2017-07-12 |
6 June 2017 External T.I. 2015-0617331E5 F - TFSA - Exempt Contribution |
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) |
legacy of residue (which included the residence) could be satisfied with TFSA of deceased |
2017-07-12 |
6 April 2017 External T.I. 2016-0658841E5 F - Purpose tests and Allocation of safe income |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
s. 55(2) did not apply to dividends paid only for asset protection and QSBC-status purposes |
2017-07-12 |
6 April 2017 External T.I. 2016-0658841E5 F - Purpose tests and Allocation of safe income |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
safe income was allocated between 2 classes of participating shares pro rata to their dividend entitlements |
2017-07-05 |
7 June 2017 External T.I. 2016-0671731E5 F - Transfer of life insurance policy by dividend in kind |
Income Tax Act - Section 148 - Subsection 148(7) - Paragraph 148(7)(a) |
dividend-in-kind of a life insurance policy avoids the policy’s disposition at FMV |
2017-07-05 |
7 June 2017 External T.I. 2016-0671731E5 F - Transfer of life insurance policy by dividend in kind |
Income Tax Act - Section 52 - Subsection 52(2) |
proceeds and cost of distributed life insurance policy determined under s. 148(7) rather than s. 52(2) |
2017-06-28 |
30 March 2016 Internal T.I. 2014-0547931I7 F - Voyages offerts par une compagnie |
Income Tax Act - Section 9 - Nature of Income |
full value of incentive trips, including business portion, included in income of recipient personal corporations |
2017-06-28 |
30 March 2016 Internal T.I. 2014-0547931I7 F - Voyages offerts par une compagnie |
Income Tax Regulations - Regulation 200 - Subsection 200(1) |
company providing free trips to incorporated sales reps is required to T4A the individuals if they received the trip qua employee (but not shareholder) of their corporation |
2017-06-28 |
9 March 2017 External T.I. 2017-0689241E5 F - Avantages imposables relatifs aux automobiles ou autres véhicules |
Income Tax Act - Section 248 - Subsection 248(1) - Automobile |
emergency vehicle's markings must clearly mark it as police or fire vehicle |
2017-06-28 |
9 March 2017 External T.I. 2017-0689241E5 F - Avantages imposables relatifs aux automobiles ou autres véhicules |
Income Tax Act - Section 6 - Subsection 6(2) |
even where a vehicle available 24 hours a day to a fire chief is clearly marked as a firefighter car, the employer must still estimate whether there is a personal-use benefit |
2017-06-28 |
15 May 2017 External T.I. 2016-0645891E5 F - Services rendered to a State |
Treaties - Income Tax Conventions - Article 18 |
public-sector nurse did not provide services “to Switzerland” for purposes of Art. 18(2)(a) of the Canada-Swiss Treaty |
2017-06-21 |
29 May 2017 External T.I. 2014-0537111E5 F - Consequential assessment |
Income Tax Act - Section 152 - Subsection 152(4.3) |
reassessing to increase closing inventory permits a s. 152(4.3) reassessment to change the taxes payable "balance" for the following year |
2017-06-21 |
29 May 2017 External T.I. 2014-0537111E5 F - Consequential assessment |
Income Tax Act - Section 10 - Subsection 10(2) |
reassessing to increase closing inventory permits reassessment to increase next year's COS |
2017-06-21 |
9 March 2017 External T.I. 2016-0680071E5 F - Règles transitoires - immobilisations admissibles |
Income Tax Act - Section 13 - Subsection 13(38) - Paragraph 13(38)(d) |
s. 13(38)(d)(iii) election can be available notwithstanding that only a minor pre-2017 ECE was incurred |
2017-06-21 |
10 May 2017 External T.I. 2017-0687051E5 F - Addition to ACB of a partnership interest |
Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(i) |
no s. 53(1)(e) addition for s. 34.2(2) stub period income inclusion |
2017-06-21 |
10 May 2017 External T.I. 2017-0687051E5 F - Addition to ACB of a partnership interest |
Income Tax Act - Section 34.2 - Subsection 34.2(2) |
no partnership-interest ACB addition for inclusion |
2017-06-21 |
11 May 2017 External T.I. 2016-0679751E5 F - TFSA - Exempt Contribution |
Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) |
a “survivor payment” can be made out of the deceased’s TFSA even where this occurs in the executor’s discretion |
2017-06-21 |
11 May 2017 External T.I. 2016-0679751E5 F - TFSA - Exempt Contribution |
Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) |
legacy made by executor exercising discretion conferred under will occurred because of death |
2017-06-21 |
12 May 2017 External T.I. 2016-0649841E5 F - Dividend Refund to Private Corporation |
Income Tax Act - Section 129 - Subsection 129(1) - Paragraph 129(1)(a) |
CRA automatically pays available dividend refunds even when not claimed (or wanted) |
2017-06-07 |
21 November 2016 Internal T.I. 2016-0641961I7 F - DSU Plan |
Income Tax Regulations - Regulation 6801 - Paragraph 6801(d) - Subparagraph 6801(1)(d)(i) |
potential change-of-control redemption trigger (and Code s. 409A triggers) were offside |
2017-06-07 |
21 November 2016 Internal T.I. 2016-0641961I7 F - DSU Plan |
Income Tax Act - Section 6 - Subsection 6(11) |
recognition in income of full value of deferred units issued under offside plan |
2017-06-07 |
15 May 2017 External T.I. 2015-0580461E5 F - Life insurance policy held in an RCA trust |
Income Tax Act - Section 207.5 - Subsection 207.5(3) |
s. 207.7(2) refund might be generated where an RCA trust distributes a life insurance policy to its employee beneficiary |
