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CRA stated: [W]e will generally accept that tax paid to a foreign country will be an income or profits tax notwithstanding that it is computed by reference to gross revenue if the tax is part of a comprehensive income tax regime and is tightly linked and subordinate to a tax that is computed by reference to income or profits….The following factors would be considered indicative…: * a single tax statute contains the option to pay tax on gross income or tax on net income; * there is the ability to elect annually between the two taxation regimes; and * the rate of tax applied on net income is not unreasonably high. ...

The Queen [f.n. [1998] 1 S.C.R. 198]… confirmed the importance of the realization principle under which amounts received or realized by a taxpayer – free of conditions or restrictions as to their use – are taxable in the years in which they are realized subject to any contrary provision in the Income Tax Act or other rules of law. ...

., a corporation that generated rents that, given the level of activity, constituted income from property) cannot qualify as excluded shares, whereas Examples 10 of CRA’s “ Guidance on the application of the split income rules for adults ” found that dividends received by siblings (now, over 25) following a sale of one of Real Estateco’s rental properties at a gain were from excluded shares, and Example 12 found that Spouse A, aged 65 who owned 95% of the shares of Investco, whose active business was actively managed by Spouse A (with no involvement of Spouse B) before it became a portfolio company, held that 95% bloc as excluded shares. When asked to reconcile Q.7 with the latter two examples, CRA stated: Example 10 was intended to illustrate the exclusions with respect to reasonable return … and excluded shares. As for Example 12, the latter also covered the exception for excluded shares, but also the deeming rule provided in subparagraph 120.4(1.1)(c)(i) providing relief for spouses of business owners who turned 64 before the end of the year. … In addition, to demonstrate that the various exclusions were applicable not only to entities that earn income from an active business, such as a manufacturing corporation, but also to entities that carry on a business of earning income from property, such as a property rental business (in Example 10) or an investment management business (in Example 12), we had assumed that these corporations had a sufficient level of activity such that their income could be considered as derived from a business. ...

CRA responded: When a taxpayer ceases to be a partner of a partnership in the course of a fiscal period of the partnership, the deeming rule in paragraph 96(1.01)(a) applies so as to deem the taxpayer – for purposes inter alia of subsection 96(1) and section 103 – to be a partner of the partnership at the end of its fiscal period. ...

. … [T]he number of events to which this policy is applied must remain reasonable …. ... Therefore, it is necessary to include the GST/QST paid by the employer …. ...

. … Individual A will be absent for her entire 2020 taxation year …. As a result, Aco's business will not be an excluded business in respect of Individual A for her 2020 taxation year, as well as for subsequent taxation years in the permanent disability scenario. That said, [where] the various exclusions, including those respecting an excluded business … do not apply in a particular situation, the underlying logic is that, in such circumstances, the most appropriate test, in determining whether the income from a related business respecting a specified individual should be excluded from the calculation of split income, should be based on the general test as to whether the amount constitutes a "reasonable return" based on the specific criteria applicable in the circumstances, including the work performed, the property contributed, the risks assumed, the total amounts paid or payable and such other factors as may be relevant. ...

B died before amounts were paid under the RRIF to the legal representative of the deceased last annuitant … the conditions of paragraph (a) [of "designated benefit"] cannot be met. Where … an amount from the RRIF of the deceased last annuitant is paid to the estate of the deceased and an Eligible Recipient [as described in s. 146(1)- refund of premiums] is a beneficiary of the estate (as legatee or heir), the amount is not paid to the Eligible Recipient "out of or under the fund" and this situation does not comply with paragraph (b)…. ...

11 October 2013 Roundtable, 2013-0495281C6 F- Question 9- APFF Round Table-- summary under Paragraph 212(1)(l) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(l) transfer to RRSP or RRIF of surviving non-resident spouse: SIN required; payment can be made directly to RRSP/RRIF of surviving spouse in accordance with joint instructions even where no specific non-will designation is made Has the position in 2002-0141355- that an RRSP can be transferred to the RRSP of a surviving non-resident spouse, who can open an RRSP, even if he or she does not have a Social Insurance Number ("SIN") – changed? ... In such a situation, subsection 146(8.1) deems the amount paid to the deceased annuitant's legal representative as being received by the surviving spouse as a benefit that is a refund of premiums, and not by the legal representative, to the extent that the amount would have been a refund of premiums if it had been paid under the plan to the beneficiary spouse of the annuitant's estate and that it is designated jointly by the legal representative and the surviving spouse in prescribed form T2019 filed with the Minister. … In this particular situation, it is our view that the holding of a SIN by the non-resident spouse is necessary in order to proceed with the registration of an RRSP of which he or she is the annuitant and to file the information return required by virtue of subsection 214.1(1) of the Income Tax Regulations (the "ITR"). Indeed, it is our understanding that a surviving spouse is required, pursuant to subsections 237(1.1) and 214.1(1) ITR, to provide a SIN to the issuer of an RRSP who, in the year of the transfer of a refund of premiums to which paragraph 60(l) applies, must complete an information return in prescribed form with respect to amounts paid as contributions under the plan. … Our positions relating to the transfer of a RRIF to a non-resident surviving spouse are similar to those … above regarding the transfer of an RRSP at death. … With respect to the payment made as a result of the death of the spouse of a non-resident who has not been designated as a beneficiary in the RRSP contract but who is the beneficiary of the deceased spouse's estate, we are of the view that the tax-neutral transfer provisions in subparagraphs 212(1)(l)(i) and (ii) generally cannot be applied since the payment should generally be made under the deceased annuitant's RRSP to the legal representative of the deceased annuitant and not directly transferred to an RRSP of which the surviving spouse is the annuitant. ...

CRA stated: … [W]here the tenant of a leased property receives from the owner of that property an amount to obtain the termination of its lease … such an amount represents proceeds of disposition of part or all of the leasehold interest. … The definition of "principal residence" in section 54 provides that a leasehold interest may be a principal residence. ...

. … [S]uch fees would be fully deductible pursuant to paragraph 20(1)(bb) provided that they are reasonable in relation to the services received and that they are in respect of the administration or management of shares or securities. ... Accordingly, the principal business of a person carrying on a financial services business and offering insurance, investment and lending services is, inter alia, providing services in respect of the administration or management of shares or securities even if the activities relating to those investment services alone represent … less than 50% of the person's total activities. … [A] person licensed by one of the Canadian Securities Administrators to advise on the advisability of buying or selling certain shares or securities or to provide services in respect of the administration or management of shares or securities may be presumed to satisfy the "principal business" condition. ...