2020-03-04 |
11 October 2019 APFF Roundtable Q. 1, 2019-0819401C6 F - Interaction between par. 84.1(1)(b) and 129(1(a) |
Income Tax Act - Section 84.1 - Subsection 84.1(1) - Paragraph 84.1(1)(b) |
s. 84.1 dividend can generate dividend refund |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(z) |
s. 20(1)(z) applies notwithstanding s. 18(1)(a) but is subject to source rule in s. 20(1) preamble |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation |
Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(b) |
lease termination payment received by tenant was referable to complete period of holding of (annually renewed) leasehold interest |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation |
Income Tax Act - Section 54 - Principal Residence |
lease termination payment received by tenant was eligible for principal residence exemption |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 2, 2019-0812611C6 F - Résiliation d'un bail - Lease cancellation |
Income Tax Act - Section 20 - Subsection 20(1) |
s. 20(1)-preamble source rule applied |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 3, 2019-0812621C6 F - Changement d’usage-impact sur l’exemption pour résidence principale |
Income Tax Act - Section 54 - Principal Residence - Paragraph (c) |
reporting of principal residence exemption when the residence had been expanded from 1 to 2 duplex units |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 3, 2019-0812621C6 F - Changement d’usage-impact sur l’exemption pour résidence principale |
Income Tax Act - Section 45 - Subsection 45(3) |
method for making s. 45(3) election where conersion of duplex |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 3, 2019-0812621C6 F - Changement d’usage-impact sur l’exemption pour résidence principale |
Income Tax Act - Section 43 - Subsection 43(1) |
allocation of ACB between units in a duplex |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 5, 2019-0812641C6 F - Professional fees incurred in the context of a litigation with CRA |
Income Tax Act - Section 60 - Paragraph 60(o) - Subparagraph 60(o)(i) |
s. 60(o)(i) generates professional fee deductibility from the moment that CRA informs that there is an audit |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 6, 2019-0812651C6 F - CDA and wind-up of a subsidiary |
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) |
IT-126R2 applicable in determining when CDA of sub is added to parent’s CDA |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 6, 2019-0812651C6 F - CDA and wind-up of a subsidiary |
Income Tax Act - Section 88 - Subsection 88(1) |
IT-126R2 applied re tiiming of addition of the wound-up subsidiary’s CDA |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 8, 2019-0821311C6 F - APFF 2019 Q.8: Surplus Documentation |
Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b) |
failure to prepare surplus accounts will preclude a late-filed Reg. 5901(2)(b) election |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 8, 2019-0821311C6 F - APFF 2019 Q.8: Surplus Documentation |
Income Tax Act - Section 230 - Subsection 230(1) |
taxpayer must prepare adequate records to support surplus computations |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 9, 2019-0812781C6 F - Acquisition of control and trusts |
Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(i) - Subparagraph 256(7)(i)(ii) |
discretion of a spousal trust’s trustees to encroach on capital in favour of the spouse likely offends s. 256(7)(i)(ii) |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 10, 2019-0812691C6 - Consolidated safe income |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
negative safe income of a subsidiary need not reduce the SIOH of the parents’ shares |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 11, 2019-0812701C6 F - Paragraph 251(5)(b) and convertible debenture |
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) |
debenture with a contingent conversion right and non-participating conversion ratio entailed loss of CCPC status |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 12, 2019-0812711C6 - Part IV |
Income Tax Act - Section 186 - Subsection 186(2) |
two 50% shareholders of two corporations likely acting in concert to produce connectedness |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 12, 2019-0812711C6 - Part IV |
Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) |
two 50% shareholders of two corporations likely acting in concert to produce connectedness |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 13, 2019-0812721C6 F - Late-Filed CDA Election |
Income Tax Act - Section 83 - Subsection 83(3) |
directors can authorize a late capital dividend election after the dividend declaration |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 15, 2019-0812741C6 F - TOSI and interest income earned by a trust |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Split Income - Paragraph (d) - Subparagraph (d)(i) |
beneficiaries of a family trust can benefit from the excluded debt exception from the TOSI rules |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 15, 2019-0812741C6 F - TOSI and interest income earned by a trust |
