Principal Issues: Whether the exception in paragraph (k) of the definition of salary deferral arrangement would be applicable in the situation described?
Position: No.
Reasons: The plan provides that the bonus is paid in the fourth calendar year following the taxation year in which the services are rendered by the employee.
7 OCTOBER 2016 APFF Roundtable
Question 4
Salary deferral agreement
Principal Issues: 1- What is the tax treatment of an amount received by a vendor following cancellation of promise to purchase his/her personal house? 2- If it's a capital gain, can the vendor claim principal residence exemption? 3- For the buyer, is the amount paid a capital loss?
Position: 1- The vendor would realize a capital gain of $50,000. 2- Paragraph 40(2)(b) would not apply. 3- There is no disposition of property, consequently there would be no capital loss within the meaning of paragraph 39(1)(b).
Principal Issues:
Through an example, the CRA essentially was asked:
1-What is the CRA’s interpretation when a taxpayer sells a building where a change has occurred during a previous year regarding the relative use of the building by the taxpayer and the taxpyer's child but without any resulting change in the total rental and personal use of the property?
2-Must the taxpayer in this situation file a form T2091 in the year of the sale of the building for each eligible housing unit during the period of total detention of the property?
Principal Issues: 1. If a corporation has two short tax years due to an acquisition of control, will the CRA accept that only one form T106 needs to be filed in respect of each relevant non-resident? 2. If so, would the CRA accept that the filing deadline with respect to the single T106 be the corporation’s filing-due date for the latest of the two taxation years?
Principal Issues: 1. What is the status of the CRA's administrative position with respect to the filing of T4A slips for professional services rendered to a corporation? 2. Would it be possible for the CRA to administratively exempt payers from filing T4A slips for services rendered when the payee remits to them an invoice with a valid tax number?
Position: 1. Same as the previous position, keeping in mind that some exceptions are provided. 2. No.
Reasons: No changes are deemed necessary.
7 October 2016 APFF Roundtable Q. 1A, 2016-0652951C6 F - Penalty late filed election-subsection 85(8)
Principal Issues: Whether the penalty for late filed/amended election under subsection 85(8) is applied on a property by property basis or per prescribed T2057 form.
Position: Per form.
Reasons: Long standing position.
FEDERAL TAXATION ROUND TABLE 7 OCTOBER 2016
2016 APFF CONFERENCE
1) ADMINISTRATIVE MATTERS:
1A) 85(8) penalty property-by-property
Principal Issues: In a given scenario, whether subparagraph 84.1(2)(a.1)(ii) applies to reduce the adjusted cost base of shares for the purpose of section 84.1?
Position: Yes.
Reasons: Wording of the Act.
9 OCTOBER 2015 FEDERAL TAX ROUNDTABLE
2015 APFF CONFERENCE
Q. 7 Application of ITA section 84.1
Facts
Principal Issues: Impact of an amalgamation of corporations or the winding-up of a corporation on the calculation of the CDA.
Position: See below.
Reasons: See below.
9 OCTOBER 2015 FEDERAL TAX ROUNDTABLE
2015 APFF CONFERENCE
Question 6 Impact of an amalgamation or winding-up on the calculation of the capital dividend account ("CDA")
In a structure such as this:
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: When applying ss. 18(3.1), will the CRA follow the reasoning adopted in the Janota case?
Position: General comments. It is primarily a question of fact whether certain expenses must be capitalized under ss. 18(3.1).
