Income Tax Severed Letters - 2025-04-09

Ruling

2024 Ruling 2023-0998291R3 F - Multi-wings split-up net asset butterfly 55(3)(b)

Unedited CRA Tags
55(2), 55(3)(b), 55(3.1), 80, 186(4), 187.1, 191.1, 245(2)
Summary Under
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Distribution
split-up butterfly between a divorced couple where excess debt is allocated to land rather than building to produce capital gains treatment
Summary Under
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(b)
excess debt allocated on s. 85(1) transfer of land and building to the land so as to produce capital gains rather than recapture

Principal Issues: Whether the proposed transactions meet the requirements of paragraph 55(3)(b).

Position: Yes.

Reasons: Based on the Act, CRA publications and taxpayer representations.

Technical Interpretation - Internal

27 January 2025 Internal T.I. 2024-1025011I7 - Foreign Mortgage Insurance Plan

Unedited CRA Tags
12.2(1), 128.1(1), 138(12), 148, 233.3
Summary Under
Tax Topics - Income Tax Act - Section 12.2 - Subsection 12.2(1)
deemed acquisition of policy on immigration would affect ACB for purposes of any s. 12.2(1) computation

Principal Issues: Tax treatment of a Dutch mortgage savings policy acquired by a non-resident individual when the individual later immigrates to Canada.

Position: General comments provided.

Reasons: Unable to provide a definitive response due to insufficient information. When a policy is issued by a non-resident insurer, the required information to determine the tax implications is usually not available.

17 January 2025 Internal T.I. 2024-1029791I7 F - SSUC - Rémunération de la haute direction / CEWS -

Unedited CRA Tags
125.7(1), 125.7(2), 125.7(14), 125.7(14.1)
Summary Under
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Executive Remuneration
no adjustments are made to an eligible entity's Statement of Executive Compensation for NEOs filed pursuant to NI 51-102 for CEWS repayment purposes
Summary Under
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(14)
repayment based on NI 51-102 statements, without adjustments

Principales Questions: Est-ce que la rémunération de la haute direction, au sens de l’alinéa a) de la définition de la « rémunération de la haute direction » au paragraphe 125.7(1), correspond à la somme totale qui est déclarée dans la Déclaration de la rémunération de la haute direction de l’entité pour les membres de la haute direction visés sans ajustement? / Whether executive remuneration, as defined in paragraph (a) of the definition of « executive remuneration » in subsection 125.7(1), is the total amount of compensation that is reported in the eligible entity’s Statement of Executive Compensation for Named Executive Officers without adjustment.

Position Adoptée: Oui / Yes.

Raisons: Libellé de la Loi / Wording of the Act.