2018-01-10 |
6 December 2017 External T.I. 2016-0667361E5 F - Taxable Capital Gains Designation |
Income Tax Act - 101-110 - Section 104 - Subsection 104(21.2) |
eligibility of a gain for the capital gains deduction is lost when it is distributed by a lower-tier to upper-tier trust |
2018-01-10 |
6 December 2017 External T.I. 2016-0667361E5 F - Taxable Capital Gains Designation |
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Annual Gains Limit |
annual gains limit of upper-tier trust does not include QSBC gains distributed and designated by lower-tier trust |
2018-01-03 |
30 August 2017 External T.I. 2017-0718311E5 F - Capital dividend account |
Income Tax Act - Section 83 - Subsection 83(3) |
a late s. 83(3) election causes a retroactive increase to the CDA of the corporate recipient of the dividend |
2018-01-03 |
30 August 2017 External T.I. 2017-0718311E5 F - Capital dividend account |
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (b) |
late capital dividend election retroactively affects CDA of dividend recipient |
2017-12-27 |
27 October 2017 External T.I. 2017-0688971E5 F - New Class 14.1 |
Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(c) |
a s. 85 roll of purchased goodwill at an agreed amount of unamortized cost can trigger recapture |
2017-12-27 |
27 October 2017 External T.I. 2017-0688971E5 F - New Class 14.1 |
Income Tax Act - Section 13 - Subsection 13(39) |
non-application on s. 85 roll can result in recapture -but disposition bump available to NAL transferee |
2017-12-27 |
27 October 2017 External T.I. 2017-0688971E5 F - New Class 14.1 |
Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e) |
permitted agreed amount for Class 14.1 property rollover must be UCC even where amortized cost (equalling boot) is higher |
2017-12-27 |
31 October 2017 External T.I. 2017-0690691E5 F - New section 15 back to back loan rules |
Income Tax Act - Section 15 - Subsection 15(2.16) - Paragraph 15(2.16)(c) - Subparagraph 15(2.16)(c)(i) - Clause 15(2.16)(c)(i)(B) |
application to a term deposit pledged by a family corporation to secure a business loan taken out by a shareholder |
2017-12-27 |
31 October 2017 External T.I. 2017-0690691E5 F - New section 15 back to back loan rules |
Income Tax Act - Section 15 - Subsection 15(2.16) - Paragraph 15(2.16)(c) - Subparagraph 15(2.16)(c)(ii) |
term deposit to secure shareholder loan potentially a specifed right |
2017-12-27 |
31 October 2017 External T.I. 2017-0690691E5 F - New section 15 back to back loan rules |
Income Tax Act - Section 18 - Subsection 18(5) - Specified Right |
pledged term deposit could be specified right |
2017-12-06 |
23 October 2017 External T.I. 2017-0685001E5 F - Withdrawal of RRSP over-contributions after death |
Income Tax Act - Section 146 - Subsection 146(8.2) |
the deemed s. 146(8.8) RRSP benefit on death can be treated as a withdrawal of an excess RRSP contribution |
2017-12-06 |
3 November 2017 External T.I. 2017-0712141E5 F - Borrowing to make interest-free loans |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) |
interest on shareholders’ borrowings to fund an interest-free corporate loan may be deductible even if the proportionate-to-shares test is not met |
2017-11-29 |
11 October 2017 Internal T.I. 2017-0719181I7 F - Agreement in writing |
Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (g.4) |
pre-production mine development expenses that qualify under CEE – (g.4) need not qualify under (g.3) |
2017-11-29 |
11 October 2017 Internal T.I. 2017-0719181I7 F - Agreement in writing |
Income Tax Act - Section 66.1 - Subsection 66.1(6) - Canadian exploration expense - Paragraph (g.3) |
unresolved ambiguity re whether agreement can refer to a subcontracting agreement |
2017-11-01 |
21 April 2016 External T.I. 2015-0607451E5 F - Use of capital of a trust by a spouse |
Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) |
occupation of trust property (a residence) by individual’s spouse does not breach the capital-use requirement "under" the trust |
2017-11-01 |
14 September 2017 External T.I. 2017-0685121E5 F - Associated corporations |
Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(f) - Subparagraph 256(1.2)(f)(ii) |
Childco associated with Parent-controlled corp whose non-voting equity is held by family trust |
2017-11-01 |
14 September 2017 External T.I. 2017-0685121E5 F - Associated corporations |
Income Tax Act - Section 256 - Subsection 256(2) - Paragraph 256(2)(b) - Subparagraph 256(2)(b)(ii) |
election under s. 256(2)(b)(ii) busts s. 256(2)(a) transitivity but not association with 3rd corporation |
2017-11-01 |
14 September 2017 External T.I. 2017-0685121E5 F - Associated corporations |
Income Tax Act - Section 125 - Subsection 125(5.1) |
making s. 256(2)(b)(ii) election, by eliminating s. 256(2)(a) transitivity, reduces the reduction for taxable capital employed in Canada |
2017-10-18 |
5 June 2017 Internal T.I. 2014-0561391I7 F - Deemed security pursuant to 220(4.51) |
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2017-10-18 |
5 June 2017 Internal T.I. 2014-0561391I7 F - Deemed security pursuant to 220(4.51) |
Income Tax Act - Section 220 - Subsection 220(4.51) |
s. 220(4.51) exemption from providing security for deferred emigration tax on up to $100,000 of capital gains is available for larger gains |
