Search - connection

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. ...

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. ...

21 July 2019- 10:53pm CRA finds that a dividend received by a trust and immediately paid to a connected corporate beneficiary was taxed under Part IV if the connection ceased before the trust year end Email this Content On June 23, 2017, a discretionary family trust receives a dividend on its shares of Opco and immediately on-pays that amount to a family corporation beneficiary (Holdco) to which Opco is connected at that time. ...

10 January 2023- 10:54pm The expanded s. 212(13.1)(a) could impose Part XIII tax on transactions with minimal connection to Canada and could be problematic to foreign fund partnerships Email this Content The August 9, 2022 proposals would amend s. 212(13.1)(a) to deem a partnership to be a person resident in Canada in respect of the portion of payments made by the partnership to a non-resident person that is deductible in computing a partner’s share of the partnership’s income or loss, to the extent that the partner’s share is taxable under Part I of the Act. ...

5 September 2016- 1:44pm Intertain will use an exchangeable share structure in connection with interposing a new public U.K. holding company Email this Content Intertain, which is an OBCA holding company listed on the TSX, holds most of its assets in non-resident subsidiaries and generates substantially all of its (on-line gaming) revenues in Europe through such subsidiaries. ...

Summary of Carl Irvine and Todd Miller, "Canadian Branch Profits Tax- Challenging the Denial of Treaty-Benefits for US LLCs," Newsletter- TerraLex Connections, 26 December 2013 under Treaties – Income Tax Conventions – Art. 4. ...

In finding that Look was not entitled to input tax credits for the GST on its related legal fees and, in particular, that the lawsuit was not brought “in connection with the…termination of a commercial activity” as per ETA s. 141.1(3)(a), C Miller J stated: “[I]n connection with”… is a broad expression but does not…, even on a textual reading allow for the remotest of links, such as a link only arising by way of the “but for” test. … [T]he cost of legal services to chase after directors, who the Appellant claims have absconded with its money, is a need that would have been fulfilled regardless of where the funds emanated from. … He added this helpful (likely obiter) comment: [T]his is not an issue of timing. ... Similarly, if Look had to sue the purchaser of [its assets] long after the completion of the sale for breach of a confidentiality provision, again timing would not preclude a finding of a connection. ...