CRA has published its 2018 IFA Roundtable responses

19 June 2018 - 11:55pm
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Except as noted in the previous post, there do not appear to be any significant departures or elaborations in the official 2018 IFA Roundtable Answers published last week by the Rulings Directorate from those provided orally at the Conference. Accordingly (with the same exception) we have not generated further posts on these responses – but, for convenience of reference, provide the table below linking to the official responses and (for the nine questions that had interpretive content) our summaries thereof and our descriptors.

Topic Descriptor
16 May 2018 IFA Roundtable Q. 1, 2018-0748181C6 - New U.S. GILTI Tax Treaties - Income Tax Conventions - Article 29 Treaty does not fetter the right of the US to impose GILTI tax with reference to Canadian subs’ income
Treaties - Income Tax Conventions - Article 26 Cdn competent authority will not recognize claims that GILTI tax is contrary to Art. VII
16 May 2018 IFA Roundtable Q. 2, 2018-0749181C6 - Principal Purpose Test in MLI Treaties - Multilateral Instrument - Article 7 - Paragraph 7(1) CRA will not provide quick and crisp PPT guidance
16 May 2018 IFA Roundtable Q. 3, 2018-0749171C6 - Interaction s.91(5) s.93.1(2)(d)(i) Income Tax Act - Section 91 - Subsection 91(5) appplication of s. 91(5) to LP shareholder of FA
Income Tax Regulations - Regulation 5900 - Subsection 5900(3) corporate-owned LP treated transparently to avoid a surplus anomaly re s. 91(5) dividend
Income Tax Act - Section 93.1 - Subsection 93.1(2) - Paragraph 93.1(2)(d) - Subparagraph 93.1(2)(d)(i) s. 93.1(2)(d)(i) limit does not reflect acquisition-debt interest deduction of LP
16 May 2018 IFA Roundtable Q. 4, 2018-0748171C6 - Penalties for Non-Residents Income Tax Act - Section 247 - New - Subsection 247(4) potential extension/waiver where incorrect (no PE) claim for Treaty relief
Income Tax Act - Section 220 - Subsection 220(3) a non-resident who incorrectly claimed a no-PE Treaty exemption can apply for penalty relief
16 May 2018 IFA Roundtable Q. 5, 2018-0745501C6 - Meaning of “merged or combined” in 40(3.5)(c)(i) Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(c) - Subparagraph 40(3.5)(c)(i) suspended loss on the sale of CFA to Subco was not de-suspended on s. 88(3) wind-up of CFA
Income Tax Act - Section 88 - Subsection 88(3) s. 88(3) wind-up of CFA formed a new corporation
16 May 2018 IFA Roundtable Q. 6AB, 2018-0748191C6 - MAP Program, APAs
16 May 2018 IFA Roundtable Q. 7, 2018-0750261C6 Income Tax Act - Section 39 - Subsection 39(2) “sustaining” a s. 39(2) loss on a USD obligation requires more than locking-in the equivalent Canadian-dollar amount
16 May 2018 IFA Roundtable Q. 8, 2018-0749481C6 - Update on Entity Classification Income Tax Act - Section 248 - Subsection 248(1) - Corporation French SLP a corp
Income Tax Act - Section 96 French SLP established as an SECS viewed as corp/grandfathering relief re LLPs/LLLPs
16 May 2018 IFA Roundtable Q. 9, 2018-0748151C6 - T1134s & Country by Country Reporting Income Tax Act - Section 233.4 - Subsection 233.4(4) comparison of T1134 and CbC reporting
16 May 2018 IFA Roundtable Q. 10, 2018-0748161C6 - Proposed New Filing Deadline T1134 Income Tax Act - Section 233.4 - Subsection 233.4(4) CRA may provide filing extensions when the T1134 filing deadline has been accelerated