Income Tax Severed Letters - 2025-03-05

Ruling

2022 Ruling 2021-0911791R3 F - Single-wing butterfly - Investment company

Unedited CRA Tags
55(2), 55(3)(b), 55(3.1)

Principal Issues: Does the paragraph 55(3)(b) exception apply to the Proposed Transactions such that the dividends resulting in the Proposed Transactions are not re-characterized under subsection 55(2)?

Position: Yes, favourable rulings given.

Reasons: The proposed transaction meets the statutory requirements of paragraph 55(3)(b).

Technical Interpretation - External

22 January 2025 External T.I. 2023-0980641E5 - Noncash honorariums provided Indigenous individual

Unedited CRA Tags
Income Tax Act, 9(1); 81(1)(a); 153(1)(g), Income Tax Regulations, 200(1); 237(2), Indian Act: 87

Principal Issues: 1. Are the honorariums and non-cash items provided to Indigenous individuals taxable?
2. What are the reporting requirements for the person providing the honorariums and non-cash items?

Position: 1. Question of fact: Yes, if they are for services performed off-reserve; No if they are windfalls, gifts or for services performed on-reserve.
2. If they are payments for services, the amounts in excess of $500 annually should be reported on a T4A or T1204 slip.

Reasons: 1. See response.
2. See response.

23 April 2024 External T.I. 2024-1004511E5 - AITC and fuel production

Unedited CRA Tags
127(9) “investment tax credit”, “qualified property”, “qualified resource property”, “specified percentage”, 127(11), 248(1) “Canadian field processing”, Reg. 4600
Summary Under
Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property - Paragraph (c) - Subparagraph (c)(i)
processing of fuel could constitute “processing” goods
Words and Phrases
processing
Summary Under
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29
Tenneco and Repsol followed re meaning of “processing"

Principal Issues: Whether the cost of new buildings and equipment used in the production of fuel for sale would be eligible for the Atlantic Investment Tax Credit.

Position: Depends on the particular facts and circumstances.

Reasons: See below.