Income Tax Severed Letters - 2026-09-23

Ruling

2024 Ruling 2023-0978761R3 - Multi-wing split-up butterfly

Unedited CRA Tags
55(2), 55(3)(b), 55(3.1), 87, 12(12)

Principal Issues: Whether the butterfly dividend is exempt from 55(2) as a result of qualifying under 55(3)(b)?

Position: Yes.

Reasons: Proposed transactions meet the requirements of paragraph 55(3)(b).

2024 Ruling 2024-1030111R3 - Ruling - XXXXXXXXXX Tax Treatment of Payments on Notes

Unedited CRA Tags
20(1)(c), 212(1)(b), 56(2), 105(1), 246(1)

Principal Issues: 1. Whether the payments on the Notes are interest that is deductible under paragraph 20(1)(c). 2. Whether the payments on the Notes are subject to Part XIII under paragraph 212(1)(b). 3. Whether subsections 56(2), 105(1) and 246(1) will apply to the waiver of payments on the Perpetual Preferred Shares held by the Trust.

Position: 1. Yes. 2. No. 3. No.

Reasons: 1. There is a legal obligation to pay interest on borrowed money pursuant to subparagraph 20(1)(c)(i). 2. The payments on the Notes will be interest payments to arm’s-length persons and do not constitute participating debt interest. 3. Does not meet legal and administrative requirements in the Taxpayers’ particular factual circumstances.

Technical Interpretation - External

13 July 2026 External T.I. 2023-0960801E5 - PUC offset rules and the definition of “cross-border class”

Unedited CRA Tags
212.3(2); 212.3(4);212.3(7); 212.3(25)
Summary Under
Tax Topics - Income Tax Act - Section 212.3 - Subsection 212.3(4) - Cross-Border Class
the requirement that the non-resident parent own at least one share of the CRIC can be satisfied by ownership of a fraction of a share
Summary Under
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Share
fractional share treated as a share for s. 212.3(4) purposes

Principal Issues: Whether the holder of a fractional share would be considered to hold at least one share of a class of shares of the capital stock of a corporation resident in Canada under the definition of “cross-border class” set out in subsection 212.3(4)?

Position: Yes.

Reasons: The definition of “share” at subsection 248(1) of the Act is expanded to include any fraction of a share.

26 June 2026 External T.I. 2025-1056521E5 - Election to File a 70(2) Rights and Things Return Deadline

Unedited CRA Tags
70(2)
Summary Under
Tax Topics - Income Tax Act - Section 70 - Subsection 70(2)
an otherwise late s. 70(2) election can be made by filing an amended terminal return so as to trigger a reassessment

Principal Issues: Does the election provided for in subsection 70(2) have to be filed not later than the day that is one year after the death of the deceased and the day that is 90 days after the sending of the original notice of assessment in respect of the tax of the deceased for the year of death?

Position: It depends on the circumstances.

Reasons: The subsection 70(2) election deadline considers "any notice of assessment" in respect of the tax of the taxpayer for the year of death, including a notice of reassessment.