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22 March 2021- 10:51pm CRA rules on a pipeline bump transaction Email this Content CRA ruled on pipeline transactions respecting common shares of Opco which the deceased held on death, in which: the estate redeems common shares of Opco on which the capital gains exemption was claimed, resulting in a deemed dividend and a capital loss, which is carried back under s. 164(6) the estate transfers its common shares of Opco to the Newco newly-incorporated by it mostly in consideration for a demand note of Newco Opco continues to carry on its business for at least 12 months thereafter, and is then permitted to amalgamate with Newco in connection with the amalgamation, Amalco designates, in its return of income for its first taxation year, an amount under ss. 87(11) and 88(1)(c) and (d) to bump the ACB of land that had been held continuously by Opco from before the date of the death until immediately prior to the amalgamation the Newco note is gradually repaid over a period of at least one year after the amalgamation, with Amalco continuing to carry on the business. ...

The aircraft is delivered to Lessee under the novated lease when it is physically situated outside of Canada, following which the Lessee brings the aircraft into Canada in connection with its international transportation business. ...

CRA indicated the quoted words did not establish a test that the beneficiary’s interest must be acquired as a result of the particular transfer, and the definition instead seeks to ensure that there is no connection between the transfer, and the person or partnership that already has (or will have) an interest in the non-resident trust. ...

It purchased three pieces of equipment for use exclusively for the handling of materials already gathered by a cable shovel in connection with the washing, sorting and crushing of the various products. ...

In connection with its appeal of the CRA denial of these rebate claims, CIBC brought a motion for its appeal to be allowed on the basis that the substance of the supply was already determined in the 2009 Decision. ...

In finding that this deduction was not precluded by s. 53 of the same Act, which provided that “[i]n calculating the profits of a trade, no deduction is allowed for items of a capital nature,” Lord Hamblen and Lady Rose accepted the findings below that the taxpayers’ “employees operate in a professional services business whose success depends on the availability of skilled and motivated professionals and the grant of share options to those employees is part of their remuneration package” and that the “Debits were … recurring costs that had a connection with the Appellants’ earning of income ….” ...

20 June 2022- 11:30pm Marino – Federal Court of Appeal confirms the Oceanspan principle that a non-resident who does not compute income from any source for ITA purposes does not have a taxation year Email this Content An individual with no connection to Canada paid significant tuition fees while in attendance at U.S. universities prior to 2012 then, on immigrating to Canada, claimed his “unused” tuition tax credits as a deduction from Canadian tax. ...

25 September 2022- 11:17pm Deegan – Federal Court of Appeal confirms that FATCA-required disclosures do not constitute an unreasonable seizure contrary to the Charter Email this Content Woods JA confirmed the rejection by the Federal Court of the position of two American citizens, who had had no significant connection with the U.S. since early childhood, that the information-reporting requirements in ITA Part XVIII (the “Impugned Provisions”) resulted in the unreasonable seizure of financial information belonging to U.S. persons in Canada, contrary to s. 8 of the Charter. ...

This policy was assigned as security at the request of the lender (by way of a movable hypothec) in connection with a loan taken out to earn income from a business or property. ...

6 December 2022- 11:06pm Carasco – Federal Court indicates that CRA relief under s. 152(4.2) must accord with the applicable substantive provisions Email this Content A taxpayer sought the deduction, in a relief application made pursuant to s. 152(4.2), of $195,000 in legal expense incurred by her in otherwise statute-barred years in connection with a human-rights action. ...