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The determination of whether these provisions could apply on the transfer of property from Trust to NewTrust would require consideration of all the relevant facts and circumstances, including the terms and conditions that apply in respect of Trust and NewTrust. ... Ata 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. ...

Consequently, subject to a consideration of the provisions of the will as a whole and the applicable law, it is possible that the conditions of subsection 104(18) could be satisfied in respect of the child or children of the deceased who are beneficiaries of the estate and who have not attained 21 years of age at the end of a particular taxation year. ... Official Response 7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 7, 2021-0899681C6 F- Stock option, Short sale and Identical property Q.8 Pipeline where sale to existing corporation rather than Newco In order to implement pipeline planning, the estate of an individual ("Estate") generally incorporates a new corporation ("Newco") to which it sells shares of a private corporation ("Target"), with or without a tax rollover, in consideration for shares of Newco (the "Shares") or a note issued by Newco ("Note"). ...

Turning to the question, in our view, a power of attorney under which a designated attorney exercises the voting rights of a controlling shareholder of a corporation as a consequence of the incapacity of that shareholder who continues to be the legal and beneficial owner of those shares would not constitute an external document that has to be taken into consideration in determining the de jure control of the corporation. ... New subsection 245(4.1) of the general anti-avoidance rule (“GAAR”) provides that if an avoidance transaction is significantly lacking in economic substance it is an important consideration that tends to indicate that the transaction results in a misuse or abuse under subsection 245(4). ...

In our view, a power of attorney under which a designated attorney exercises the voting rights of the controlling shareholder of a corporation as a consequence of the incapacity of the shareholder (who continues to be the legal and beneficial owner of the shares), would not constitute an external document that is to be taken into consideration in determining de jure control of the corporation. ... New subsection 245(4.1) of the general anti-avoidance rule (“GAAR”) provides that if an avoidance transaction is significantly lacking in economic substance it is an important consideration that tends to indicate that the transaction results in a misuse or abuse under subsection 245(4). ...

CRA Panelists: Stéphane Prud'Homme, Director, Reorganizations Division Daryl Boychuk: Manager, Income Tax Rulings Directorate Q.1- Deferred safe Income and preferred shares The Canada Revenue Agency (CRA) has considered the allocation of safe income to preferred shares where a shareholder acquires preferred shares in a corporation as consideration for the transfer of a property (other than shares) on a tax-deferred basis to the corporation. ... Preliminary Response Prud'homme: As part of the Safe Income Paper, the CRA stated that, where a shareholder acquires preferred shares as consideration for the transfer of property on a tax deferred basis, the accrued gain on the property at the time of the transfer that is subsequently realized by the corporation would be viewed as contributing to the gain on the preferred shares, and accordingly would be included in the safe income of the preferred shares. ...

In light of the above, any changes to the Income Tax Act in this regard would be based on tax policy considerations. ... C, for FMV consideration. The three individuals were not related persons. 2010-0373131C6 confirmed the CRA view now contained in Folio S1-F5-C1 that there is a presumption that the shareholders of a private corporation having two or three unrelated shareholders will act together to exercise control of the corporation. ... D for FMV consideration. 2010-0373131C6 confirmed the CRA general position now contained in Folio S1-F5-C1 that in a situation where a private corporation has three unrelated shareholders, none of whom individually has control, the CRA presumes that the three shareholders act in concert, thereby forming a group that controls the corporation. ...

Authorized Representative (FIRP & ABSB) The Election or Revocation of an Election for Closely Related Corporations and/or Canadian Partnerships to Treat Certain Taxable Supplies as Having Been Made for Nil Consideration for GST/HST Purposes (RC4616) [i.e. the 156 election] is required to be signed by a person that is “authorized to file on behalf of the specified members…” The Canada Revenue Agency’s list of services for representatives of businesses (https://www.canada.ca/en/revenue-agency/services/e-services/represent-aclient/listservices-representatives-businesses.html) provides that Level 2, Level 3 and Legal Representatives access is required to be eligible to file an election. ... New GST/HST Memorandum 14.7, Closely Related Corporations, GST/HST Memorandum 14.5, Election to Deem Supplies to be Made for Nil Consideration, and GST/HST Memorandum 14.8, Closely Related Canadian Partnerships and Corporations for Purposes of Section 156 were also released in June 2023. ... Waive the annual requirement to file an application to use a pre-approved method where there are no changes from a method used in the prior year: Alternatively, consideration could be given to authorizing the use of a pre-approved method for three to five years with the condition that the reapplication for use of a pre-approved method for a particular fiscal year would arise where there is a material change in the business structure that would impact the ITC methodology. ...

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. ...

Situation (b) Moreno: The same considerations as above would be relevant. ...