| 7 October 2020 APFF Roundtable Q. 1, 2020-0852131C6 F - Meaning of reasonable error |
Income Tax Act - Section 207.06 - Subsection 207.06(1) |
examples of what CRA has accepted as a “reasonable error” in making an RRSP or TFSA over-contribution |
| Income Tax Act - Section 204.1 - Subsection 204.1(4) |
meaning of "reasonable error" |
| 7 October 2020 APFF Roundtable Q. 2, 2020-0852141C6 F - APFF 2020 Roundtable Q2 - Request for Information |
Income Tax Act - Section 231.1 - Subsection 231.1(1) |
CRA may request personal bank statements when conducting indirect reviews |
| 7 October 2020 APFF Roundtable Q. 3, 2020-0852151C6 F - Safe income |
Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) |
repayment of loan, that had funded a dividend creating a safe income deficit, out of subsequent earnings reduced SIOH |
| 7 October 2020 APFF Roundtable Q. 4, 2020-0852161C6 F - Election |
Income Tax Act - Section 164 - Subsection 164(6) |
CRA will not follow the ARQ in allowing a s. 164(6) loss carryback claim on a terminal return before the GRE’s T3 return is assessed |
| 7 October 2020 APFF Roundtable Q. 5, 2020-0852171C6 F - Usufruct of a principal residence |
Income Tax Act - Section 248 - Subsection 248(3) |
application of s. 248(3) to usufruct created by will and terminated by death of usufructuary or surrender by her, or assignment or death by bare owner |
| Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) |
s. 70(6)(b)(ii) not satisfied where residence of deceased passes to a usufruct for his surviving spouse for a fixed term of years |
| Income Tax Act - 101-110 - Section 107 - Subsection 107(4) |
application of s. 107(4) to termination of deemed s. 248(3)(a) spousal trust |
| Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) |
a deemed s. 248(3) testamentary usufruct trust might access the principal residence exemption on the spousal usufructuary’s death or on her surrendering her interest |
| 7 October 2020 APFF Roundtable Q. 6, 2020-0852181C6 F - Par. 5(2)(b) of the Employment Insurance Act |
Other Legislation/Constitution - Federal - Employment Insurance Act - Section 5 - Subsection 5(2) - Paragraph 5(2)(b) |
CRA now applies a “proportionate attribution approach” in applying the s. 5(2)(b) test of “control … of … voting shares” |
| 7 October 2020 APFF Roundtable Q. 7, 2020-0852191C6 F - Capital dividend and series of shares |
Income Tax Act - Section 83 - Subsection 83(2.1) |
s. 83(2.1) “should be considered” where one of the main purposes of a reorganization is to stream capital dividends |
| Income Tax Act - Section 83 - Subsection 83(2) |
capital dividends can be paid on one series and not the other |
| 7 October 2020 APFF Roundtable Q. 8, 2020-0852201C6 F - Acheminement du CDC / CDA Streaming |
Income Tax Act - Section 83 - Subsection 83(2.1) |
s. 83(2.1) does not generally apply to the streaming of capital dividends to one of the original shareholders |
| 7 October 2020 APFF Roundtable Q. 9, 2020-0852211C6 - Capital dividend |
Income Tax Act - Section 83 - Subsection 83(2) |
a s. 83(2) dividend election cannot be made on a formula amount |
| 7 October 2020 APFF Roundtable Q. 10, 2020-0852221C6 F - Interest-free loan to a related foreign company |
Income Tax Act - Section 17 - Subsection 17(1.1) |
s. 17 generally does not apply to loans made by individuals, but s. 247 can apply |
| Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(a) |
s. 247 would apply to an interest-free loan made by a Canadian individual to a non-arm’s length non-resident corporation |
| 7 October 2020 APFF Roundtable Q. 11, 2020-0852231C6 F - Designation under subsection 89(14) |
Income Tax Act - Section 89 - Subsection 89(14) |
dividend designation cannnot state it is the GRIP, if less |
| Income Tax Act - Section 185.1 - Subsection 185.1(2) |
an eligible dividend designation must state a dollar amount, and GRIP variances are addressable under s. 185.1(2) |
| 7 October 2020 APFF Roundtable Q. 12, 2020-0852241C6 F - CRA role in the interprovincial arbitration process |
Income Tax Regulations - Regulation 400 |
a taxpayer can make representations at the first level of the process for resolving inter-provincial income allocation issues |
| 7 October 2020 APFF Roundtable Q. 13, 2020-0852251C6 F - Small Business Deduction |
Income Tax Act - Section 125 - Subsection 125(5.1) |
s. 55(2) gain from active-asset shares do not grind business limit |
| Income Tax Act - Section 125 - Subsection 125(7) - Adjusted Aggregate Investment Income |
s. 55(2) gain from a share can qualify as a gain from an active asset for AAII purposes |
| 7 October 2020 APFF Roundtable Q. 14, 2020-0852261C6 F - Section 128 E.T.A. |
Excise Tax Act - Section 128 - Subsection 128(4) |
a USA stripped away voting control of a parent over its wholly-owned subs so that it was not closely related to them for ETA purposes |
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