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 |
2017-03-29 |
20 February 2017 External T.I. 2014-0534341E5 F - Partnership change of fiscal period |
Income Tax Act - Section 249.1 - Subsection 249.1(4) |
a partnership of individuals can change with CRA’s permission to a different non-calendar year end |
2017-03-29 |
20 February 2017 External T.I. 2014-0534341E5 F - Partnership change of fiscal period |
Income Tax Act - Section 249.1 - Subsection 249.1(7) |
requirement for serious commercial reason for change in non-calendar year end |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.1, 2016-0674221C6 F - General deduction from tax - 123.4 |
Income Tax Act - Section 123.4 - Subsection 123.4(1) - Full Rate Taxable Income |
income on which the SBD was not claimed nonetheless is not eligible for the general rate deduction |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.2, 2017-0682711C6 F - Dedicated Telephone Service for Income Tax Service |
Income Tax Act - Section 152 - Subsection 152(1) |
telephone service for those with complex technical tax issues will initially be limited to Ontario and Quebec CPAs |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.3, 2016-0674821C6 F - Individuals separated living under the same roof |
Income Tax Act - Section 122.6 - Cohabiting Spouse or Common-Law Partner |
couple under the same roof can be living separate and apart |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.3, 2016-0674821C6 F - Individuals separated living under the same roof |
Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner |
meaning of living "separate and apart" |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.4, 2016-0674831C6 F - Changement d'usage - 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 |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.4, 2016-0674831C6 F - Changement d'usage - duplex |
Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(a) |
apportionment of operating expenses of duplex used both personally and for rental income |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.4, 2016-0674831C6 F - Changement d'usage - duplex |
Income Tax Act - Section 248 - Subsection 248(1) - Property |
duplex is single property |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.5, 2016-0674801C6 F - Allocation et frais d'une automobile |
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(b) - Subparagraph 6(1)(b)(vii.1) |
general reasonability of a car allowance rate of $0.54/$0.48 per kilometre including for electric vehicles |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.5, 2016-0674801C6 F - Allocation et frais d'une automobile |
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(k) - A - Subparagraph A(v) |
electric vehicles treated the same |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.6, 2016-0674861C6 F - Wholly dependent person tax credit |
Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(b) - Subparagraph 118(1)(b)(ii) |
meaning of support/legal custody not required/ITA is silent on number of days child must spend with parent |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.7, 2016-0674811C6 F - Allocations automobiles & dépenses afférentes |
Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) |
if vehicle allowance is too low, employee can include the allowance and deduct the vehicle expenses/T2200 production expected |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.7, 2016-0674811C6 F - Allocations automobiles & dépenses afférentes |
Income Tax Regulations - Regulation 200 - Subsection 200(3) |
correction of T4s |
2017-03-15 |
2 February 2017 Quebec CPA Individual Taxation Roundtable Q. 1.8, 2016-0674851C6 F - HBTC - Acquisition by way of gift |
Income Tax Act - Section 118.05 - Subsection 118.05(1) - Qualifying Home |
gifted home can qualify for the HBTC |
2017-02-08 |
19 January 2017 External T.I. 2015-0576751E5 F - Trust, Disposition of depreciable property, Assumption |
Income Tax Act - Section 13 - Subsection 13(7) - Paragraph 13(7)(e) |
s. 13(7)(e) applicable to s. 107(2.1) distribution but not s. 104(5) deemed disposition |
2017-02-08 |
19 January 2017 External T.I. 2015-0576751E5 F - Trust, Disposition of depreciable property, Assumption |
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) |
s. 107(2) generally available where beneficiary assumes trust debt |
2017-02-08 |
19 January 2017 External T.I. 2015-0576751E5 F - Trust, Disposition of depreciable property, Assumption |
Income Tax Act - Section 248 - Subsection 248(1) - Personal Trust |
non-commital as to whether assumption of debt could constitute tainting consideration |
2017-02-08 |
19 January 2017 External T.I. 2015-0576751E5 F - Trust, Disposition of depreciable property, Assumption |
Income Tax Act - 101-110 - Section 107 - Subsection 107(2.1) |
s. 13(7)(e) applicable to depreciable property distribution |