Income Tax Act - 101-110 - Section 108 - Subsection 108(5) - Paragraph 108(5)(a) |
source character of trust income maintained in the absence of s. 108(5)(a) appplication |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 16, 2019-0812751C6 F - 74.4(2) and 120.4 interaction |
Income Tax Act - Section 74.4 - Subsection 74.4(2) |
main purpose test can still apply even where designated persons are subject to TOSI |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 16, 2019-0812751C6 F - 74.4(2) and 120.4 interaction |
Income Tax Act - Section 74.4 - Subsection 74.4(2) - Paragraph 74.4(2)(g) |
only s. 74.4(2)(g) provides relief from the joint application of the TOSI and s. 74.4(2) rules |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 17, 2019-0812761C6 F - Entreprise - Business |
Income Tax Act - Section 248 - Subsection 248(1) - Business |
Stewart as the leading case on “business” |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 18, 2019-0812771C6 F - TOSI Actively Engaged |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Business - Paragraph (a) |
loss of excluded business exception when specified individual went on extended mat leave or disability |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 18, 2019-0812771C6 F - TOSI Actively Engaged |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Reasonable Return |
potential application of reasonable return exception where on mat leave or disability |
2020-03-04 |
11 October 2019 APFF Roundtable Q. 19, 2019-0825031C6 F - Service téléphonique réservé |
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2020-02-26 |
23 January 2020 External T.I. 2019-0796121E5 F - Déduction pour résidence des membres du clergé |
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(c) |
s. 8(1)(c) does not entail any home office requirement |
2020-02-05 |
14 January 2020 Internal T.I. 2018-0785991I7 F - Subsection 86.1(2) |
Income Tax Act - Section 86.1 - Subsection 86.1(2) |
s. 86.1(2)(c)(i) references central management and control test/tracking shares satisfied s. 86.1(2)(a) |
2020-02-05 |
14 January 2020 Internal T.I. 2018-0785991I7 F - Subsection 86.1(2) |
Income Tax Act - Section 248 - Subsection 248(1) - Common Share |
tracking shares were common shares |
2020-01-08 |
12 November 2019 External T.I. 2019-0822161E5 F - T5008 Statement of Securities Transactions |
Income Tax Regulations - Regulation 230 - Subsection 230(1) - Sale |
a contribution of shares to a TFSA is not a “sale” for Reg. 230 purposes |
2020-01-08 |
12 November 2019 External T.I. 2019-0822161E5 F - T5008 Statement of Securities Transactions |
Income Tax Regulations - Regulation 230 - Subsection 230(2) |
transfer of listed shares from taxable brokerage account to individual’s TFSA did not generate T5008 reporting requirement |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 2, 2019-0811881C6 F - HBP/HBTC - Death of a spouse |
Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) |
widow who had resided in the home of her deceased husband could access the HBP program to purchase a condo or acquire his home from estate |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 2, 2019-0811881C6 F - HBP/HBTC - Death of a spouse |
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home - Paragraph (a) |
widow who had resided in the home of her deceased husband could access the first-time home buyer’s credit |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 4, 2019-0813421C6 F - TFSA - Survivor Payment - Decrease in FMV |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) |
survivor payment equals amounts paid under the TFSA to the estate provided the survivor receives at least that amount as TFSA beneficiary |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 4, 2019-0813421C6 F - TFSA - Survivor Payment - Decrease in FMV |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Unused TFSA Contribution Room - Paragraph (b) - Element D |
diminution in TFSA property in executors' hands reduces exempt contribution |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 5, 2019-0820901C6 F - TFSA Exempt Contribution - Timing of contribution |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (c) |
an exempt contribution to a TFSA can only be made as of right no more than 30 days before the survivor payment was received from an estate |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 6, 2019-0813451C6 F - TFSA - Bequest and disclaimer |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) |
transfer of TFSA to surviving spouse because of daughter’s renunciation occurred as a consequence of the deceased’s death |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 6, 2019-0813451C6 F - TFSA - Bequest and disclaimer |
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(b) |
transfer of TFSA to survivor on renunciation of bequest thereof occurred as a consequence of death |
2019-12-18 |
11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 7, 2019-0821701C6 F - TFSA Exempt Contribution - Survivor payment |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) |
extension of rollover deadline through Ministerial discretion |