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IX, s. 1, and for making exempt supplies of financial distributions to resident unitholders) It is suggested that since “an ILP may undertake certain activities which allow it to claim ITCs, including making zero-rated supplies of financial services to non‑residents or, pursuant to proposed amendments to section 186 of the ETA, holding shares or debt in related corporations whose property (all or substantially all) was last acquired for use exclusively in a commercial activity,” consideration should be given to making the s. 225.4(6) election, so as to access or increase ITC claims (i.e., oust the second rule above). ...

19 July 2020- 10:44pm CRA considered that promotional services provided by a public sector body to a sponsor were not subject to GST/HST given the substantial advertising was not the main motivation [corrected link] Email this Content ETA s. 135 deem a supply by a public sector body (PSB) of a service, or a licence of copyright, a trade-mark, trade-name or other similar property to a “sponsor” for exclusive use by the sponsor in publicizing the sponsor’s business, to not be a supply – except that this rule is stated not to apply where the consideration for this supply by the PSB to the sponsor is “primarily” for radio, TV, newspaper, or magazine advertising. ...

That does not preclude benefits received where, in addition to the required connection between benefit and employment, there also may have been considerations extraneous to employment. ...

The ARQ denied tax credits for the wages cost of work performed on the contracts by MDA on the basis that the consideration received by MDA from the Government was “contract payments” – whose definition (similarly to the federal definition in ITA s. 127(9)) relevantly referred to “an amount in respect of an expenditure of a current nature … of a taxpayer … payable by the Government of Canada … or other public authority … for scientific research and experimental development to be performed for the authority.” ...

After repeating its position in Q.6-2 on its FAQ page as to the scope of the CRA policy for excluding “extraordinary items” from qualifying revenues, CRA – before stating that it was a question of fact whether the Payments were extraordinary- stated: Relevant considerations in the current situation could include whether the Contractor had received payments in the past upon the temporary suspension of operations at the mine, whether the Contractor was entitled to receive compensation upon a suspension of operations at the mine under its contract with the Operator and the degree of control the Contractor had with respect to the Payments and Payment Adjustments. ...

Regarding whether such adjustments should be regarded as being to the purchase price for the real estate, so that normally no GST/HST should be charged on such adjustments (based on the ETA ss. 221(2) and 228(4) self-assessment rule or a residential real estate exemption), CRA treated this as essentially a question relating to an application of the single-supply doctrine, so that “if an obligation is inextricably tied to the real property itself, then it is likely not a separate supply from the sale of the real property and the adjustment likely increases or decreases the value of consideration” for the real estate, whereas “if it is determined that an obligation giving rise to the adjustment is a separate supply from the sale of the real property that is not incidental to the sale of the real property, then the application of the GST/HST to the adjustment depends on the nature of the separate supply itself.” ...

26 August 2021- 11:53pm 9267-9075 Québec – Tax Court of Canada finds that failure to remit GST on reporting a sale to an insolvent purchaser precluded a subsequent bad debt credit Email this Content In 2012, a company (“9267”) sold domain names to another corporation (“9210”) that was owned equally by its individual shareholder and an unrelated individual for cash consideration to be paid in instalments. ...

Shortly after completion of the arrangement, some companies associated with the Healthcare of Ontario Pension Plan will contribute eight properties to Primaris REIT in consideration for $200M in cash and units of Primaris REIT, resulting in them ending up with a 26% equity interest. ...

24 January 2022- 11:21pm Robillard Estate – Tax Court of Canada finds that MacDonald established that s. 84(2) applied to a speedo pipeline – but doubts MacDonald’s correctness Email this Content An estate engaged in accelerated pipeline transactions in which it transferred shares (stepped up under s. 70(5)) of a portfolio company (“Holdco”) to a Newco in consideration for a note, with Holdco being wound up into Newco a day later – and with the note being repaid by Newco to the estate about three weeks later. ...

The resulting breadth of the required public disclosure will make become a significant factor in some structurings, including careful consideration of which entities will have activity in Quebec. ...