Income Tax Severed Letters - 2025-07-02

Technical Interpretation - External

2 May 2025 External T.I. 2024-1021711E5 - First Time Home Buyers Credit mobile home

Unedited CRA Tags
118.05(1),118.05(2),118.05(3), 146.01(1)

Principal Issues: Is a mobile home on leased land a qualifying home for HBTC?

Position: It depends.

Reasons: Subsection 118.05(2) of the Act requires the individual's interests (or for civil law, right) in the qualifying home to be registered in accordance with the land registration system or other similar system applicable where it is located, for the property to be considered as a qualifying home for purposes of claiming HBTC.

29 April 2025 External T.I. 2024-1036641E5 F - Relevant Group Entity

Unedited CRA Tags
84.1(2.31)(c)(iii) ; 84.1(2.32)(c)(ii)"Relevant Group Entity"
Summary Under
Tax Topics - Income Tax Act - Section 84.1 - Subsection 84.1(2.31) - Paragraph 84.1(2.31)(c) - Subparagraph 84.1(2.31)(c)(iii)
a Realtyco, whose shares qualified as QSBCS based on a related corporation’s active business, would be a “relevant group entity” on a sale of the latter’s shares
Summary Under
Tax Topics - Income Tax Act - Section 84.1 - Subsection 84.1(2.32) - Paragraph 84.1(2.32)(c) - Subparagraph 84.1(2.32)(c)(iii)
continued control of the related lessor to an Opco would violate the s. 84.1(2.32)(c)(iii) condition on a sale of Opco to a child’s purchaser corporation

Principal Issues: Whether an operating corporation and a sister corporation that owns a building that is leased to the operating corporation are "relevant group entities" towards each other.

Position: The operating corporation would be a relevant group entity with respect to the disposition of shares of the sister corporation owning the building, but not the other way around.

Reasons: The law and previous positions.

15 April 2025 External T.I. 2024-1021011E5 - 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 will be a principal mineral extracted from a non-bedded deposit.

Position: Yes.

Reasons: Positive Opinion provided by NRCan.