Principal Issues: Whether the concept of “substituted shares” used in subsection 93(2.01) may be interpreted in such a way as to refer to shares owned by a taxpayer in respect of which the taxpayer made a capital contribution consisting of shares of another foreign affiliate.

Position: Yes.

Reasons: See below.

June 22, 2016

Principle Issues: Is the reimbursement by an employer of certain moving expenses incurred by an employee a taxable benefit under paragraph 6(1)(a) in a given situation?

Position: General comments

Reasons: Question of fact. If the reimbursed moving expenses would have been deductible by the employee under section 62, had it not been for the reimbursement by the employer, we generally are of the view that the reimbursement of these expenses would not constitute a taxable benefit for the employee under paragraph 6(1)(a).

Principal Issues: 1) Can the CRA confirm that the Additional Subsidized Childcare Contribution in Quebec is deductible in computing an individual's income; 2) If yes, can the CRA confirm in which year an individual may deduct this additional contribution; 3) What documents should an individual provide to justify the deduction claimed with regard to the additional contribution on his/her income tax return?

Principal Issues: 1) Should there be tax withholding on payments, that are not taxable per paragraph 81(1)(a), made to a participant of a PRPP who is an Indian? 2) If so, what documents should the plan administrator request from the participant to justify not withholding tax on such payments?

Position: 1) Yes, exception if a letter of authority is issued to the participant under subsection 153(1.1). 2) A copy of the letter of authority issued by the CRA to the participant per the discretionary power of the Minister.

Principal Issues: Would an entity, who is a non-profit organization per paragraph 149(1)(l), lose its tax-exempt status due to a clause in its constitution which provides that in the event of winding-up, amalgamation or dissolution, all of its assets are to be transferred to a municipal authority within the meaning of section 149(1)(c)?

Principal Issues: 1. Does the definition of member pursuant to subsection 135(4) apply to define a member of a cooperative corporation for the purpose of paragraph 136(2)(c)?

2. If the answer to question 1 is no, what is the definition of a member of a cooperative corporation?

Position: 1. No.
2. The term member will have the meaning ascribed in the statute under which the cooperative corporation was incorporated. It also depends on its charter and by-laws.

Principal Issues: Whether a joint election, as defined in subsection 60.03(1), can be made by a pensioner and a pension transferee where (1) the pensioner has become a bankrupt during a calendar year or (2) the pension transferee has become a bankrupt during a calendar year.

Position: Yes, in both situations.

Principal Issues: Whether subsection 256(1.3) applies when a child is 18 years old at the end of the taxation year of a corporation to determine whether that corporation is associated with another in a taxation year.

Position: Yes if the child was under 18 years of age at any time in the taxation year of the corporation.

Reasons: Wording of subsections 256(1) and 256(1.3).

XXXXXXXXXX 2015-061092
Sylvie Labarre, CPA, CA

December 8, 2015

Subject: Associated Corporations

3 December 2015 T.I. 2015-0613761E5 F - Capital Dividend Account-translation