Search - connection

In connection with agreeing that the alter ego trust is entitled to a deduction under s. 104(6)(b) for the amount of dividend income received by it that was made payable to the primary beneficiary prior to the death, CRA discussed the effect of B in the formula limiting the deductible amount as follows: [E]lement B of the formula restricts the deduction available to the trust as follows: for the trust’s year in which the primary beneficiary dies and prior years, clause (i)(A) of the description of element B ensures that no deduction may be made by the trust for income which became payable to a beneficiary other than the primary beneficiary, and for the trust’s year in which the primary beneficiary dies, subclause (i)(B)(I) ensures that no deduction is available to the trust in respect of any amount included in the trust’s income because of the application of subsections 104(4) to (5.2) (the “deemed disposition rules”) or subsection 12(10.2) of the Act. ...

Since no amount was paid in connection with the cancellation of these shares, the application of subsection 84(3) would not cause Opco to be deemed to have paid a dividend on a separate class of shares at the particular time. ...

Art. 12 of the Canada-U.K Treaty exempted copyright royalties, but there was an exclusion from this exemption for payments in respect of motion pictures or of works on film, videotape or other means of reproduction for use in connection with television broadcasting. ...

23 March 2004 External T.I. 2003-0049031E5 F- Paragraphe 15(2) de la Loi et "montant remis"-- summary under Excluded Obligation Summary Under Tax Topics- Income Tax Act- Section 80- Subsection 80(1)- Excluded Obligation loan included in income under s. 15(2) was excluded obligation re its subsequent forgiveness In connection with finding that if an interest-free loan to the adult child of Opco’s sole shareholder in in 2003 was to be included in the child’s income pursuant to s. 15(2), the subsequent forgiveness of the loan in 2006 did not result income under s. 15(1.2), CRA stated: The expression "forgiven amount" in subsection 15(1.21) refers, inter alia, to the meaning that would be given to that expression by subsection 80(1), which indicates, inter alia, that the lesser of the principal amount of the debt or the amount for which the debt was issued is reduced by the portion of the principal amount of an excluded obligation. ...

CRA then stated: Assuming that the expenses [instead] are incurred in connection with a convention held during a sea cruise, it is our view that no amount for expenses incurred to attend the convention would be deductible since the convention would be held outside the geographical boundaries of the association that is the sponsor of the convention, as discussed in paragraph 2 of IT-131R2. ...

(e) effectively requires a combined 24-month holding period for s. 110.6(14)(f)(i) or (iii) transactions In connection with indicating that, where an individual shortly after commencing a proprietorship, transfers all of the assets used such active business to a newly-incorporated corporation in exchange for treasury shares of the corporation, the individual can benefit from the s. 110.6(2.1) deduction even if the individual disposes of those shares within 24-months of having commenced the proprietorship, CRA stated: [T[here is no mechanism in [the s. 110.6(14)(f)(ii)] relief rule that combines the period during which the business was operated as a sole proprietor with the period during which the shares of the corporation were held to ensure that this period is at least 24 months. ...

3 February 2005 External T.I. 2005-0111871E5 F- Intérêts / mise à part de l'argent-- 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) cash damming to pay current deductible business expenses is an eligible use which continues with the business Regarding the deductibility of interest on borrowed money used for current business expenses in a cash damming context, CRA stated: Where the borrowed money is used to pay a current expense that is incurred for the purpose of earning business income and is deductible … the test of a direct connection is satisfied in the year the expense is incurred and in subsequent years. … [I]nterest on borrowed money used to pay a current expense incurred to earn business income will continue to be deductible as long as the source of income, the business, does not disappear. ...

28 June 2001 External T.I. 2001-0069865 F- CRÉDIT-BAIL-- summary under Subsection 248(3) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(3) Construction Bérou interpretation of s. 248(3) was erroneous In connection with finding that cancelled IT-233R and Construction Bérou should not be followed in considering a taxpayer to have acquired property under a leasing agreement, CCRA stated: Desjardins J.A. of the Federal Court of Appeal stated that the former wording of subsection 248(3) allowed the concepts of beneficial ownership (possession, use and risk) to be applied to the leasing contracts at issue. ...

10 January 2002 External T.I. 2001-0090325 F- UTILISATION DES VEHICULES-- summary under Subsection 6(2) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(2) commuting in connection with employer requirement to keep vehicle overnight at home was personal use – but not emergency use Outside normal working hours, management employees of a municipality are required to park the automobiles used in its day-to-day operations at their homes for use in quickly responding to emergencies situations such as water leaks or fires. ...

In the second situation, the vendor in connection with the sale of all the assets of his business for $1 million executed an affidavit in accordance with the Civil Code which listed $0.7 million in liabilities but did not list a debt for $0.5 million that was about to be assessed. ...