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Bundle Date Translated severed letter Summaries under Summary descriptor 2022-11-30 2022 Ruling 2022-0930901R3 F- Changes to an existing monetization arrangement Income Tax Act- Section 80.6 partial acceleration of a forward contract did not de-grandfather it from the synthetic disposition rules 2004-01-09 17 December 2003 Internal T.I. 2003-0047367 F- Benefit Conferred on Non-arm's Length Person Income Tax Act- Section 246- Subsection 246(1) s. 246(1) applicable to sale of assets by corporation to employee-shareholder at an undervalue Income Tax Act- Section 52- Subsection 52(1) application of s. 15(1) or 246(1) to property distributed by corporation to shareholder would be added to the property’s ACB Income Tax Act- Section 84- Subsection 84(2) s. 84(2) inapplicable on sale by defunct corporation of its assets at an undervalue to one of its shareholders 17 December 2003 Internal T.I. 2003-0047727 F- Right of Use-Deemed Trust Income Tax Act- 101-110- Section 105- Subsection 105(1) no s. 105(1) benefit from personal use of personal-use property of a trust Income Tax Act- 101-110- Section 105- Subsection 105(2) potential s. 105(2) benefit where Opco pays all of the expenses on its property to a portion of which the sister of Opco’s indirect controlling shareholder has a right of (personal) use 9 December 2003 External T.I. 2003-0032585- Immeuble détenu par une succession Income Tax Act- Section 54- Principal Residence- Paragraph (c.1) income beneficiary of estate could be a specified beneficiary using as principal residence Income Tax Act- 101-110- Section 107- Subsection 107(2) s. 107(2) rollover unavailable to an income beneficiary 18 December 2003 Internal T.I. 2003-0044007 F- OPTION D'ACHAT D'ACTIONS RACHETEES Income Tax Act- Section 7- Subsection 7(1)- Paragraph 7(1)(b) full option surrender consideration included under s. 7(1)(b) even though a portion thereof never paid Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(g)- Subparagraph 40(2)(g)(ii) unpaid and defaulted balance of stock option surrender consideration was not property used in a property or business source Income Tax Act- Section 54- Capital Property employee stock option surrender proceeds were not from the disposition of capital property ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2002-01-04 9 January 2002 External T.I. 2001-0089655 F- AVANTAGE AUTOMOBILE Income Tax Act- Section 248- Subsection 248(1)- Automobile- Paragraph (e)- Subparagraph (e)(i) 6-seat pickup not excluded from 90% test Income Tax Act- Section 6- Subsection 6(2) being on-call at home does not diminish the personal benefit from use 10 January 2002 External T.I. 2001-0090325 F- UTILISATION DES VEHICULES Income Tax Act- Section 6- Subsection 6(2) commuting in connection with employer requirement to keep vehicle overnight at home was personal use – but not emergency use 18 January 2002 External T.I. 2001-0092665 F- AUTOMOBILE-VEHICULE PUBLICITAIRE Income Tax Act- Section 248- Subsection 248(1)- Automobile automobile status turns on design, not use (here, only for advertising) Income Tax Act- Section 248- Subsection 248(1)- Automobile- Paragraph (e)- Subparagraph (e)(i) vehicle cosmetically altered for advertising purposes is not thereby used to transport goods or equipment 8 January 2002 External T.I. 2001-0094485 F- EMPLOI SUR UN CHANTIER PARTICULIER Income Tax Act- Section 6- Subsection 6(6)- Paragraph 6(6)(a) s. 6(6) applicable to a non-citizen 21 January 2002 External T.I. 2001-0078735 F- Droit de recevoir une somme Income Tax Act- Section 54- Proceeds of Disposition FMV of contingent right to deferred cash sales proceeds was included in proceeds, with subsequent gain or loss when the contingency was resolved Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) s. 12(1)(g) inapplicable to contingent right to receive deferred cash sales proceeds to the extent the share consideration declined in value Income Tax Act- Section 85- Subsection 85(1)- Paragraph 85(1)(f) s. 85(1)(f) applicable to contingent right to receive deferred cash sales proceeds to the extent the share consideration received under s. 85(1) declined in value 21 January 2002 External T.I. 2001-0080325 F- FRAIS DE VOYAGE-BIENS LOCATIFS Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(h) notwithstanding s. 18(1)(h) jurisprudence, CCRA allows travel expenses incurred for collecting rent, supervising repair work or managing the multiple rental properties ...

