Income Tax Severed Letters - 2025-02-05

Ruling

2024 Ruling 2023-0989031R3 - QET Internal Reorganization

Unedited CRA Tags
s. 12(1)(z.2), s. 85, s. 97(2), Part XII.4

Principal Issues: (1) Will the Proposed Trust Amendments, in and by themselves, result in a disposition by the Trust of its property or in a resettlement of the Trust for the purposes of the Act? (2) Is there an income inclusion as a result of a disposition of a QET interest where the only consideration for the disposition is an assumption of reclamation obligations?

Position: (1) No, (2) No.

Reasons: The law.

Technical Interpretation - External

10 December 2024 External T.I. 2023-0973981E5 - Connecting factors test - employer’s residence

Unedited CRA Tags
81(1)(a) of the Income Tax Act and 87 of the Indian Act

Principal Issues: Is the employer’s residence a significant factor in a connecting factors test to situate on a reserve the employment income earned off-reserve by employees who are registered under the Indian Act and who live on-reserve, and thus exempt the income from tax under section 87 of the Indian Act?

Position: Not in this situation.

Reasons: Based on the facts provided and under a connecting factors test, the income earned off-reserve does not appear to be situated on a reserve.

10 June 2024 External T.I. 2023-0988421E5 - Mineral Resource Certificate

Unedited CRA Tags
Definition of "mineral resource" in subsection 248(1)

Principal Issues: Whether NRCan can certify that the principal mineral to be extracted from the lithium-bearing spodumene deposits of the taxpayer will be a principal mineral extracted from a non-bedded deposit.

Position: Yes.

Reasons: Positive Opinion provided by NRCan.

19 September 2023 External T.I. 2023-0971681E5 - Mineral Resource Certification

Unedited CRA Tags
Definition of "mineral resource" in subsection 248(1)

Principal Issues: Whether NRCan can certify that the principal mineral to be extracted from the lithium-bearing spodumene deposits of the taxpayer will be a principal mineral extracted from a non-bedded deposit.

Position: Yes.

Reasons: Positive Opinion provided by NRCan.

24 August 2023 External T.I. 2023-0971691E5 - Mineral Resource Cert - XXXXXXXXXX Project

Unedited CRA Tags
Definition of "mineral resource" in subsection 248(1)

Principal Issues: Whether NRCan can certify that the principal mineral to be extracted from the lithium-bearing spodumene deposits of the taxpayer will be a principal mineral extracted from a non-bedded deposit.

Position: Yes.

Reasons: Positive Opinion provided by NRCan.

Technical Interpretation - Internal

28 October 2024 Internal T.I. 2024-1029911I7 - Subparagraph 152(4)(b)(vii) and section 94

Unedited CRA Tags
152(4)(b)(vii); 94; ITA
Summary Under
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(vii)
s. 152(4)(b)(vii) does not apply to extend the period for adjusting the income computation of a trust that filed as a s. 94 trust
Summary Under
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) - Clause 152(4)(b)(iii)(B)
s. 152(4)(b)(iii)(B) potentially applicable to reassessment of capital gain on sale of foreign affiliate

Principal Issues: Whether subparagraph 152(4)(b)(vii) ITA can operate to extend the normal reassessment period in respect of a taxation year of a non-resident trust (deemed resident under section 94) in which the trust disposed of shares of a foreign affiliate where the purpose of the reassessment is to adjust the proceeds of disposition of the shares ?

Position: No.

Reasons: Wording of the Act.