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2014 Ruling 2014-0530961R3- Cross-Border Butterfly-- summary under Subsection 86.1(2) Summary Under Tax Topics- Income Tax Act- Section 86.1- Subsection 86.1(2) spin-off by U.S. pubco of U.S. spinco after Canadian butterfly In connection with a spin-off by a U.S. public company (Foreign PubCo) of a U.S. subsidiary (Foreign Spinco) to which one of its businesses was transferred, there was a butterfly split-up of an indirect Canadian subsidiary (DC) directly and indirectly holding Canadian portions of the two businesses in question, so that the Canadian transferee corporation (TCo) of DC was a subsidiary of Foreign Spinco. In connection with the subsequent spin-off by Foreign Pubco of Foreign Spinco, CRA ruled that provided that all of the conditions of ss. 86.1(2)(e) and (f) were met, the spin-off was an eligible distribution for purposes of s. 86.1. ...

11 February 2013 External T.I. 2012-0469441E5 F- Aire de plancher- fabrication et transformation-- summary under Paragraph 1100(1)(a.1) Summary Under Tax Topics- Income Tax Regulations- Regulation 1100- Subsection 1100(1)- Paragraph 1100(1)(a.1) washrooms and cafeteria included- along with office if a connection with the M&P personnel In response to a question as to whether floor space representing a cafeteria, washroom and office qualified, CRA stated (TaxInterpretations translation):... ... Similarly... if the nature of the activities performed in the office has a connection with the personnel engaged in the manufacturing and processing in Canada of goods for sale or lease, then the floor space of the office also qualifies as being used for the manufacturing or processing in Canada of goods for sale or lease. ...

17 April 2003 Internal T.I. 2003-0181507 F- PRET SANS INTERET-- summary under Subparagraph 20(1)(c)(i) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c)- Subparagraph 20(1)(c)(i) accessing the exceptional circumstances test requires demonstrating “a sufficient connection between the interest-free loan and an indirect source of the person's income” After surveying the jurisprudence on the exceptional circumstances test, the Directorate stated: Interest deductibility in other situations involving interest-free loans by a person to a corporation of which the person is not a shareholder may be justified on the particular facts of the case, as in Canadian Helicopters … and … Byram … to the extent that the person can show that there is a sufficient connection between the interest-free loan and an indirect source of the person's income. ...

Loss loss on equity swap entered into in monetization transaction was on capital account In connection with its monetization of the shares of a corporation, the taxpayer transferred the shares of that corporation to a Newco ("Corporation2") in consideration for shares of Corporation2, entered into an equity swap with a financial intermediary with respect to the shares of Corporation2 under which it agreed to pay the appreciation in the value of the shares of Corporation2 above a ceiling level, and the counterparty agreed to pay the depreciation in value of the shares of Corporation2 below a floor level, and the taxpayer borrowed money from another financial institution. ... Given the close connection between the loan and the equity swap contract, including the fact that the amount of the loan corresponded to the floor value of the swap contract, the loss sustained by the taxpayer when the equity swap was settled was on capital account. ...

3 December 2004 External T.I. 2004-0089341E5 F- Intérêts et frais juridiques-- summary under Legal and other Professional Fees Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Legal and other Professional Fees legal fees to recovery a legacy were non-deductible In finding that fees of lawyers and experts incurred by the taxpayer, in in connection with bringing an action to recover a legacy payable pursuant to a codicil to a will, were non-deductible, CRA stated: [T]he taxpayer did not incur them for the purpose of earning business or property income since she incurred those fees of lawyers and experts to recover amounts owed to her in connection with a family inheritance. ...

29 August 2001 External T.I. 2001-0097485 F- DEDUCTION DE FRAIS DE SURVEILLANCE-- summary under Paragraph 20(1)(bb) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(bb) supervisory fees paid to intermediary between portfolio manager and taxpayer were non-deductible Regarding the deductibility pursuant to s. 20(1)(bb) of fees paid by a taxpayer to a portfolio supervisor, CCRA stated: Where the principal activity of a taxpayer is to act as an intermediary between taxpayers and their portfolio managers, we are of the view that the person does not appear to be offering services in connection with the administration or management of shares or securities but rather in connection with advisory and recommendation services with respect to the manager. ...

23 January 2020 External T.I. 2019-0796121E5 F- Déduction pour résidence des membres du clergé-- summary under Paragraph 8(1)(c) Summary Under Tax Topics- Income Tax Act- Section 8- Subsection 8(1)- Paragraph 8(1)(c) s. 8(1)(c) does not entail any home office requirement Is a regular minister, in addition to meeting the other conditions set out in IT-141R, required to maintain an office in the taxpayer's residence or use it in connection with the taxpayer’s duties as a member of the clergy in order to qualify for the clergy residence deduction? CRA responded: [P]aragraph 8(1)(c) does not require that the taxpayer in question maintain an office in the taxpayer's residence or use it in connection with the taxpayer’s duties as a member of the clergy in order to qualify for the clergy residence deduction. ...

31 May 2004 External T.I. 2004-0069681E5 F- Adjusted Cost Base of Real Property-- summary under Adjusted Cost Base Summary Under Tax Topics- Income Tax Act- Section 54- Adjusted Cost Base legal fees and settlement payment made in connection with disputed legacy of residence might be an addition to its ACB Although Mr. ... B that was incurred in connection with the acquisition of the Residence. … It is … possible that, through [the] transfer contract, Mr. ... B that would have been incurred in direct connection with the acquisition of the Residence would be added to Mr. ...