| 15 June 2022 STEP Roundtable Q. 1, 2021-0922021C6 - 104(21.2) Designation |
Income Tax Act - 101-110 - Section 104 - Subsection 104(21.2) |
formula in s. 104(21.2) requires a pro rata allocation of the QSBC portion of trust capital gains to the beneficiaries to whom capital gains are allocated |
| 15 June 2022 STEP Roundtable Q. 2, 2022-0926761C6 - 104(4)(a)(ii.1) Election |
Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a) - Subparagraph 104(4)(a)(ii.1) |
CRA will accept that an election is filed with a return even if the return is filed late |
| 15 June 2022 STEP Roundtable Q. 3, 2022-0924801C6 - Electing Contributor and Electing Trust |
Income Tax Act - Section 94 - Subsection 94(1) - Electing Trust |
election can be filed with a late-filed return |
| Income Tax Act - Section 94 - Subsection 94(1) - Electing Contributor |
election must be filed by filing-due date even if return itself is filed late |
| 15 June 2022 STEP Roundtable Q. 4, 2022-0929911C6 - Death and Tax Payment over 10 Years |
Income Tax Act - Section 159 - Subsection 159(5) |
CRA does not have rigid guidelines as to what is “acceptable security” |
| 15 June 2022 STEP Roundtable Q. 5, 2022-0928231C6 - Trust and Debt Forgiveness |
Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount - Element B - Paragraph B(a) |
s. 80 may not apply where a trust distributes a debt, owing by a beneficiary, to the beneficiary |
| 15 June 2022 STEP Roundtable Q. 6, 2022-0928191C6 - Acquisition of control |
Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(a) - Subparagraph 256(7)(a)(i) - Clause 256(7)(a)(i)(A) |
application of s. 256(7)(a)(i)(A) where trustee is replaced by related trustee |
| Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) |
rebuttable presumption that all the trustees of a trust form a control group |
| 15 June 2022 STEP Roundtable Q. 7, 2022-0928291C6 - paragraph 88(1)(d.3) |
Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.4) |
deemed disposition under s. 104(4)(a.4) is not itself sufficient to access s. 88(1)(d.3) regarding a subsidiary of the trust |
| Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d.3) |
alter ego trust could use s. 88(1)(d.3) for post-mortem bump if trust deed directed the post-mortem transfer of subsidiary’s shares to new parent |
| 15 June 2022 STEP Roundtable Q. 8, 2022-0928251C6 - TOSI and multiple businesses |
Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Business |
individual’s contributions to a business are considered substantial if they are integral to its success |
| Income Tax Act - Section 120.4 - Subsection 120.4(1.1) - Paragraph 120.4(1.1)(a) |
splitting long hours between many companies may oust s. 120.4(1.1)(a) |
| 15 June 2022 STEP Roundtable Q. 9, 2022-0929391C6 - Section 43.1 - Life Estate |
Income Tax Act - Section 43.1 |
application of s. 43.1 where a remainder realty interest is transferred to personal trust and there is a subsequent life interest surrender |
| 15 June 2022 STEP Roundtable Q. 10, 2022-0929361C6 - Taxation Year-end of a GRE |
Income Tax Act - Section 249 - Subsection 249(1) - Paragraph 249(1)(b) |
GRE's taxation year ends when it is wound up |
| 15 June 2022 STEP Roundtable Q. 11, 2022-0929331C6 - Joint Spousal or Common-law Partner Trust |
Income Tax Act - Section 75 - Subsection 75(2) |
s. 75(2) does not apply to 2nd-generation income |
| Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(c) - Subparagraph 73(1.01)(c)(iii) |
once a joint spousal etc. trust is established, the s. 73(1) rollover applies to non-jointly contributed property of a spouse |
| 15 June 2022 STEP Roundtable Q. 12, 2022-0929321C6 - Sale to Alter Ego Trust |
Income Tax Act - Section 73 - Subsection 73(1) |
the s. 73(1) rollover can apply to a sale for cash proceeds at a gain over ACB |
| 15 June 2022 STEP Roundtable Q. 13, 2022-0929381C6 - 164(6) – Amending Deceased’s Final T1 Return |
Income Tax Act - Section 164 - Subsection 164(3) |
commencement of refund interest where loss transferred from GRE to terminal return |
| Income Tax Act - Section 164 - Subsection 164(6) - Paragraph 164(6)(e) |
s. 164(6) amendment must be made through filing an amended return, not a T1 Adjustment Request |
| 15 June 2022 STEP Roundtable Q. 14, 2022-0930221C6 - Info on new T3 EFILE process |
Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(c) |
now efiling T3 returns |
| 15 June 2022 STEP Roundtable Q. 15, 2022-0927531C6 - Meaning of Habitual Abode in Canadian Tax Treaties |
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| 15 June 2022 STEP Roundtable Q. 16, 2022-0927601C6 - Foreign Entity Classification of a Foundation |
Income Tax Act - 101-110 - Section 104 - Subsection 104(1) |
the classification of civil law foundation is determined on a case-by-case basis |
| 15 June 2022 STEP Roundtable Q. 17, 2022-0929511C6 - Deceased Taxpayer and Stock Options |
Income Tax Act - 101-110 - Section 110 - Subsection 110(1) - Paragraph 110(1)(d) |
s. 110(1)(d) deduction can now apply to stock option benefits realized on death |
| 15 June 2022 STEP Roundtable Q. 18, 2022-0924791C6 - McNeeley et al v. The Queen |
Income Tax Act - Section 248 - Subsection 248(1) - Employee Benefit Plan |
trust providing for distributions of employer shares on a fully discretionary basis is not governed by s. 7 |
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