|
2020-06-17 |
2 June 2020 External T.I. 2020-0847081E5 F - Compte de frais médicaux – période de report |
Income Tax Act - Section 248 - Subsection 248(1) - Private Health Services Plan |
during COVID-19, unused HCSA credits can be carried forward for up to an additional 6 months |
|
2020-06-03 |
29 May 2020 External T.I. 2020-0849841E5 F - Deferred salary leave plans (DSLP) |
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) |
CRA will not require a DSLP to be terminated where the leave period has been terminated for COVID reasons |
|
2020-05-27 |
9 April 2020 External T.I. 2014-0527261E5 F - Beneficial ownership discretionary power of trustees |
Income Tax Act - 101-110 - Section 107.4 - Subsection 107.4(1) - Paragraph 107.4(1)(a) |
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary does not preclude the latter being the beneficial owner |
|
2020-05-27 |
9 April 2020 External T.I. 2014-0527261E5 F - Beneficial ownership discretionary power of trustees |
Income Tax Act - 101-110 - Section 107.4 - Subsection 107.4(1) - Paragraph 107.4(1)(i) |
discretion of trustees to retain capital or income rather than distribute to the sole current beneficiary precluded s. 73(1.01)(c)(ii) application and satisfied s. 107/4(1)(i) |
|
2020-05-27 |
9 April 2020 External T.I. 2014-0527261E5 F - Beneficial ownership discretionary power of trustees |
General Concepts - Ownership |
discretion of trustee to accumulate rather than distribute income to sole beneficiary did not detract from beneficial ownership |
|
2020-05-27 |
9 April 2020 External T.I. 2014-0527261E5 F - Beneficial ownership discretionary power of trustees |
Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) |
"right to receive" all the income not satisfied where trustees' discretion to accumulate income |
|
2020-05-20 |
8 April 2020 External T.I. 2016-0668991E5 F - Death of RRSP or RRIF annuitant |
Income Tax Act - Section 146 - Subsection 146(8.9) |
discretionary s. 146(8.9) deduction is available even where no timely issuance of T4RSP, but no deduction where annuitant with surviving spouse dies after the maturity of the RRSP |
|
2020-05-20 |
8 April 2020 External T.I. 2016-0668991E5 F - Death of RRSP or RRIF annuitant |
Income Tax Act - Section 146.3 - Subsection 146.3(6.2) |
s. 146.3(6.2) deduction can be less than the formula amount and does not depend on timely receipt of T4RIF – but applies only when the last annuitant of a RRIF dies |
|
2020-05-20 |
8 April 2020 External T.I. 2016-0668991E5 F - Death of RRSP or RRIF annuitant |
Income Tax Regulations - Regulation 214 - Subsection 214(4) |
T4RSP issued to surviving spouse rather than to deceased where transfer of entire refund of premiums to surviving spouse’s RRSP and RRSP is fully distributed |
|
2020-05-20 |
8 April 2020 External T.I. 2016-0668991E5 F - Death of RRSP or RRIF annuitant |
Income Tax Regulations - Regulation 215 - Subsection 215(4) |
T4RIF issued to surviving spouse rather than to deceased where transfer of entire eligible amount to surviving spouse’s RRSP or RRIF, and RRIF is fully distributed |
|
2020-05-20 |
8 April 2020 External T.I. 2016-0668991E5 F - Death of RRSP or RRIF annuitant |
Income Tax Regulations - Regulation 205 - Subsection 205(1) |
issuer required to issue T4RSP or T4RIF within a reasonable time after notification of death received after February filing date |
|
2020-05-20 |
15 May 2020 External T.I. 2020-0848511E5 F - Deferred salary leave plans (DSLPs) |
Income Tax Regulations - Regulation 6801 - Paragraph 6801(a) - Subparagraph 6801(a)(i) |
employer can defer the 6-year deferral period, e.g., for those with COVID-disrupted travel, pending Finance review |
|
2020-04-29 |
9 March 2020 External T.I. 2013-0490301E5 F - Société exploitant une EPSP |
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(p) - Subparagraph 18(1)(p)(ii) |
PSB can deduct for auto leasing costs or loan interest expense to extent of benefit conferred on the individual qua employee rather than shareholder – but no CCA deduction (other than under s. 18(1)(p)(iii)) |
|
2020-04-22 |
14 April 2020 APFF Roundtable Q. 5, 2020-0845431C6 F - Avantage imposable - télétravail / Taxable benefit |
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) |
employer reimbursement of up to $500 for the cost of a telework computer is non-taxable during COVID-19 |
|
2020-04-08 |
22 January 2020 External T.I. 2014-0559281E5 F - T5008 |
Income Tax Act - Section 49 - Subsection 49(1) |
writing of call option (with deemed nil ACB) is reported as having nil “cost” on T5008 |
|
2020-04-08 |
22 January 2020 External T.I. 2014-0559281E5 F - T5008 |
Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(i) |
option writer can deduct its expenses from deemed s. 49(1) proceeds |
|
2020-04-08 |
22 January 2020 External T.I. 2014-0559281E5 F - T5008 |
Income Tax Regulations - Regulation 230 - Subsection 230(2) |
“cost” of call options closed out by writer is nil, not the cost of offsetting call option purchase/cost re short sale is the FMV of the borrowed shares |
|
2020-04-08 |
22 January 2020 External T.I. 2014-0559281E5 F - T5008 |
Income Tax Act - Section 9 - Computation of Profit |
cost of short sale is FMV of borrowed shares |
|
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 129 - Subsection 129(1) |
reversal of position that s. 84.1(1)(b) dividends do not generate dividend refunds |
|
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 |
