Search - connection

23 July 2014- 9:27am CRA finds that a non-resident partnership breaks a closely-related group connection for HST/GST purposes Email this Content Among other requirements for the HST/GST nil consideration election, those electing must be specified members of a "qualifying group" of corporations or Canadian partnerships which are closely related.  ... However, if there instead is a US partnership in one of the two chains, this will break the required connection, so that the election is not available. ...

15 April 2015- 10:50am CRA narrowly construes the s. 95(3)(b) safe harbour for “services performed in connection with the… sale of goods” Email this Content In s. 95(3)(b) there is a safe harbour- from the general rule in s. 95(2)(b)(i) that income of a foreign affiliate from providing services to its Canadian parent (which are deductible in computing the parent’s Canadian business income) is foreign accrual property – for "services performed in connection with the purchase or sale of goods. ...

20 September 2016- 11:55pm CRA notes that employee meal reimbursements other than in connection with travel are not taxable benefits if made principally to enhance employee efficiency Email this Content In response to an inquiry on the taxability of the reimbursement of meal expenses to employees, CRA indicated that although normally it only accepts that meal reimbursements are not taxable benefits where made in connection with travel outside the metropolitan area of the employer’s establishment, “where the principal objective of the reimbursement of meal expenses is to ensure that the employee's duties are undertaken in a more efficient manner during the course of a work shift, then the employer could be the one who principally benefits,” in which case there is no taxable benefit. ...

18 November 2015- 11:05pm CRA finds that the connection test in XXIX-A(3) of U.S. ... One of these tests (the "Connected Test") is that the item of income, for which the Treaty benefit is sought, is derived from the source state (Canada) in connection with or incidental to the (U.S.) actively-conducted trade or business of the U.S.   ...

30 August 2017- 11:49pm CRA finds that post-retirement benefits paid directly by the employer under a SERP did not generate refunds of the Part XI.3 tax paid in connection with the RCA trust established to pay related LC fees Email this Content Payments of the promised benefits under a supplemental executive retirement plan were secured through an LC provided by a bank, with the employer funding the annual LC fees by making contributions to a trust, which then paid the fees. ... (c) of the s. 207.5(1) “refundable tax” definition – so that no refund of the refundable tax was generated- CRA stated: [A]n amount is not paid as a distribution under the RCA unless the amount is paid from property held in connection with the RCA. ...

23 March 2018- 1:34am ONEnergy – Federal Court of Appeal finds that litigation services to recover fraudulent bonuses following a business’ termination were acquired in connection with that business Email this Content A company (“Look”) sold all the assets of its business and then successfully sued its executives for having paid themselves inflated bonuses and option termination payments out of the sales proceeds. Webb JA found that Look was entitled to input tax credits for the HST on its related legal fees, as the litigation servicers were acquired “in connection with the…termination of a commercial activity” as per ETA s. 141.1(3)(a). ...

14 July 2024- 11:25pm CRA confirms that a RRIF may not make a Reg. 8303(6) qualifying transfer to a RPP in connection with a past service event Email this Content Reg. 8303(6) contemplates qualifying transfers from, for example, an RRPS or a money purchase provision of a registered pension plan, to a defined benefit provision of a registered pension plan (including an individual pension plan) to fund past service benefits, for example, when additional periods of pensionable service are credited. ...

2 December 2018- 10:26pm CRA indicates that interest on money borrowed by parent for use in connection with a triangular amalgamation to redeem preferred shares issued by Target can be deductible Email this Content In a triangular amalgamation, the proceeds of a third party loan are used by ParentCo to redeem preferred shares issued by TargetCo as part of the transaction. ...

26 November 2012- 9:26am Mac's Convenience Stores- Tax Court finds that an ITC entitlement for a related financial supply arises whenever there is "some connection" between the financial supply and the registrant's commercial activities Email this Content An HST/GST provision (ETA s. 185(1)) entitles a registrant (other than a financial institution) to claim input tax credits on purchases used in the making by it of financial services, provided that the purchased goods or services "relate" to a commercial activity of the registrant.  ...