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• The recipient must be identifiable or ascertainable. Who is the beneficiary? • The interest must not be subject to a condition precedent (except for the expiry of a previous interest). ... • The interest need not vest "in possession"; it may vest only "in interest. ...

It is not clear whether this new view applies to a taxpayer that elected to have regulation 5901(2)(b) – and thus subsection 90(2) – apply retroactively for a distribution after December 20, 2002. ...

François Fournier-Gendron, "Amendments to the Act: The Impact of Proposed Subsection 247(2.1) on Section 17", Canadian Tax Highlights, Vol. 27, No. 12, December 2019, p. 5-- summary under Subsection 247(2.1) Summary Under Tax Topics- Income Tax Act- Section 247- New- Subsection 247(2.1) Potential imputation of interest under s. 247(2.1) irrespective of the operation of s. 17 (p. 5) Subsection 247(2.1) will … affect the exceptions contained in section 17. … [C]ross-border short-term loans that do not meet the conditions of subsection 17(8) could now be subject to an imputation of interest based on an arm's-length rate (the CRA argued this position in… 2017-0691071C6 …but without explicit legislative support). ... This raises the possibility that an amount of interest will be included in the lender's income in addition to the recognition of a shareholder benefit for the borrower equal to the amount of the loan. … Potential anomalies where a transaction is recharacterized for s. 17 but not s. 247(2) purposes (pp. 5-6) Finally, section 17 has detailed deeming rules that are included in subsections 17(2) for indirect loans, 17(4) for loans through partnerships, 17(5) for loans through trusts, 17(6) for loans through partnerships and 17(11.2) for back-to-back loans. Subsection 247(2) … contains no such deeming rules, but it has a rule that may allow for recharacterization …. ...

FTC purposes under revised Code s. 863 (p. 655) [There is] a (conceptually) irrational revision of the IRC section 863 sourcing rule for inventory sales … made by the 2017 Tax Cuts and Jobs Act [teh TCJA]) …. ... That is because Article XXIV(1) – taking into account the sourcing rule in Article XX1V(3) – seems to be straightforward in providing those credits. ... … [R]egarding the later-in-time rule and the oft stated view that it requires clear Congressional intent for a treaty to be overridden, consider the comments referenced above … [which] indicate a clear absence of any congressional expression of that intent …. ...

Recently, the Crown's approach in Cameco … was, in essence, congruent with the “value creation” concept…. ... OECD recharacterization approach includes treating debt as equity (p. 13) [I]n the OECD’s recent [Discussion Draft on Financial Transactions released July 3, 2018] … an example is … given of a purported loan being accurately delineated as equity, chiefly because of a low likelihood of repayment within the specified term. ... Departure of new guidelines from s. 247 (p. 14) Not only do these new concepts in the 2017 Transfer Pricing Guidelines depart from the 1995 Transfer Pricing Guidelines, they also have little grounding in section 247 of the ITA or Canadian transfer pricing case law. … Further, the 2017 Transfer Pricing Guidelines' "accurate delineation" concept could cause recharacterization in a domestic Canadian transfer pricing dispute under paragraphs 247(2)(a) and (c) of the ITA in circumstances where not even the explicit mandate in the ITA's transfer pricing recharacterization rule … would do so. ...

No clarification of certification process (p.636) The Ministerial certification process introduced in the 2015 Budget remains unchanged — and unclarified — in the July 31 Draft Legislation. ...

CRA “Canada – US Tax Convention – Agreement between Competent Authorities on the Interpretation of Article V11 (Business Profits)”, (June 26, 2012). ...

(p. 6) The proposal's charging provision operates whenever – vis-à-vis a particular CFA – there is a decrease in a taxpayer's surplus entitlement percentage (SEP), calculated as if the taxpayer were a Canco. ...

.] … An ordinary distribution is taxed in the year of distribution as ordinary income. … An excess distribution … is treated as though it were earned evenly over the period of ownership of the PFICC interest. ... [fn 183: Paragraph (d) of … "non-business income tax" in … 126(7).] ... The challenge with a CFC … is that the corporate investment income is imputed to the professional. ...

Durst, "OECD's Fight Against Income Shifting- and for Its Global Role", Viewpoints, Tax Notes International, 3 December 2012, p. 933-- summary under Article 9 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 9 In a further discussion of the OECD Discussion Draft on Transfer Pricing for Intangibles, he notes (at p. 935) that "transfer pricing rules — like the U.S. cost-sharing regulations — that permit the shifting of income-generating opportunities to affiliates based on the mere transfer of cash allow for the evisceration of a country's tax base through income shifting" (which he earlier referred to as amounting in the case of the US to perhaps $1.7 trillion) and refers to the fallacy that "transfers of intangibles between affiliates do not facilitate tax avoidance as long as the purchaser pays fair market value. ...