2017-06-07 |
15 May 2017 External T.I. 2015-0580461E5 F - Life insurance policy held in an RCA trust |
Income Tax Act - Section 207.5 - Subsection 207.5(1) - RCA Strip |
holding of life insurance policy could entail RCA strip |
2017-05-31 |
30 March 2017 External T.I. 2015-0609951E5 F - Article 18 of the Canada-Turkey Income Tax Convention |
Treaties - Income Tax Conventions - Article 18 |
capital portion of s. 56(1)(d) is not excluded as an annuity under Canada-Turkey Treaty/RRSP annuity payments are pensions |
2017-05-31 |
30 March 2017 External T.I. 2015-0609951E5 F - Article 18 of the Canada-Turkey Income Tax Convention |
Other Legislation/Constitution - Federal - Income Tax Conventions Interpretation Act - Section 5 - Pension |
RRSP annuity payments to Turkish resident were subject to Pt XIII tax as pension payments |
2017-05-31 |
30 March 2017 External T.I. 2015-0609951E5 F - Article 18 of the Canada-Turkey Income Tax Convention |
Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(d) |
capital components are not deduction of cost |
2017-05-24 |
2 May 2017 External T.I. 2016-0663781E5 F - Meaning of retained earnings/calculation of capital |
Income Tax Act - Section 181 - Subsection 181(3) - Paragraph 181(3)(b) - Subparagraph 181(3)(b)(i) |
GAAP meant ASPE if ASPE followed by the corporation |
2017-05-24 |
2 May 2017 External T.I. 2016-0663781E5 F - Meaning of retained earnings/calculation of capital |
Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(a) |
appraisal increment in acordance with ASPE increased a corporation’s retained earnings |
2017-05-24 |
20 April 2017 External T.I. 2016-0672501E5 F - Usufruct and Use of capital of a trust by a spouse |
Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) |
right of the bare owner of property, subject to a usufruct in favour of a surviving spouse, to dispose of his bare ownership does not preclude a spousal trust |
2017-05-24 |
20 April 2017 External T.I. 2016-0672501E5 F - Usufruct and Use of capital of a trust by a spouse |
Income Tax Act - Section 248 - Subsection 248(3) - Paragraph 248(3)(a) |
deemed spousal trust created through will |
2017-05-24 |
19 April 2017 External T.I. 2016-0625841E5 F - Gift of equitable interest in a trust |
Income Tax Act - Section 118.1 - Subsection 118.1(5.1) |
s. 118.1(5.1) does not apply where a GRE donates a capital interest in a charitable residual trust created by will |
2017-05-24 |
19 April 2017 External T.I. 2016-0625841E5 F - Gift of equitable interest in a trust |
Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts - Paragraph (c) - Subparagraph (c)(ii) - Clause (c)(ii)(B) |
(c)(ii)(A) rather than (c)(ii)(B) applies where a GRE charitably donates a capital interest in a charitable residual trust created by will |
2017-04-26 |
14 March 2017 External T.I. 2016-0656101E5 F - Death Benefit |
Income Tax Act - Section 248 - Subsection 248(1) - Death Benefit |
sole shareholder who did not receive salary every year could receive a death benefit/staggered payment |
2017-04-19 |
14 March 2017 External T.I. 2016-0627311E5 F - Deduction of contribution to an IPP or RCA |
Income Tax Act - Section 248 - Subsection 248(1) - Salary Deferral Arrangement |
a mooted RCA providing supplementary pension benefits must be similar to the IPP which it supplements |
2017-04-19 |
14 March 2017 External T.I. 2016-0627311E5 F - Deduction of contribution to an IPP or RCA |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(q) |
non-deductibility if supplementary benefits do not merely proportionately top-up IPP benefits |
2017-04-19 |
13 March 2017 External T.I. 2016-0626641E5 F - Election - Subsection 1101(5b.1) Reg. |
Income Tax Regulations - Regulation 1101 - Subsection 1101(5b.1) |
only one Reg. 1101(5b.1) election is required where work on an addition to a non-residential building extends over more than one year |
2017-04-19 |
13 March 2017 External T.I. 2016-0626641E5 F - Election - Subsection 1101(5b.1) Reg. |
Income Tax Regulations - Regulation 1102 - Subsection 1102(23) |
further work on an addition does not fall into a separate class |
2017-04-12 |
3 February 2017 External T.I. 2015-0589821E5 F - Change of Use of duplex |
Income Tax Act - Section 45 - Subsection 45(1) - Paragraph 45(1)(c) |
substantially renovating the personal-use portion of a rental property (without changing floor areas) generally would not engage the change-of-use rules |
2017-04-12 |
24 March 2017 External T.I. 2016-0662381E5 F - Control - unanimous shareholders agreement |
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(i) |
highly contingent secondary call right of a non-resident on shares of minority residents undercuts for CCPC purposes their USA right to appoint half the board |
2017-04-12 |
24 March 2017 External T.I. 2016-0662381E5 F - Control - unanimous shareholders agreement |
Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) - Subparagraph 251(5)(b)(ii) |
no application if non-resident under USA cannot control board decision to redeem residents’ shares – applies if automatic redemption requirement |
2017-04-12 |
24 March 2017 External T.I. 2016-0662381E5 F - Control - unanimous shareholders agreement |
Income Tax Act - Section 125 - Subsection 125(7) - Canadian-Controlled Private Corporation |
non-resident would control notwithstanding USA board appointment right of residents due to its secondary call right on their shares or right to require corp to honour automatic redemption clause |