2017-10-04 |
27 June 2017 External T.I. 2017-0708951E5 F - TSFA - Conditions |
Income Tax Act - Section 146.2 - Subsection 146.2(4) |
(apparently permitted) covenant in TFSA declaration requiring asset minimum to support loan to holder |
2017-10-04 |
27 June 2017 External T.I. 2017-0708951E5 F - TSFA - Conditions |
Income Tax Act - Section 146.2 - Subsection 146.2(2) - Paragraph 146.2(2)(a) |
negative covenant in favour of lender to TFSA holder permitted |
2017-09-13 |
21 July 2017 Internal T.I. 2017-0714931I7 F - Retiring allowance - Sick Leave |
Income Tax Act - Section 248 - Subsection 248(1) - Retiring Allowance |
payout of accumulated (non-excess) sick leave credits on termination of employment was a retiring allowance |
2017-09-13 |
21 July 2017 Internal T.I. 2017-0714931I7 F - Retiring allowance - Sick Leave |
Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit |
includes payout on death of accumulated (non-excess) sick leave credits |
2017-09-13 |
21 July 2017 Internal T.I. 2017-0714931I7 F - Retiring allowance - Sick Leave |
Income Tax Act - Section 5 - Subsection 5(1) |
payout on termination of accumulated sick leave credit is employment income to extent otherwise would have been paid at year end |
2017-09-06 |
28 October 2016 External T.I. 2016-0654331E5 F - Transfer of rights to income |
Income Tax Act - Section 9 - Nature of Income |
where rental lands purchased subject to obligation to pay the rents to vendor, rents did not have quality of income to purchaser under s. 9 |
2017-09-06 |
28 October 2016 External T.I. 2016-0654331E5 F - Transfer of rights to income |
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense |
where rental lands purchased subject to obligation to pay the rents to vendor, no income inclusion and deduction of the rents by the purchaser under ss. 9 and 18(1)(a) |
2017-09-06 |
28 October 2016 External T.I. 2016-0654331E5 F - Transfer of rights to income |
Income Tax Act - Section 56 - Subsection 56(4) |
where rental lands purchased subject to obligation to pay the rents to NAL vendor, s. 56(4) trumps s. 9 to include rents in purchaser’s income |
2017-09-06 |
28 October 2016 External T.I. 2016-0654331E5 F - Transfer of rights to income |
Income Tax Act - Section 56 - Subsection 56(2) |
s. 56(2) could apply to shareholder of purchaser of lands if vendor did not pay FMV consideration for retaining rights to rents |
2017-08-23 |
21 June 2017 External T.I. 2016-0678361E5 F - Capital Dividend Account |
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account - Paragraph (a) - Subparagraph (a)(i) - Clause (a)(i)A) |
negative ACB gain realized by a partnership is subject to the exclusion for s. 40(3.1) gains when allocated to a partner |
2017-08-23 |
21 June 2017 External T.I. 2016-0678361E5 F - Capital Dividend Account |
Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) |
a negative ACB gain retains its character when allocated |
2017-08-09 |
12 May 2017 External T.I. 2017-0683511E5 F - Purpose tests of a dividend or repurchase of share |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) - Subparagraph 55(2.1)(b)(ii) |
redeeming common shares otherwise than out of safe income may be GAARable |
2017-08-09 |
12 May 2017 External T.I. 2017-0683511E5 F - Purpose tests of a dividend or repurchase of share |
Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) |
using s. 55(3)(a) to distribute cash otherwise than from safe income likely abusive |
2017-08-09 |
12 May 2017 External T.I. 2017-0683511E5 F - Purpose tests of a dividend or repurchase of share |
Income Tax Act - Section 245 - Subsection 245(4) |
use of s. 55(3)(a) redemption exception to circumvent safe income limitation could be offensive |
2017-08-02 |
12 July 2017 Ministerial Correspondence 2017-0697761M4 F - Publicité des plateformes Web étrangères |
Income Tax Act - Section 19.1 - Subsection 19.1(1) |
ads by Canadian advertisers on foreign websites generally are deductible |
2017-07-26 |
28 June 2017 External T.I. 2016-0653921E5 F - Beneficiary/person beneficially interested |
Income Tax Act - Section 70 - Subsection 70(3) |
a testamentary trust could be a beneficiary or beneficially interested in an estate |
2017-07-26 |
28 June 2017 External T.I. 2016-0653921E5 F - Beneficiary/person beneficially interested |
Income Tax Act - Section 248 - Subsection 248(25) |
testamentary trust could be considered to have a right as beneficiary in estate |
2017-07-12 |
21 November 2016 Internal T.I. 2016-0675761I7 F - Obligation de produire un T4A |
Income Tax Regulations - Regulation 200 - Subsection 200(1) |
artists’ union must issue T4A slips to incorporated artists respecting benefits received from the union |
2017-07-12 |
6 June 2017 External T.I. 2015-0617331E5 F - TFSA - Exempt Contribution |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) |
payment of family-law debt out of TFSA to surviving spouse would occur as a consequence of the deceased’s death |
2017-07-12 |
6 June 2017 External T.I. 2015-0617331E5 F - TFSA - Exempt Contribution |
Income Tax Act - Section 248 - Subsection 248(23.1) - Paragraph 248(23.1)(a) |
payment of family-law obligation of deceased to surviving spouse out of deceased's TFSA could qualify |