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Bundle Date Translated severed letter Summaries under Summary descriptor 2017-09-06 28 October 2016 External T.I. 2016-0654331E5 F- Transfer of rights to income Income Tax Act- Section 9- Nature of Income where rental lands purchased subject to obligation to pay the rents to vendor, rents did not have quality of income to purchaser under s. 9 Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Incurring of Expense where rental lands purchased subject to obligation to pay the rents to vendor, no income inclusion and deduction of the rents by the purchaser under ss. 9 and 18(1)(a) Income Tax Act- Section 56- Subsection 56(4) where rental lands purchased subject to obligation to pay the rents to NAL vendor, s. 56(4) trumps s. 9 to include rents in purchaser’s income Income Tax Act- Section 56- Subsection 56(2) s. 56(2) could apply to shareholder of purchaser of lands if vendor did not pay FMV consideration for retaining rights to rents 2014-08-20 7 July 2014 External T.I. 2014-0518561E5 F- Superficial loss Income Tax Act- Section 54- Superficial Loss shares of Holdco as identical property to shares of Opco/transferred corporation wound-up but not dissolved within 30 days Income Tax Act- Section 88- Subsection 88(1) transferred corporation wound-up but not dissolved within 30 days 27 June 2014 External T.I. 2013-0500701E5 F- Déductibilité de certaines dépenses Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Income-Producing Purpose distinction between principal and secondary reason for incurring expense 2014-08-13 27 June 2014 External T.I. 2013-0498191E5 F- Interaction entre 55(2) et l'impôt de partie IV Income Tax Act- Section 186- Subsection 186(1)- Paragraph 186(1)(b) Part IV tax on cross-redemptions takes into account the Part I tax (and RDTOH addition) generated by s. 55(2) application thereto Income Tax Act- Section 55- Subsection 55(2) s. 55(2) tax on cross-redemption deemed dividends between connected CCPCs gave rise to circular Part IV tax 2 July 2014 External T.I. 2014-0529731E5 F- Stop-loss Rules Income Tax Act- Section 40- Subsection 40(3.4) taxpayer able to designate sourcing of disposed-of shares/illustration of application of CRA formula 2014-07-30 9 July 2014 External T.I. 2014-0527591E5 F- Résidence principale Income Tax Act- Section 54- Principal Residence- Paragraph (a) housing unit rented to son and unrelated roommate potentially could qualify as principal residence ...

An inter vivos example is where Bob sells the shares of Opco (having a FMV of $6 million and nominal PUC and ACB) directly to his children, and receives a $6 million promissory note as consideration. ...

18 October 2017- 1:13am Plains Midstream – Tax Court of Canada finds that s. 16(1) operates symmetrically (no creditor interest – no debtor interest deduction) Email this Content To over-simplify somewhat, Amoco agreed to assume a $225M loan that was due in perhaps 43-years’ time and that was effectively non-interest-bearing (or more precisely, only bore interest to the extent of oil production from the Beaufort Sea) in consideration inter alia for the payment to it of $17.5 million by the debtor. ...

26 November 2017- 11:19pm CRA indicates that it will not extend its policy on set-off of unequal redemption notes beyond a butterfly reorg Email this Content As described in 2015-0601441R3, a partnership was wound-up under s. 98(5) by one partner (Sub2) transferring its partnership interest under s. 85(1) to the other partner (Sub2) for consideration including Sub1 Preferred Shares. ...

(This may have occurred because the transactions under consideration were completed before the rulings were ultimately given.) ...

For example, a taxpayer with a property with an adjusted cost base and fair market value of $20 and $120, respectively, contributes the property under s. 97(2) to a newly-formed LP in consideration for units with a FMV of $120. ...

Instead, he transferred the shares to a new holding company (P Pom) under s. 85(1) in consideration for high ($1M) basis Class G shares and low basis Class A shares, and redeemed the Class G shares. ...

The Province then breached terms of the building lease and, in the subsequent settlement agreement, the parties agreed that, in addition to making a cash payment, the Province owed $2.4 million to Armour and that Armour, in consideration for $2.4 million to be paid by way of set-off, would be granted an irrevocable option to acquire the Province’s freehold interest (with the ground lease being terminated). ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2013-05-15 28 March 2013 External T.I. 2012-0460481E5 F- Allocation pour usage d'un véhicule à moteur Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(b)- Subparagraph 6(1)(b)(x) fixed allowance of $4.60 for each trip under 10 kilometres deemed unreasonable 13 February 2013 External T.I. 2011-0430921E5 F- S. 261- Loss carry-back & loss carry-forward Income Tax Act- Section 261- Subsection 261(12) conversion to U.S. dollar and back again changed non-capital losses Income Tax Act- Section 261- Subsection 261(15) carryback of non-capital loss following revocation of functional currency election to functional currency year 28 March 2013 External T.I. 2012-0460031E5 F- Prime pour partager chambre à deux Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) allowance paid by 3rd-party customer to employees re double-occupancy rooms was taxable Income Tax Regulations- Regulation 200- Subsection 200(1) T4As to be issued by employer for allowance paid by 3rd-party customer to employees 2 April 2013 External T.I. 2013-0478221E5 F- CIAPH- acquisition pour une somme nominale Income Tax Act- Section 118.05- Subsection 118.05(3) purchase for nominal consideration still generates the credit 19 March 2013 External T.I. 2012-0444001E5 F- Dépenses d'adoption lors de démarches abandonnées Income Tax Act- Section 118.01- Subsection 118.01(1)- Eligible Adoption Expense expenses must be incurred in relation to successfully-adopted child 11 March 2013 External T.I. 2012-0469231E5 F- Deferred terminal loss Income Tax Act- Section 13- Subsection 13(21.2) notional properties fall in same class so that losses suspended until triggering events for all properties/ordering of dispositions to affiliated and unaffiliated transferees generally not relevant Income Tax Act- Section 13- Subsection 13(21.1)- Paragraph 13(21.1)(a) s. 13(21.1)(a) adjusts the proceeds as determined under s. 85 ...

On the butterfly proper, DC transfers Newco to TCo in consideration for preferred shares and the assumption of liabilities – except that in order to ensure that the transfer of cash (under the consolidated look-through approach) represented by the transfer of Newco is in the same proportion as the transfer of business assets, there also is a transfer of cash made as of the date of this butterfly distribution but that, in fact (and similarly to 2012-0459781R3 and 2014-0530961R3), is transferred a redacted number of days thereafter in order to accommodate a more accurate computation of the required amount. ...