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The CRA’s general position on the calculation of the shareholder benefit from the personal use of corporate property is described in paragraph 11 of Interpretation Bulletin IT- 432R2, Benefits Conferred on Shareholders (Archived), which states in part: The calculation of the amount or value of the benefit is usually based on the fair market rent for the property minus any consideration paid to the corporation by the shareholder for the use of the property. ... Any consideration paid to the corporation by the non-resident shareholder or by the individual that does not deal at arm’s length with the non-resident shareholder for the use of the property is deducted from the imputed rent. ...

This loss may be denied pursuant to subparagraph 40(2)(g)(ii) of the Act unless the debt had been (i) acquired by the taxpayer for the purpose of gaining or producing income from a business or property (other than exempt income); or (ii) acquired as consideration for the disposition of capital property in an arm's length transaction. ...

Consideration will be given by the CRA to whether any pre-section 212.3 cases involving foreign affiliate dumping could be challenged under existing anti-avoidance rules, including section 245. ...

Reasons: In light of the variety of interests that could be granted as consideration for the farmee's undertakings, it is appropriate to consider any particular interest that is to be granted in the context of an individual advance income tax ruling application and according to the historical basis for the administrative treatment. 2012 Canadian Petroleum Tax Conference Question 4-- Farmout Arrangements The CRA's longstanding position on farmout arrangements which do not give rise to proceeds of disposition to the farmor is set forth in IT-125R4, paragraph 14. ...

In determining whether a corporation is a small business corporation, the CRA does not take into consideration the portion of a corporation's refundable dividend tax on hand for which no dividend refund is made. ...

Provided that the child acquired this interest without consideration, it is our view that subsection 148(8) would apply to the transfer of the policy from the parent to the child, such that the deceased parent would be deemed to have disposed of the policy, immediately before the transfer, for proceeds of disposition equal to the adjusted cost basis of the policy to the parent, and the child will be deemed to have acquired an interest in the policy at a cost equal to those proceeds. ...

As such the "interest" component would be part of the purchase price, rather than consideration for money due, owing to or belonging to the vendor. ...

New subsection 245(4.1) of the general anti-avoidance rule (“GAAR”) provides that if an avoidance transaction is significantly lacking in economic substance it is an important consideration that tends to indicate that the transaction results in a misuse or abuse under subsection 245(4). ...

Possibly, where FMV consideration has otherwise been given and terms are identical to those of an arm's length transaction. ... Based on prior CRA positions in respect of subsection 15(1), in the case of a CRIC providing a guarantee on the debt of a subject corporation for no fee, CRA would generally not view the provision of such a guarantee as the conferral of a benefit if fair market value consideration were otherwise given in exchange for the guarantee and it would be reasonable in the circumstances to conclude that a party dealing at arm's length would provide the guarantee on the same terms. ... CRA Response Where a subsection 212.3(2) deemed dividend has been triggered by a foreign controlled CRIC providing a guarantee for no consideration in respect of a subject corporation's debt and the deemed dividend was reduced by a reduction of PUC under subsection 212.3(7), the mere repayment of the underlying debt (which would relieve the foreign controlled CRIC of its guarantee obligations) would not satisfy the requirements of subsection 212.3(9) in order to reinstate the PUC. ...

Reasons: See below. 2016 International Fiscal Association Conference CRA Roundtable Question 3 – Application of subsections 84(3) & (4) to a functional currency tax reporter Assume that a Canadian corporation (“Issuer”) with a US$ “elected functional currency” (“EFC”), within the meaning of subsection 261(1), issues for full fair market value consideration preferred shares to a shareholder (“Shareholder”) with a redemption value of US$100,000 at a time when US$1.00 = C$1.00 and that this amount is added to the stated capital of the preferred shares. ... Where there is still doubt in a particular situation, including where certain anomalies appear to arise based on these principles, we would invite taxpayers to submit additional questions to us for our consideration. ... From a strict tax perspective, as noted in our introductory comments above, the maintenance of legal stated capital in a foreign currency does not change any of these answers as PUC is fundamentally a C$ tax concept, absent functional currency considerations. ...