2015-12-09 |
9 October 2015 APFF Roundtable Q. 6, 2015-0595551C6 F - Capital Dividend Account |
Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(z.1) |
amalgamation can cause a combined positive CDA balance to be zeroed |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 6, 2015-0595551C6 F - Capital Dividend Account |
Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account |
capital loss does not eliminate positive CDA contribution of capital dividend received |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 7, 2015-0595561C6 F - Computation of adjusted cost base and section 84.1 |
Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) |
terminal-return capital gains exemption claimed on bequested shares grinds their ACB for s. 84.1 purposes to the family beneficiaries |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 8, 2015-0595591C6 F - Dividend Refund and Part IV Tax Payable |
Income Tax Act - Section 129 - Subsection 129(1) |
unclaimed divided refunds do not generate s. 186(1)(b) tax to the dividend recipient |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 9, 2015-0595661C6 F - Question 9 - Table Ronde APFF 2015 |
Income Tax Act - Section 9 - Timing |
damages clause might represent a condition permitting deferral of income recognition |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 9, 2015-0595661C6 F - Question 9 - Table Ronde APFF 2015 |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(m) |
s. 20(1)(m) reserve may be claimable for an amount included under s. 9 rather than 12(1)(a) |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 10, 2015-0595671C6 F - Question 10 - Table Ronde APFF 2015 |
General Concepts - Effective Date |
price adjustment clause not required to reduce income for an excessive management fee |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 10, 2015-0595671C6 F - Question 10 - Table Ronde APFF 2015 |
Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose |
generally should be reimbursement for expenses incurred for affiliate |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 11, 2015-0595771C6 F - Deductibility of interest in a leveraged buyout |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) |
CRA non-committal on interest deductibility where only the indirect use of borrowed funds is to acquire Target’s shares |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 12, 2015-0595601C6 F - Proposed legislation - subsection 55(2) |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) |
transaction targeted at reducing FMV of Opco shares for creditor-proofing was caught |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 12, 2015-0595601C6 F - Proposed legislation - subsection 55(2) |
Income Tax Act - Section 55 - Subsection 55(2) |
no relief under new rules where Part IV tax is refunded on payment of dividend to individual shareholder |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 13, 2015-0595781C6 F - Reimbursement of attributed income |
Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) |
no secondary adjustments are required for the operation of most income attribution provisions |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 13, 2015-0595781C6 F - Reimbursement of attributed income |
Income Tax Act - Section 15 - Subsection 15(1) |
no secondary adjustments are required for the operation of most income attribution provisions |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 14, 2015-0595631C6 F - Indirect Monetization of CGD |
Income Tax Act - Section 84.1 - Subsection 84.1(2) - Paragraph 84.1(2)(a.1) |
individual cannot effectively use the ACB of shares previously stepped-up using the capital gains deduction to create a loss to offset a gain on the sale of common shares |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 14, 2015-0595631C6 F - Indirect Monetization of CGD |
Income Tax Act - Section 245 - Subsection 245(4) |
Descarries not consistent with use of ACB on a previous capital gains crystallizatin to create a capital loss for use on a sale |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 15, 2015-0595641C6 F - Surplus Stripping and GAAR |
Income Tax Act - Section 55 - Subsection 55(2) |
GAAR did not apply where a taxpayer deliberately triggered the application of s. 55(2) |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 15, 2015-0595641C6 F - Surplus Stripping and GAAR |
Income Tax Act - Section 245 - Subsection 245(4) |
GAAR did not apply where a taxpayer deliberately triggered the application of s. 55(2) |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 16, 2015-0595801C6 F - At-risk amount |
Income Tax Act - Section 96 - Subsection 96(2.2) - Paragraph 96(2.2)(a) |
a part disposition of a partnership interest results in an anomalous pro rata reduction in the partner’s at-risk amount for the year of disposition |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 16, 2015-0595801C6 F - At-risk amount |
Income Tax Act - Section 96 - Subsection 96(1.01) |
life is tough in the big city |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 17, 2015-0595811C6 F - Application of 96(1.1) |
Income Tax Act - Section 96 - Subsection 96(1.1) |
