Search - connection

" How will Canada interpret the reference to "in connection with or incidental to" in applying paragraph 3 of Article XXIX A- what is the required nature of the connection, and the required degree of the connection? ... Court cases dealing with similar expressions used in the Income Tax Act "In connection with": Although the expression "in connection with" would appear to have a broad connotation, the Court indicated in the case of Gene A. ... This decision suggests that in order for an item of income to be considered derived "in connection" with an active trade or business, there should be a direct connection between the item of income and the active trade or business. ...

Principal Issues: Whether services performed by a foreign affiliate in connection with a guarantee or warrantee associated with a product sold by the taxpayer would be considered as a service performed in connection with the sale of the product for the purposes of paragraph 95(3)(b). Position: No Reasons: The service must be performed directly in connection with the sale. ... Therefore services provided by a foreign affiliate to a taxpayer in connection with either a guarantee or a warrantee associated with a product sold by the taxpayer would not qualify for the exclusion under paragraph 95(3)(b) as having been performed in connection with the sale of goods. ...

Tax Treaty Principal Issues: 1) Would income derived "in connection with" a U.S. trade or business include income derived from a "complementary business" as described in the 2006 U.S. ... Position: 1) Yes- in determining whether Canadian-source income is derived in connection with an active U.S. trade or business the CRA will be guided by the Technical Explanation to Article XXIX A(3) of the Canada-U.S. ... Model Income Tax Convention; 2) A portion of the gain would be considered not to be derived in connection with the U.S. trade or business. ...

Reasons: The dividend income paid to USco is not derived from Canada in connection with or incidental to the trade or business of USco. 2019 International Fiscal Association Conference CRA Roundtable Question 8 – Active Trade or Business Test under the LOB Clause Paragraph 3 of Article XXIX-A (this Article hereinafter referred to as the “LOB Clause”) of the Canada-U.S. Tax Convention (the “Treaty”) generally provides that a U.S. resident, that is not a qualifying person under paragraph 2 of the LOB Clause and that is engaged in the active conduct of a trade or business in the U.S., can claim Treaty benefits with respect to items of income that are derived from Canada in connection with or incidental to that trade or business, provided a number of other conditions are met. In a situation where a corporation resident in Canada (“Canco”) pays a dividend to its U.S. resident parent corporation (“USco”), would paragraph 3 of the LOB Clause apply in connection with the dividend paid to USco if such income is indirectly derived through the business of Canco’s foreign affiliate (“FA”) that is a resident in a third country? ...

Question (d) Whether the position be different if the bonus or salary was paid to the beneficiary of the freeze in the ordinary course of the corporation's business or in connection with a post-freeze asset sale by the corporation. ... The payment by the corporation of a bonus or salary to the beneficiary of the freeze in connection with a post freeze asset sale by the corporation, and such a bonus or salary is not commensurate with the value of the services performed and the responsibilities assumed by the beneficiary of the freeze. ... (d) Would your position be different if the bonus or salary was paid to the beneficiary of the freeze in the ordinary course of the corporation's business or in connection with a post-freeze asset sale by the corporation? ...

They import such meanings as "in relation to", "with reference to" or "in connection with". The phrase "in respect of' is probably the widest of any expression intended to convey some connection between two related subject matters". ... In addition new paragraph 62(3)(h) provides that utility connections and disconnections, changing addresses on legal documents and replacing drivers' licenses and vehicle permits will now be considered moving expenses. ...

Position: For the purposes of paragraph 3 of Article XXIX A, the interest payment will be treated as derived from Canada by USCo in connection with its active trade or business in the United States in the circumstances described below. ... Response 12 The CRA will treat an interest payment from Canco to USco as being derived by USco in connection with USco's active trade or business in the United States if 1) the payment is in respect of indebtedness that was incurred exclusively for the purpose of earning income from Canco's connected business, or 2) Canco can establish that the interest payment was funded out of the earnings of the connected business. ...

The provision reads in part "the benefits of this [Treaty] shall apply to that resident person [US Parent] with respect to income derived from [Canada] in connection with or incidental to that trade or business (including any such income derived directly by that resident person through one or more other persons that are residents of [Canada]…" Would the CRA consider the gain to be derived from Canada where Canada taxes the gain under domestic law? ... In particular, paragraph 3 provides that treaty benefits may be available to a US resident with respect to income derived from Canada, provided that the income is derived in connection with, or is incidental to, the active conduct of a trade or business (other than certain investment businesses) carried on in the US by the US resident, or a person related to the US resident, and provided that the US trade or business is substantial in relation to the activity carried on in Canada giving rise to the income. ...

In connection with the Plan, the Employer has established a trust (the “LOC Trust”) such that the assets held in the LOC Trust are separate from the assets of the Employer. ... In our view, an amount is not paid as a distribution under the RCA unless the amount is paid from property held in connection with the RCA. ...

In terms of the GAAR, it is our current practice to comment on the application of the GAAR only after reviewing all the facts and circumstances of a transaction in connection with an advance ruling request. ... With regard to the GAAR, it is currently the Agency's practice to comment on the application of subsection 245(2) of the Act only after reviewing all the facts and circumstances of a transaction in connection with a request for an advance ruling. ...