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Profit- Commodities, and commodities futures and derivatives legatee generally acquires a deceased artist’s inventory on capital account 7 April 2005 Internal T.I. 2005-0110991I7 F- Frais de garde d'enfants Income Tax Act- Section 63- Subsection 63(2)- Paragraph 63(2)(b)- Element C- Subparagraph (i)- Clause (i)(B)- Subclause (i)(B)(I) “period of not less than 2 weeks” refers to 2 consecutive weeks 11 April 2005 External T.I. 2005-0112321E5 F- Price adjustment clause Income Tax Act- Section 51- Subsection 51(2) CRA may accept a price adjustment clause adjusting of share consideration on s. 51 exchange if genuine attempt to establish FMV and issue of intervening share cancellation is addressed General Concepts- Effective Date CRA may also accept a price adjustment clause for improving the attributes of the shares received on an exchange so as to equal the exchange price Income Tax Act- Section 15- Subsection 15(1) where FMV of pre shares received on estate-freeze s. 51 exchange was less than that of the exchanged common shares, CRA would apply s. 51(2), not s. 15(1) 31 March 2005 External T.I. 2004-0093651E5 F- Primes d'assurance-vie et d'assurance-invalidité Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e.2) guarantee respecting another aspect of a loan by a government fund does not preclude deductibility of premiums on life policy assigned as security to bank Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(b)- Capital Expenditure v. ...

A similar “later of” concept should be employed federally and, given that many taxpayers operate in Québec, consideration should be given to coordinating deadlines. ...

(f) applicable to transfer of shares for no consideration to new trust for same incapacitated minor beneficiary Income Tax Act- 101-110- Section 108- Subsection 108(1)- Trust- Paragraph (g) interests in inter vivos trust were vested indefeasibly in its minor beneficiary with special needs 2004-01-16 7 January 2004 Internal T.I. 2003-0038217 F- gain en capital / résidence principale Income Tax Act- Section 3- Paragraph 3(a)- Business Source/Reasonable Expectation of Profit rental of second floor of house to son at cost was not a business Identical to 2003-00382170 F 8 January 2004 External T.I. 2003-0040575 F- Associated Corporations Income Tax Act- Section 256- Subsection 256(1.2)- Paragraph 256(1.2)(c) rule in s. 256(1.2)(c) references de jure control, not de facto control/ Identical to 2003-00405750 F 7 January 2004 Internal T.I. 2003-0046717 F- MODIFICATION DE PBR INSCRIT SUR T664 Income Tax Act- Section 220- Subsection 220(3.2) correction to ACB shown on s. 110.6(19) election did not constitute an amendment to the election Identical to 2003-00467170 9 January 2004 Internal T.I. 2003-0031601I7 F- Air Miles:employés/employeurs Income Tax Act- Section 69- Subsection 69(4) s. 69(4) applicable where corporation acquires property with its Air Miles and distributes the property to a shareholder (but not in the case of an arm’s length employee) Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) business air miles assumed to be used before personal air miles 7 January 2004 Internal T.I. 2003-00382170 F- gain en capital / résidence principale Income Tax Act- Section 45- Subsection 45(1)- Paragraph 45(1)(c) no partial change of use of residence where rental operation was not a business, or the business was ancillary Identical to 2003-0038217 F 8 January 2004 External T.I. 2003-00405750 F- Associated Corporations Income Tax Act- Section 256- Subsection 256(6)- Paragraph 256(6)(a) cessation of lender’s right to shares on occurrence of reasonably-expected event must be expressly stated in loan terms Income Tax Act- Section 256- Subsection 256(1.4)- Paragraph 256(1.4)(a) lender’s right to acquire 99% of shares in event of insolvency engaged s. 256(1.4)(a) 7 January 2004 Internal T.I. 2003-00467170 F- MODIFICATION DE PBR INSCRIT SUR T664 Income Tax Act- 101-110- Section 110.6- Subsection 110.6(27) correction of ACB shown on s. 110.6(19) election not an election amendment that must comply with s. 110.6(27) Identical to 2003-0046717 F ...

