Search - 屯门 安南都护府

. … [I]f a child is living with another individual who is providing support for the child at the time of the annuitant's death, the child would not be considered to be financially dependent upon the deceased for support at that time. While Individual A's father did make some financial contributions for… care, it was the Crown who supported [him] …. Consequently … Individual A would not be considered to be financially dependent on the deceased at the time of death for the purpose of a deduction under paragraph 60(l)….. ...

CRA stated: [P]aragraph 80.4(3)(b) provides that subsection 80.4(2) does not apply if the loan or debt is included in the debtor's income under another provision of Part I …. ... However, an assessment under subsection 15(2) is not precluded even if the taxpayer has voluntarily declared a benefit under section 80.4, as subsection 15(2) has priority over section 80.4, as stated in paragraph 10 of … IT-421R2 …. ...

. … In addition … February 24, 2004 Legislative Proposals … which provides relief from the application of the loss limitation rule in subsection 93(2) in certain circumstances, confirms, in our view, that this provision is technically applicable in a situation where a loss on the disposition of shares of a FA is solely due to a currency fluctuation. ...

22 May 2009 Internal T.I. 2009-0312791I7 F- Transfert de biens entre un rentier et son REÉR-- summary under Paragraph 251(1)(c) Summary Under Tax Topics- Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) an RRSP trust’s annuitant does not deal at arm’s length under s. 251(1)(c) with the RRSP Before finding that the purchase of RRRSP property (the “Co-op” shares) by the RRSP’s annuitant at cost was to be treated as the payment of a premium by the annuitant to the extent of the excess over the property’s fair market value, CRA stated: You advised us that the annuitant and the trust that governs the annuitant’s RRSP are not related persons within the meaning of paragraph 251(1)(b), since the trust is described in paragraph (a) of the definition of "trust" in subsection 108(1) …. However … the fact that the annuitant and his RRSP are not deemed to be related persons under paragraph 251(1)(b) does not mean that they are not otherwise not dealing with each other at arm's length at any particular time within the meaning of paragraph 251(1)(c). ... In any event, the very fact that the annuitant is prepared, in order to acquire units of the Co-op from the RRSP, to pay an amount that exceeds their FMV, which is nil … confirms in our view that the annuitant and the trust governing the RRSP do not deal at arm's length in this transaction. ...

However, … CRA … accepts that the portion of the dividend that may be considered safe income on hand attributable to the gain on the shares may be included in the GRIP of the corporation receiving the dividend if the corporation … designates such amount as a separate taxable dividend under paragraph 55(5)(f). ...

CRA responded: [Under] the principle in … Poulin … an expense paid in a year in which a taxpayer is no longer carrying on business may be deducted in that year since the taxpayer cannot be considered to have ceased to carry on business as long as the taxpayer is engaged in following up on actions taken by the taxpayer in the course of carrying on business. … [P]remiums paid by a taxpayer to maintain liability insurance in respect of actions taken in the course of carrying on the taxpayer's business would be deductible in computing the taxpayer's income. ...

5 September 2018 Internal T.I. 2017-0698241I7- Interpretation of subsection 93(4)-- summary under Subsection 93(2.01) Summary Under Tax Topics- Income Tax Act- Section 93- Subsection 93(2.01) s. 93(2.01) applied to capital loss resulting from s. 94(3) basis bump But for s. 94(3), a Canadian corporation (ACo) would have realized a capital loss of $1 million on the liquidation and dissolution of a wholly-owned non-resident subsidiary (FA1) which, in turn, held FA2 and FA3.After the Directorate found that s. 94(3) applied to deny the loss and add it to the ACB to ACo of the shares of FA2 and FA3, it then considered the question: If the portion of such denied loss added to the ACB of the FA2 shares under s. 93(4)(b) was $50,000 (resulting in ACo’s ACB of the FA2 shares becoming $100,000 (as otherwise determined under s. 88(3)) + $50,000 = $150,000), would the s. 93(2.01) rules determine ACo’s loss on the disposition of the FA2 shares? ... Absent the subsection 93(2.01) loss limitation rule, ACo would have an otherwise determined (capital) loss of $40,000 (i.e. $110,000- $150,000) arising on its disposition of its FA2 shares …. ...

. … Since LLC1 borrowed funds in a situation where there was no cost to LLC1, the fair market value of the shares of LLC1 have increased as a result of the non-interest bearing loan. … Therefore … at the time the non-interest bearing loan is made, there is an increase in the fair market value of the shares of LLC1 held by NRTrust. ...

In addition, you have advised … that … there is no change in the capital structure of the Corporation, the number of outstanding shares, the number of shares held by any shareholder, or the interest, rights, or privileges attached to any share. [Accordingly] …. the actions undertaken would not, in and of themselves, constitute a redemption, acquisition, or cancellation of any share of the Corporation, or otherwise result in a disposition of a share of the Corporation. ...

The Directorate noted that the relevant BC ITA provisions were modeled on ITA s. 125.4(1) – labour expenditure – (b)(iii) and s. 125.5(1) – Canadian labour expenditure- (b)(iii). In finding that this shareholding satisfied the above “belong to” test, rather than the shares belonging to the trust under the position of the TSO, the Directorate stated: [T]he shares … belong to [the individual] and not the Trust for purposes of the tax credit. ...