates that the CRA usually considers reasonable are amounts prescribed in section 7306 of the Income Tax Regulations. However, depending on the facts of a particular situation, other amounts may also be considered to be reasonable.

Reasons: See above.

Technical Interpretation - External

30 January 2024 External T.I. 2024-1005011E5 - Safe income

Unedited CRA Tags
55(2)
dividend income that has not been subject to tax should not constitute safe income, and double taxation can be avoided with proper structuring

Principal Issues: Clarification on various topics discussed in paper "CRA Update on Subsection 55(2) and Safe Income".

Position: See below.

Reasons: See below.