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The shareholders transferred their shares of DC on a s. 85 rollover basis to two transferee corporations (the TCs) formed respectively for four of the five siblings and for the second sister, the two types of property were transferred on a pro rata and net asset rollover basis to the two TCs for consideration including TC preferred shares, those preferred shares were redeemed for notes, the TCs immediately established their first taxation year-ends and DC was wound up into the TCs under s. 88(2) (with the redemption notes being extinguished by operation of law and with any remaining CDA account flushed out using s. 88(2)(b)(i)). ...

17 April 2023- 11:23pm Bell Telephone – Tax Court finds that Bell Canada received single supplies of electricity from its Ontario electricity suppliers so that their full charges were subject to provincial ITC recapture Email this Content Bell Canada was required as a result of ETA s. 236.01 and the related regulation to recapture 100% of the input tax credits that it claimed in respect of the 8% Ontario HST that it paid on the consideration for the supplies to it in Ontario of electricity. ...

5 February 2025- 8:02am Bell Canada – Federal Court of Appeal finds that Ontario electricity suppliers made single supplies of electricity notwithstanding separate regulatory and delivery charges Email this Content Bell Canada was required as a result of ETA s. 236.01 and the related regulation to recapture 100% of the input tax credits that it claimed in respect of the 8% Ontario HST that it paid on the consideration for the supplies to it in Ontario of electricity. ...

DC then distributed a proportionate share of its net assets to a new subsidiary of TC (Newco) in consideration for preferred shares of Newco, which were redeemed for a note, which was assumed by TC on a Newco winding-up. ...

The appellants acquiring such FMO units from TOM in consideration for issuing $161M in promissory notes. ... The units of FMO being repurchased by FMO for nominal consideration. The appellants had full (FMV) cost for their FMO units when acquired in step 2, and the capital gains distributions did not reduce the ACB of their units by virtue of s. 53(2)(h)(i.1)(A) and (B)((I). ...

IV and safe income exclusions under s. 55(2) can be doubled up 7 October 2021 APFF Roundtable Q. 6, 2021-0900961C6- APFF Q.6- Minimum Tax Carryover and TOSI General Concepts- Transitional Provisions and Policies CRA will honour incorrect AMT carryforward balances that arose due to an error in the CRA form Income Tax Act- Section 120.2- Subsection 120.2(3)- Paragraph 120.2(3)(b) CRA will not retroactively adjust returns that relied on a form error permitting TOSI to increase additional tax carryforwards 7 October 2021 APFF Roundtable Q. 7, 2021-0900971C6 F- Economic dependence Income Tax Act- Section 251- Subsection 251(1)- Paragraph 251(1)(c) financial dependence as described in the jurisprudence is indicative but not dispositive of a non-arm’s length relationship 7 October 2021 APFF Roundtable Q. 8, 2021-0900981C6 F- Cost Recovery Method in IT-426R (Archived) Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) a limited partnership cannot use a cost recovery earnout 7 October 2021 APFF Roundtable Q. 9, 2021-0901101C6 F- Part IV tax exception vs eligible and non-eligible Income Tax Act- Section 55- Subsection 55(2) payment of non-eligible dividend by an Opco with both NERDTOH and ERDTOH to Holdco avoids s. 55(2) if the resulting s. 186(1)(b) tax is not refunded as part of the same series 7 October 2021 APFF Roundtable Q. 10, 2021-0901001C6- Application of subsection 184(3) and 185.1(3) Income Tax Act- Section 185.1- Subsection 185.1(3) concurrence can be given to the election in a share sale agreement before the excessive eligible dividend designation is identified Income Tax Act- Section 184- Subsection 184(3) CRA generally will accept the concurrence by a share vendor to an s. 184(3) election in advance of the excessive eligible dividend being identified 7 October 2021 APFF Roundtable Q. 11, 2021-0901011C6 F- Application of subsection 98(3) Income Tax Act- Section 98- Subsection 98(3) s. 98(3) could apply to wind-up of partnership with substantial goodwill Income Tax Act- Section 98- Subsection 98(5) a post-wind up drop down transaction would preclude the application of s. 98(5) 7 October 2021 APFF Roundtable Q. 14, 2021-0901041C6 F- Meaning of Any consideration received by Donee Income Tax Act- Section 118.1- Subsection 118.1(13)- Paragraph 118.1(13)(c) “consideration … received” in s. 118.1(13)(c) includes a s. 84(3) deemed dividend 7 October 2021 APFF Roundtable Q. 15, 2021-0901051C6 F- Exemption pour résidence principale Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(g) the s. 40(2)(g) formula can be prejudicial where there is delayed home construction on vacant land 7 October 2021 APFF Roundtable Q. 16, 2021-0901061C6 F- 2021 APFF Q.16- Disclosure of a counter letter Income Tax Act- Section 152- Subsection 152(4)- Paragraph 152(4)(a)- Subparagraph 152(4)(a)(i) failure to disclose a counter agreement is neglect or carelessness Income Tax Act- Section 116- Subsection 116(3) CRA may be willing to issue a letter confirming that no s. 116 certificate is required because the true vendor is a resident 7 October 2021 APFF Roundtable Q. 17, 2021-0901071C6- Application of section 120.4 Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Amount- Paragraph (e)- Subparagraph (e)(i) exclusion where business from which the dividend was derived had ceased in a prior year Income Tax Act- Section 120.4- Subsection 120.4(1)- Arm's Length Capital- Paragraph (c) a capital dividend from a related business was not a source of arm’s length capital 7 October 2021 APFF Roundtable Q. 18, 2021-0901091C6- TOSI continuity rule for inherited property Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Amount- Paragraph (e)- Subparagraph (e)(ii) s. 120.4(1.1)(b)(ii) can apply to shares distributed by inter vivos trust but as directed in will, so that (e)(ii) exclusion can apply Income Tax Act- Section 120.4- Subsection 120.4(1.1)- Paragraph 120.4(1.1)(b)- Subparagraph 120.4(1.1)(b)(ii) a dividend on shares that were distributed by an inter vivos trust, as directed in a will 15 years previously, can be excluded by s. 120.4(1.1)(b)(ii) 7 October 2021 APFF Roundtable Q. 19, 2021-0901121C6 F- APFF – ITR Remissions Income Tax Act- Section 152- Subsection 152(1) rate increase for rulings work 7 October 2021 APFF Roundtable Q. 20, 2021-0910491C6 F- ITRD internal evaluation process ...

The balance of 85 went back to Shamrock as the consideration for a share of revenues from the production, with Shamrock using 80 of that sum to purchase a deposit which was used, as to the interest thereon, to fund the required stream of income payment to the LLP (which matched the investors’ interest expense) and, as to the deposit’s principal, to ultimately make a final payment to be applied to fund the repayment of their principal owing. ...

However, as the beneficiary may therefore realize a gain on the deemed disposition of her capital interest in the trust, it may be more efficient, subject to applicable foreign tax considerations, for the non-resident trust to effect an actual disposition of the property before the distribution. ...

The solution was for PWR to then transfer high basis assets to the Holdcos in consideration for preferred shares of the same class, so that the PUC of the preferred shares held by Mr. ...

In his concurring reasons, Allsop CJ stated respecting the assimilated Art. 9 rule: [W]ere CAHPL seeking to borrow for five years on an unsecured basis with no financial or operational covenants from an independent lender, in order to act rationally and commercially and conformably with the interests of the Chevron group to obtain external funding at the lowest possible cost consistently with any relevant operational considerations, it would do so with Chevron providing a parent company guarantee, if such were available. ...