Income Tax Act- Section 50- Subsection 50(1)- Paragraph 50(1)(b)- Subparagraph 50(1)(b)(iii) corporation not insolvent if affiliates intend to pay its creditors, and its shares have value if it has non-capital losses Income Tax Act- Section 69- Subsection 69(1)- Paragraph 69(1)(b) sale of Lossco with no assets but non-capital losses for nil consideration to another subsidiary generated a gain under s. 69(1)(b) General Concepts- Fair Market Value- Shares shares of corporation that had ceased business and had no assets but had non-capital losses had a significant value 8 December 2003 Internal T.I. 2003-0042537 F- CIEE & SRAS Also released under document number 2003-00425370. ...

When a corporation realizes the accrued gain, on a property that it had acquired on a rollover basis in consideration for preferred shares, on disposing of that property, that gain is now considered to contribute to the gain on those preferred shares, so that such gain is to be included in the safe income of the preferred shares. ...

Now that MPP was an empty shell, Madison and Vanac transferred respective portfolios of rental properties to MPP in consideration for the assumption of liabilities and for the issuance of a mixture of Class B voting shares and Class C non-voting shares (with the same attributes other than being generally non-voting) so that Madison and Vanac collectively held (and in equal proportions, after giving effect to some catch-up transactions to equalize those holdings) 46.6% of the voting rights and 92.8% of the equity of MPP. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2024-01-24 21 December 2023 External T.I. 2016-0654081E5 F- Transfer of life insurance 2020-0866651E5 F is similar 21 December 2023 External T.I. 2019-0822121E5 F- Transfer of life insurance policy from a trust to 2020-0866651E5 F is similar 21 December 2023 External T.I. 2020-0866651E5 F- Transfer of life insurance Income Tax Act- Section 148- Subsection 148(7) 2016-0654081E5 F and 2019-0822121E5 F are similar a trust distribution of a life insurance policy to a beneficiary treated as being made for FMV consideration equal to the part of the beneficiary’s capital or income interest that is satisfied 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 2, 2023-0978631C6 F- CELIAPP- Autoconstruction d'une habitation- FHSA- Self-construction Income Tax Act- Section 146.6- Subsection 146.6(1)- Qualifying Withdrawal- Paragraph (a) acquisition of home is when it becomes habitable Income Tax Act- Section 146.6- Subsection 146.6(1)- Qualifying Withdrawal- Paragraph (c) written agreement for construction before October 1 could be satisfied with agreements with trades by self-constructing individual 2002-05-10 9 May 2002 Internal T.I. 2002-0135307 F- Application du paragraphe 39(2) Income Tax Act- Section 90- Subsection 90(3) distribution of contributed surplus by Delaware subsidiary likely was a dividend Income Tax Act- Section 39- Subsection 39(2) distribution by Delaware subsidiary that did not result in s. 40 application thereby did not engage s. 39(2) Income Tax Act- Section 248- Subsection 248(1)- Dividend a dividend is any corporate distribution other than of PUC 2002-04-26 15 May 2002 External T.I. 2001-0107805 F- PLUSIEURS ENTREPRISES Income Tax Act- Section 98- Subsection 98(5) where the terminated partnership carried on more than one business, s. 98(5) requires the sole proprietor to carry on all of those businesses Statutory Interpretation- Interpretation Act- Subsection 33(2) reference to “the” business included all the businesses 14 May 2002 External T.I. 2001-0105925 F- TOTALITE DES ACTIFS DE L'ENTREPRISE General Concepts- Illegality in 1996, the transfer of inventories of a Quebec pharmaceutical business to a wholly-owned corporation would have been invalid Income Tax Act- 101-110- Section 110.6- Subsection 110.6(14)- Paragraph 110.6(14)(f)- Subparagraph 110.6(14)(f)(ii)- Clause 110.6(14)(f)(ii)(A) unclear whether pharmaceuticals inventory could be transferred to a corporation owned by a pharmacist 17 May 2002 External T.I. 2001-0107815 F- APPLICATION DE LA LOI Income Tax Act- Section 34.1- Subsection 34.1(8) s. 34.1(8) would apply if an old partnership is replaced by a new one, provided no tax avoidance motivation Income Tax Act- Section 96 s. 249.1(1) overrode the normal perspective that the partnership business was carried on by the partners both before and after a new partnership was formed 21 May 2002 External T.I. 2002-0133105 F- COUT DES ACTIONS Income Tax Act- Section 112- Subsection 112(5.2)- Variable B s. 47(1) does not apply to determine the loss on mark-to-market property shares for the purposes of B in s. 112(5.2) 21 May 2002 External T.I. 2001-0097215 F- DISPOSITION D'UN BIEN EN IMMOBILISATION Income Tax Act- Section 248- Subsection 248(1)- Disposition disposition of land when sold by municipality for unpaid property taxes ...