26 December 2024- 11:45pm In a new webpage, CRA provides examples of where it will apply GAAR Email this Content In a new webpage on GAAR, CRA has provided examples (briefly summarized below) of where, in its view, GAAR would apply: PUC averaging Subco transfers a property to its parent (Holdco) in consideration for Class B shares of Holdco with the result that, through PUC averaging, there is a substantial increase in the PUC of the Class B shares of Holdco held by an individual. ... The individual’s common shares are transferred to Holdco in consideration for preferred shares with an ACB, PUC and redemption value of $850,000, and for nominal value common shares. ...

Therefore, commercial rationality requires consideration of the reasonable expectations of the best possible outcome for the entity. For the purpose of documenting commercial rationality of a transaction, taxpayers should provide an economic discussion to explain the nature of the transaction and should include consideration of the history of the arrangement and the activity of the broader market to justify the tested party’s decision. ...

In rejecting the Crown's position that such 20% share was taxable consideration for administrative, billing and marketing services supplied to the sleep physicians by MedSleep, Bodie J found that: The fee-sharing agreements were valid for tax purposes notwithstanding that, under provincial health care law, payments for physicians’ services could be made by the provincial health insurance plans to physicians only; and The fee-sharing agreements did not contemplate that MedSleep would provide the alleged admin and marketing services to the sleep physicians and they instead indicated that MedSleep was entitled to a portion of the professional fees generated from medical services provided to the patients. ... V-II-2 (the consideration for which was both its directly charged fees and its 20% share of the sleep physicians' fees), Bodie J found that MedSleep, in tandem with the sleep physicians, supplied institutional health care services referred to in both paras. ...

2 March 2015- 3:05pm The TPSM is often inconsistent with the Canadian transfer-pricing rules Email this Content Unlike Art. 9 of the OECD Model Treaty and Code s. 482, which permit consideration of the overall commercial or financial relations between related entities, the focus in ss. 247(2)(a) and (c) on individual transactions renders it quite difficult to utilize the transactional profit split method in a Canadian context. ...

7 August 2017- 12:51am CRA considers that ABM licence fees generally are GST/HST taxable Email this Content CRA considers that licence fees received by a store owner for hosting an ABM machine generally are consideration for a taxable supply for GST/HST purposes notwithstanding that it is indirectly providing cash-dispensing services to its customers. ...

15 September 2017- 1:14am CRA confirms that s. 38(a.1) prevails over s. 69(4) Email this Content CRA confirmed that the s. 38(a.1) rule prevails over s. 69(4), as well as s. 69(1)(b)(ii), so that where a corporation transfers shares of a public corporation for no consideration to its sole shareholder, which is a private foundation, s. 38(a.1) will deem there to be no gain to the corporation if the transfer qualifies as a gift. ...

3 January 2024- 11:15pm 9331-0688 Québec – Tax Court of Canada finds that three corporations wholly-owned by an individual could not make an ETA s. 156 election Email this Content Jorré J found that three corporations were ineligible to make the ETA s. 156(2) nil consideration election because they were not “closely related,” i.e., their mutual shareholder was an individual rather than a corporation. ...

4 February 2024- 10:43pm CRA rules on post-mortem pipeline Email this Content CRA ruled on a conventional post-mortem pipeline: following preliminary transactions to generate a capital loss for carryback to the terminal year pursuant to s. 164(6), the estate sold its shares of “Investco” (described as carrying on a “business” of investing in GICs and other portfolio investments) to a Newco for consideration consisting mostly of a note, with Newco amalgamating with Investco after at least one year, and the note repaid on a quarterly basis thereafter. ...