Search - connection

It is not clear how a logical or legal connection between interest, on the one hand, and rents or royalties, on the other, can exist as suggested by paragraph 212(3.6)(b). ...

Technical issues (pp. 4-5) Technical issues include: Regarding the connecting factor in s. 55(3.1)(c)(i) that (to disqualify the butterfly) requires that the property be acquired from TC by a non-related person in the same series of transactions or events as the butterfly, s. 248(10) “is broad enough to catch any transactions that have some connection, however remote, with the butterfly” so “that a very conservative interpretation could preclude the TC from ever disposing of property received in the butterfly to a non-related person because the series seemingly continues in perpetuity.” ...

To illustrate the disproportionate nature of the automatic penalty under s. 231.7(6), consider a corporation which provided 95 out of 100 documents requested regarding an audit of three taxation years, and claimed solicitor-client privilege for the other 5 documents and, in connection with CRA seeking a compliance order, the Federal Court determines that there was insufficient evidence to establish that two of the documents were privileged: even though the corporation was substantially compliant, it is subjected to the penalty of 10% of its tax for the three years. ...

Furthermore, if FA 1 has itself obtained financing in connection with its investment business from another foreign affiliate (FA 3), the foregoing could affect the tax treatment of interest income earned by FA 3. ...

Although the connection test in proposed paragraph 212(3. l)(c) is satisfied, the back-to-back rules would not apply in this scenario because the tax on interest paid to the ultimate funder would not exceed the tax on interest paid to the immediate funder. ...

It can thus be seen that a commercial trust with “fixed interests” may be able to escape deemed residence status under section 94, but where a Canadian resident or its controlled foreign affiliate is a beneficiary of such a trust, amounts may be required to be included in income in Canada in connection with such trust under section 94.1 or section 94.2. ...

Whether dividend can be declared and paid simultaneously (p. 7) [T]he Department of Finance expressly stated that dividends paid on common shares could be subject to the character substitution rules, provided the connection test is met…. ...

That CRA (departing from 2019-0798861C6) confirm that the excluded disposition rule in s. 150(5)(b) will be satisfied where all Part I tax owing in respect of the TCP disposition is paid in connection with the issuance of a s. 116 certificate (so that no Canadian return filing- or filings in the case of the limited partners of a foreign private equity fund- is required). ...

In 1816, when Clayton's Case was decided, there seems to have been authority, for saying that the creditor was bound to make his election at once according to the rule of the civil law, or at any rate, within a reasonable time, whatever that expression in such a connection may be taken to mean. ...

No connection or relationship between the persons acquiring prohibited property for the purpose of this aggregation rule is necessary. ...