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Should residency and permanent establishment issues arise in future audits, the CRA will give due consideration to the impact of COVID-19 travel restrictions in its overall evaluation of facts. ...

QUESTION The "old" flow-through share rules are contained in subparagraph 66.1(6)(a)(v) which states that Canadian exploration expense ("CEE") of a taxpayer means any expense incurred after May 6, 1974 that is: (v)      any expense referred to in any of subparagraphs (i) to (iii.1) incurred by the taxpayer pursuant to an agreement in writing with a corporation, entered into before 1987, under which the taxpayer incurred the expense solely as consideration for shares, other than prescribed shares, of the capital stock of the corporation issued to him or any interest in such shares or right thereto, Where a limited partnership enters into a flow-through share agreement with an exploration corporation, the reference to the "taxpayer" in subparagraph 66.1(6)(a)(v) is to the limited partnership. ...

(see q. 22 attached)  I wish to bring to your attention a somewhat similar position taken at the 1990 Round Table, concerning loan guarantee's from non-residents for no consideration.  ...

Danilack notes, it is easy to do so by simply "invoking a different comparable set, applying a different methodology, or pointing to extraneous factual considerations." ... I put forward this proposition because, as we all know, it's relatively easy to challenge any transfer price or expense allocation simply by invoking a different comparable set, applying a different methodology, or pointing to extraneous factual considerations. ...

Corporation B wants to acquire some of the common shares of its capital stock owned by Corporation A for a consideration less than their fair market value (FMV), and Corporation A wants to sell these common shares to Corporation B for the same consideration. ...

Would the date of acquisition of the property by the deceased be taken into consideration? ... Est-ce que la date d'acquisition du bien par le défunt serait prise en considération? ...

En général, l'ARC devrait tenir compte, entre autres, de ces considérations pour déterminer l'approche à prendre dans une situation particulière donnée. ... In general, the CRA must take into account, among others, these considerations to determine what approach to use in a particular given situation. ...

However, where the non-resident has transferred or assigned that obligation to a resident of Canada and the purchaser has made a payment to the non-resident as consideration for that obligation and the right to receive an interest payment in respect of that obligation, the portion of that payment that relates to the right to receive the interest payment would be considered an "amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to the non-resident person as, on account or in lieu of payment of, or in satisfaction of, interest". ... In the Hall case, it was concluded that the consideration received by a taxpayer on the sale of matured bond coupons to a third party constituted "amounts received.....in lieu of payment of....interest" in section 6(1)(b) of the pre-72 Act. ...

Question 8 If a taxpayer's involvement in a venture is motivated by tax considerations, will this be viewed as a personal element such that it could affect the determination of whether the activity has a sufficient degree of commerciality to be considered a source of income under the Act? Response 8 If a taxpayer is motivated by tax considerations when he or she enters into a business or property venture, this will not detract from the venture's commercial nature or characterization as a source of income under the Act. ...

Position: At this time, the CRA is in the process of consulting internal stakeholders to evaluate and potentially develop a position on this issue, while giving consideration to the impacts on other foreign reporting forms. 2021 Canadian Tax Foundation Conference CRA Roundtable Question 14: Failure to properly file a T1135 and Section 233.4 Generally, under section 233.3, every taxpayer owning “specified foreign property” with a total cost amount greater than $100,000 is required to file a Form T1135 in respect of each of its taxation years in which the $100,000 total is exceeded. ... At this time, the CRA is in the process of consulting internal stakeholders to evaluate and potentially develop a position on this issue, while giving consideration to the impacts on other foreign reporting forms. ...