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Department's Position A business carried on by a foreign affiliate of the taxpayer will not constitute an "investment business", as that term is defined in subsection 95(1) of the Act, where the affiliate employs more than 5 employees full time in the active conduct of the business, or the equivalent of more than 5 employees full time in the active conduct of the business taking into consideration only the services provided by its employees and those other circumstances you have described above. ...

The Bulletin was drafted taking into consideration the existing rules of law prior to these events, namely, the rules of law established in the decisions rendered on September 28, 2001, by the Supreme Court of Canada in Ludco and Singleton. ...

In the Fortino 1 and Manrell 2 cases, it was held that the vendor of the shares received the non-competition payment as consideration for the disposition of his right to compete with the purchaser of the shares and that this was a capital payment. ...

Where a non-resident disposes of shares that are not taxable Canadian property, the consideration for which includes an earnout payment, it is our view that the fair market value of the right to receive an amount under the earnout clause would generally be included in the proceeds of disposition of the shares, provided the first four conditions in paragraph 2 of IT-426R, as outlined above, are met. ...

A disposes of his shares of the capital stock of Opco 1 to Opco 2 in consideration for a note. ...

The determination of whether the GAAR would apply to any particular situation would require a full consideration of all the facts and circumstances. ...

Reasons: This issue of whether subsection 164(6) should be amended involves tax policy considerations which are the purview of the Department of Finance. 2020 STEP CRA Roundtable – November 26, 2020 QUESTION 15 – Subsection 164(6) limitations The conditions to be eligible to utilize the double tax relieving provisions of subsection 164(6) are very restrictive. ...

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. ...

Such discretionary relief is granted on a case-by-case basis, by the appropriate delegated authority, pursuant to subsection 220(2.01), with due consideration to all of the relevant circumstances. ...

Position: Part of larger issue under consideration by Department of Finance. ...