income allocated under s. 96(1.1) can have specific sourcing, e.g., as dividend income |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 18, 2015-0595821C6 F - Ss. 96(1.01) and s. 103 |
Income Tax Act - 101-110 - Section 103 - Subsection 103(1.1) |
s. 103 can be applied to reallocate income to a deemed s. 96(1.01) partner |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 19, 2015-0595621C6 F - Cash pooling and subsection 15(2) |
Income Tax Act - Section 15 - Subsection 15(2.6) |
permitted use of FIFO to determine if debt repayments satisfy s. 15(2.6) |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 20, 2015-0595681C6 F - Avantages imposables / dépenses d’entreprise |
Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) |
employer-provided parties, bike stands and internal recreation areas generally not taxable benefits |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 21, 2015-0598291C6 F - Filing deadline for various forms |
Statutory Interpretation - Interpretation Act - Section 26 |
where a return filing deadline falls on a Saturday, the deadline for related forms also is extended to the Monday |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 21, 2015-0598291C6 F - Filing deadline for various forms |
Income Tax Act - Section 85 - Subsection 85(1) |
where a return filing deadline falls on a Saturday, the deadline for the T2057 also is extended to the Monday |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 22, 2015-0598301C6 F - Extension of time to file |
Income Tax Act - Section 165 - Subsection 165(1) |
extension of individuals' return deadline also extends objection deadline |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 23, 2015-0598311C6 F - Excessive eligible dividend designation |
Income Tax Act - Section 185.1 - Subsection 185.1(2) |
filing of s. 185.1(2) election in (non-prescribed) manner |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 24, 2015-0598261C6 F - Calcul du revenu de placement total - annexe 7 |
Income Tax Act - Section 129 - Subsection 129(4) - Aggregate Investment Income |
allocation of investment counselling fees as between interest and dividends |
2015-12-09 |
9 October 2015 APFF Roundtable Q. 25, 2015-0598321C6 F - Omission of deducting a dividend under 112(1) |
Income Tax Act - Section 152 - Subsection 152(1) |
IC 75-7R3 still applies to requests for refunds for errors made in already-filed returns |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 1, 2015-0588941C6 F - Critical illness insurance |
Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(a) - Subparagraph 39(1)(a)(iii) |
critical illness policy transferred free of capital gains tax |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 2, 2015-0595841C6 F - Stock option, disposition, newly-acquired security |
Income Tax Act - Section 7 - Subsection 7(1.31) |
shares acquired on option exercise must be disposed of in one transaction to avoid basis averaging |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 3, 2015-0588951C6 F - Deductibility of interest – ss. 20.1(1) |
Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) |
no source disappearance where interest-free advance to sub is forgiven |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 4, 2015-0588971C6 F - T1135 and voluntary disclosure |
Income Tax Act - Section 220 - Subsection 220(3.1) |
currently no waiver of T1135 penalty before 10 years previously |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 4, 2015-0588971C6 F - T1135 and voluntary disclosure |
Income Tax Act - Section 162 - Subsection 162(7) |
CRA is studying whether the $2,500 penalty for late T1135 filings applies automatically |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 5, 2015-0588981C6 F - Foreign currency stock market transactions |
Income Tax Act - Section 261 - Subsection 261(2) |
CRA considers that NYSE stock trades should be translated at the noon exchange rate on the settlement date |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 6, 2015-0595851C6 F - Income of a trust payable to a beneficiary |
Income Tax Act - 101-110 - Section 104 - Subsection 104(24) |
CRA will not accommodate a trust which merely distributes all it can |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 7, 2015-0589001C6 F - Charities Registration Process |
Income Tax Act - Section 248 - Subsection 248(1) - Registered Charity |
complete applications may speed application processing by four months |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 8, 2015-0593091C6 F - Assumption of a debt by a beneficiary of a trust |
Income Tax Act - 101-110 - Section 107 - Subsection 107(2) |
CRA generally accepts that loss of a s. 107(2) rollover can be avoided, where a trust owes debt to a capital beneficiary, by refinancing the debt with a bank |
2015-12-09 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 9, 2015-0596611C6 F - Transfer 70(6) |
Income Tax Act - Section 70 - Subsection 70(6) |
non-application if replacement property distributed to spousal trust |
2015-12-02 |
2 November 2015 External T.I. 2014-0558991E5 F - Loan from an Amateur Athlete Trust |
Income Tax Act - Section 143.1 - Subsection 143.1(1.2) - Paragraph 143.1(1.2)(d) |
genuine loan to athlete with adequate prospect of repayment not a transfer of property |