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CRA found this tax to be an “income or profits tax” Can the CRA provide any comments on its consideration of what constitutes an “income or profits tax”? ... Foreign Spinco issues shares to Foreign Pubco Notes from Presentation Commencing in 1997 (with 2006-0215751R3), CRA started issuing favourable rulings respecting cross-border butterfly transactions which avoided the s. 55(3.2)(h) problem for such butterflies by using the three-party "vaccine" [i.e., a three-party circular exchange of consideration so that Foreign Spinco is never a shareholder of DC- see Russell, “Cross-Border Butterfly Ruling,”]. ...

Broadly speaking, taxpayers who are generally compliant and cooperative during the audit process should receive some consideration around materiality of the scope, and the number of tax years looked at. ... The integrated team will take into consideration whether the taxpayer has an effective tax control framework. ...

(d) Will the project be expanded to other sectors and if so, can CRA advise which sectors have been selected or are under consideration? ... However, we can provide the following information for your consideration. ... For example, a university whose predominant purpose is education and research would generally not acquire its main campus over 40% for the purpose of making taxable supplies for consideration. ...

That consideration will always be predicated on a review of all the facts and circumstances. ... For example, Father transfers shares of Opco (a small business corporation whose shares are eligible for the CGE) to his children in consideration for a note that is payable over 10 years, claims the capital gains reserve, but does not claim the CGE. The children transfer the Opco shares to a new Holdco in consideration for a note of Holdco, with a view to opco dividends funding note repayments. ...

Although the Income Tax Rulings program is there to provide advance comfort on the tax consequences of a transaction, as noted in IC70-6R12, CRA will not confirm the fair market value of a property, and the Rulings program is not in a position to verify the facts provided – and there are also timing considerations. ... A vendor (Vendor) sells all of its shares of a corporation (Target) to a purchaser corporation (Purchaser) in consideration for, exclusively, shares of the Purchaser. The agreement governing the purchase and sale of the Target shares (“the Agreement”) requires the Vendor to place some of the share consideration received from the Purchaser in escrow (“the Escrow Shares”) pending any downward post-closing adjustments to the purchase price. ...

In Year 1, Holdco1 transfers assets to Opco on a rollover basis in consideration for preferred shares. ... Opco redeems the preferred shares held by Holdco1 in consideration for the $500 of cash, such that there are no assets remaining in Opco afterwards except for the goodwill. ... Realization of gain accrued at the time of acquisition Assume a transfer of property with an accrued gain to a corporation on a rollover basis in consideration for preferred shares. ...

Each case could warrant different considerations based on its particular fact situation, and it may be settled differently. ... Can the CRA confirm that a subsequent transaction to ‘use’ the note or other property (including cash) received as consideration for a share redemption, such as the transfer of the note to Newco in CRA document # 2015-0604521E5, is a necessary trigger for a GAAR determination with respect to paragraph 55(3)(a)? ... Taking into consideration the input of stakeholders, the CRA further pursued its analysis of the legislative system requirements needed to implement the RTPP. ...

(c)(ii)(C) of the “total charitable gifts” in s. 118.1(1) was added to allow for the inclusion, in a trust’s total charitable gifts of the eligible amount of a gift made by the it in a s. 104(13.4)(a)-shortened taxation year, CRA quoted Friedberg (“a gift is a voluntary transfer of property owned by a donor to a donee, in return for which no benefit or consideration flows to the donor,”), and indicated that at common law there is a gift if the taxpayer has donative intent and: there was a voluntary transfer of property to a qualified donee; the transferred property was owned by the donor; and no benefit or consideration flowed to the donor. and that whether a payment by an alter ego trust to a registered charity is a charitable gift by it or a distribution of income or capital to a beneficiary turns on the trust-deed wording and the intentions of the trustee in making the payment. ... It is a question of fact as to whether the husband and wife could be considered to satisfy the excluded business test for a particular year or continue to meet such test thereafter, as consideration must be given to the ongoing nature and labour requirements of the corporation’s business. ... In general, for the purposes of determining whether an amount would have been an excluded amount in respect of a deceased spouse or common-law partner of a specified individual had it instead been included in their income, consideration needs to be given to all their facts and circumstances in the applicable taxation year, including any shares of the corporation owned by them. ...

Although s. 107(2) is not applicable to this situation, consideration could be given to whether s. 248(1) – “disposition” – (f) or s. 107.4(3) could apply to allow the property to be transferred on a tax-deferred basis. We have not considered the application of these provisions in this situation, but note that the determination of whether they could be applicable would require consideration of all the relevant facts and circumstances, including the terms and conditions that apply in respect of both Trust and New Trust. ... At a particular time on November 1, 2020, ACo purchases for cancellation all of its shares owned by BCo for consideration that exceeds the aggregate paid-up capital of those shares, resulting in ACo being deemed to pay a dividend, as computed under subsection 84(3) (“Deemed Dividend”) at that time, to BCo. ...

After further consideration in this case, the Directorate concluded that as the contribution of Note1 by FA2 to FA3 enhanced the dividend-earning potential of the shares of FA3 held by FA2, Note1 should be considered to have been acquired by FA2 for the purpose of earning income from those shares, so that the test in s. 95(2)(a)(ii)(D) was satisfied. ... At a later juncture, Phil made an (at least somewhat off-the-cuff) remark that consideration might be given in Canada to a rule that limited interest deductions to EBITDA minus s. 113 deductions, i.e., to 25% of Canadian-source income. ...