CRA releases the official version of the 2021 APFF Financial Strategies and Instruments Roundtable

16 June 2022 - 10:59pm
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After having published its official versions of most of the (regular) 2021 APFF Roundtable questions the previous week, CRA has now published the official version of 11 of the 12 questions comprising the 2021 APFF Financial Strategies and Instruments Roundtable. We did not notice any substantive changes from the preliminary answers given by it in October 2021. At that time, we provided our translations of those answers, but only summaries of the questions. We are now providing full-text translations of the questions as well.

Q.2 (regarding the treatment of a gift in Quebec of a part interest in an insurance policy to a charity) still has only the preliminary answer.

For your convenience, the Table below links to the translated questions and to our summaries thereof.

Translated severed letter Summaries under Summary descriptor
30 March 2022 External T.I. 2017-0737181E5 F - Right to receive income from a trust Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(ii) clause suspending the right to income on bankruptcy would not satisfy s. 73(1.01)(c)(ii)
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 1, 2021-0899661C6 - Application of paragraph 20(1)(bb) Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) licensed securities dealers satisfy the principal business test and reasonable management fees paid to them are deductible
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 3, 2021-0896031C6 F - Règles sur les pertes apparentes Income Tax Act - Section 54 - Superficial Loss application of superficial loss rule to reacquisition of identical shares by spousal RRSP on the 30th day
Statutory Interpretation - Interpretation Act - Section 27 - Subsection 27(5) counting 30 day period starting with disposition
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 4, 2021-0895991C6 F - Déduction pour don de bienfaisance corporatif Income Tax Act - Section 123.4 - Subsection 123.4(1) - Full Rate Taxable Income - Paragraph (b) no charitable deduction can reduce aggregate investment income
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 5, 2021-0903871C6 F - HBP - Breakdown of marriage or common-law partners Income Tax Act - Section 146.01 - Subsection 146.01(1) - Regular Eligible Amount - Paragraph (f) individual could make an HBP withdrawal after she started living separate and apart (but still in same house) from her common-law partner
Income Tax Act - Section 248 - Subsection 248(1) - Common-Law Partner former common-law partners can live separate and apart in the same house, and cessation of their status is effective the first day
Income Tax Act - Section 146.01 - Subsection 146.01(2.1) - Paragraph 146.01(2.1)(a) when two spouses separate in the same co-owned house, one can make an HBP withdrawal to purchase the co-ownership interest of her spouse
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 6, 2021-0896061C6 F - Prolonged Administration of an Estate Income Tax Act - 101-110 - Section 104 - Subsection 104(1) extended administration clause created an extended trust
Income Tax Act - 101-110 - Section 104 - Subsection 104(6) s. 104(18) overrode the s. 104(6) requirement to make income payable in the year
Income Tax Act - 101-110 - Section 104 - Subsection 104(18) s. 104(18) can apply where an executor has discretion to defer the payment of income for the benefit of minor beneficiaries over an extended period
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 7, 2021-0899681C6 F - Stock option, Short sale and Identical property Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) CRA is still reviewing whether and when cryptocurrencies may not be foreign property
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 8, 2021-0899701C6 F - Post-mortem planning - Pipeline Income Tax Act - Section 84 - Subsection 84(2) a pipeline transaction can use an existing corporation rather than a Newco
Income Tax Act - Section 84.1 - Subsection 84.1(1) pipeline transaction can be structured to access hard ACB
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 9, 2021-0903501C6 F - RRSP overcontribution and RRIF withdrawal Income Tax Act - Section 204.2 - Subsection 204.2(1.2) - J an RRSP or RRIF withdrawal has an immediate impact on tax on the cumulative excess
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 10, 2021-0896101C6 F - Death of seg. fund policyholder - income allocatio Income Tax Act - Section 138.1 - Subsection 138.1(1) - Paragraph 138.1(1)(f) accrued income under a segregated fund is not deemed by s. 138.1(1)(f) to be a right or thing
Income Tax Act - 101-110 - Section 104 - Subsection 104(24) deeming of an amount to be payable for s. 104(24) purposes does not create a legal entitlement to it
7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 11, 2021-0896021C6 - APFF Q.11 - T1135 and situs of cryptocurrencies Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) CRA is currently reviewing whether and when cryptocurrencies may not be foreign property