2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 5, 2017-0707801C6 F - RRIF transfers – partition of family patrimony |
Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit |
payment from a deceased’s RRIF to the RRIF of the surviving spouse who was excluded under the will qualified as designated benefit |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 5, 2017-0707801C6 F - RRIF transfers – partition of family patrimony |
Income Tax Act - Section 60 - Paragraph 60(l) |
transfer from deceased's RRIF to RRIF of surviving spouse in settlement of claim |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 6, 2017-0707791C6 F - RRIF - Successive Deaths |
Income Tax Act - Section 146.3 - Subsection 146.3(1) - Designated Benefit |
death of the surviving spouse before she received payment of the testator’s legacy of his RRIF precluded access to the designated benefit rules |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 6, 2017-0707791C6 F - RRIF - Successive Deaths |
Income Tax Act - Section 146.3 - Subsection 146.3(6.1) |
s. 146.3(6.1) did not apply as the executor did not receive the RRIF legacy |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 8, 2017-0712621C6 F - Dépôt en monnaie étrangère-Immobilisation |
Income Tax Act - Section 39 - Subsection 39(1.1) |
non-application to FX deposits |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 8, 2017-0712621C6 F - Dépôt en monnaie étrangère-Immobilisation |
Income Tax Act - Section 70 - Subsection 70(5) |
FX deposit treated as debt rather than s. 39(1.1) currency |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 9, 2017-0705231C6 F - Gift of a Life Insurance Policy and Subrogated Own |
Income Tax Act - Section 148 - Subsection 148(7) - Paragraph 148(7)(a) |
gain by estate on gift of policy based on cash surrender value |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 9, 2017-0705231C6 F - Gift of a Life Insurance Policy and Subrogated Own |
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(i) - Clause (c)(i)(C) |
claim in terminal return for charitable gift made by estate under individual’s will |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 9, 2017-0705231C6 F - Gift of a Life Insurance Policy and Subrogated Own |
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(i) - Clause (c)(i)(A) |
no guidance on whether designating a charity as a contingent policyholder generates a charitable credit |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 10, 2017-0705201C6 F - Capital loss - repayment of loan |
Income Tax Act - Section 40 - Subsection 40(3.3) |
the foreign currency deemed to be disposed of under s. 39(2) by an FX borrower on repaying a USD loan is not identical property to the USDs received by it under a replacement loan |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 10, 2017-0705201C6 F - Capital loss - repayment of loan |
Income Tax Act - Section 248 - Subsection 248(1) - Property |
foreign currency is not property for purposes of the suspended-loss rules |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 14, 2017-0708511C6 F - T1135 and 162(7) penalty |
Income Tax Act - Section 162 - Subsection 162(7) |
penalty for late-filing of a T1135 will be imposed automatically |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 14, 2017-0708511C6 F - T1135 and 162(7) penalty |
Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) |
failure to file a T1135 treated as a misrepresentation – but neglect etc. ground to be determined |
2018-04-11 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 16, 2017-0705181C6 F - Hedging & George Weston Limited |
Income Tax Act - Section 9 - Capital Gain vs. Profit - Futures/Forwards/Hedges |
CRA is considering changing its policy re what is capital hedge |
2018-04-04 |
20 February 2018 External T.I. 2017-0727811E5 F - Synthetic disposition |
Income Tax Act - Section 248 - Subsection 248(1) - Synthetic disposition arrangement |
an arrangement which eliminates all risk of loss nonetheless “appears” not to be a synthetic disposition arrangement if there is 20% profits participation |
2018-04-04 |
20 February 2018 External T.I. 2017-0727811E5 F - Synthetic disposition |
Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1) - Qualified Small Business Corporation Share |
disposition could be deferred to end of 24 month period if deferred-closing agreement was not a synthetic disposition agreement |
2018-03-14 |
18 December 2017 External T.I. 2017-0714971E5 F - Application of subsection 55(2) |
Income Tax Act - Section 55 - Subsection 55(2) |
relationship between Part IV tax and s. 55(2) and related amended return filings |
2018-03-14 |
18 December 2017 External T.I. 2017-0714971E5 F - Application of subsection 55(2) |
Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) |
s. 55(2) application does not reduce s. 186(1)(b) initially reported Pt IV tax |
2018-02-07 |
12 July 2017 Ministerial Correspondence 2017-0695331M4 F - Publicité sur des plateformes Web étrangères |
Income Tax Act - Section 19.01 - Subsection 19.01(2) |
ss. 19, 19.01 and 19.1 do not limit deductibility of ads on foreign websites |
2018-02-07 |
13 July 2017 Ministerial Correspondence 2017-0697311M4 F - Publicité sur des plateformes Web étrangères |
Income Tax Act - Section 19 - Subsection 19(1) |
ss. 19, 19.01 and 19.1 do not apply to advertising on foreign websites |
2018-01-17 |
18 December 2017 External T.I. 2017-0720731E5 F - Eligible dividend designation |
Income Tax Act - Section 89 - Subsection 89(14) |
designations can be made before the dividend payment time and by email |
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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