Income Tax Severed Letters - 2024-11-06

Ruling

2023 Ruling 2023-0970321R3 - Loss consolidation arrangement

Unedited CRA Tags
20(1)(c); 112(1); 88(1); 245(1)

Principal Issues: Whether a loss consolidation arrangement involving a loan to buy preferred shares for the purposes of earning income would meet the CRA's requirement for acceptable loss consolidation transactions.

Position: Yes.

Reasons: Consistent with other loss consolidation arrangements.

2022 Ruling 2022-0929431R3 F - Entity classification

Unedited CRA Tags
248(1) "corporation
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Corporation
a French société civile de placement immobilier (SCPI) is a corporation
Summary Under
Tax Topics - Income Tax Act - Section 96
French SCPI is a corporation rather than partnership

Principales Questions: Whether a French société civile de placement immobilier is a partnership or a corporation for Canadian tax purposes.

Position Adoptée: A “société civile de placement immobilier” is viewed as a corporation for Canadian purposes.

Raisons: The characteristics of a “société civile de placement immobilier” more closely resemble a corporation than other forms of business association under Canadian commercial law.