Among other considerations, he indicated: The Dow position that the Minister’s decision under s. 247(10) is part of an assessment, was “inconsistent with the understanding of a tax assessment as a ‘product’ and not a ‘process’” (para. 6). ...

Various considerations for structuring a market maker trust (i.e., a trust established by the private corporate employer, with itself as beneficiary, to effect purchases and sales of shares of employees other than specified employees so as to give them capital gains rather than deemed dividend treatment) are discussed. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2025-07-09 26 February 2025 Internal T.I. 2023-0985151I7 F- Remboursement de frais juridiques par un actionnaire à sa société / Reimbursement of legal fees by a shareholder Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Incurring of Expense contingent dividend prospect likely did not support a deduction for an obligation to reimburse legal fees Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Legal and other Professional Fees the vendor’s agreed reimbursement of the sold corporation’s legal costs of a failed suit in consideration for a dividend had the suit succeeded, likely was non-deductible Income Tax Act- Section 42- Subsection 42(1)- Paragraph 42(1)(b)- Subparagraph 42(1)(b)(ii) s. 42(1)(b)(ii) might apply to the vendor’s agreed reimbursement, post-sale, of the sold corporation’s legal costs of a failed suit 22 May 2024 External T.I. 2024-1016211E5 F- Mineral Resource Cert- XXXXXXXXXX Income Tax Act- Section 248- Subsection 248(1)- Mineral Resource- Paragraph (d)- Subparagraph (d)(i) NRC certification received 2000-06-09 11 May 2000 External T.I. 2000-0009605 F- Démolition d'un immeuble Income Tax Regulations- Regulation 1100- Subsection 1100(11) Reg.1100(11) does not limit a terminal loss Income Tax Act- Section 20- Subsection 20(16) rental property restriction rule does not apply to a terminal loss Income Tax Act- Section 13- Subsection 13(21.2) s. 13(21.2) does not apply to an individual nor to a corporation demolishing a building while retaining the land for more than 30 days Income Tax Act- Section 54- Superficial Loss no superficial loss where demolition of building Income Tax Act- Section 40- Subsection 40(3.3) no suspended loss where demolition of building 15 May 2000 External T.I. 2000-0001995 F- CONGE SANS SOLDE-REGIME DISTINCT Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(f) payment of premiums by employee during unpaid leave did not create a separate plan, so that any benefits received would still be taxable 11 May 2000 Internal T.I. 2000-0008270 F- Perte finale disposition bâtiment Income Tax Act- Section 13- Subsection 13(21.1)- Paragraph 13(21.1)(b) s. 13(21.1)(b) would apply to reduce terminal loss even if the land was disposed of at a loss in a previous year 24 May 2000 Internal T.I. 2000-0017677 F- PENSION ALIMENTAIRE Income Tax Act- Section 56.1- Subsection 56.1(4)- Support Amount payments made pursuant to a separation agreement in order to maintain a financial balance between them rather than for maintenance, were not support amounts 17 May 2000 External T.I. 1999-0011695 F- Revenu protégé- options et dividendes follow-up in 2000-0040405 F Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) safe income of Pubco allocated to option granted to a minority shareholder to acquire its shares, but reduced by Pubco dividends 17 March 2000 APFF Roundtable Q. 11, 2000-0008260 F- DEDUCTION POUR PLACEMENTS Income Tax Act- Section 181.2- Subsection 181.2(4)- Paragraph 181.2(4)(b) balance of sale, although a debt, is not a “loan or advance”/ prepaid expenses are “advances” ...