Search - considered

After noting that, under the Quebec Civil Code, a landlord may not make non-emergency improvements or major repairs requiring the temporary evacuation of the housing unit without offering the tenant compensation equal to the reasonable expenses incurred by the tenant as a result of the evacuation, CRA stated, regarding whether the compensation payment would be a capital expenditure: [I]f the purpose of the work was to improve the housing unit for the purpose of the resale of the duplex, that purpose in itself could be considered a dominant factor that would lead to the conclusion that the payment of the compensation was a capital expenditure. However, in a context where the landlord pays compensation to his tenant because of his obligations under the Civil Code of Québec, this element could then be considered dominant and the compensation could be considered a current expense. ...

6 November 2023 External T.I. 2022-0954001E5- Meaning of “Express Consent” in Regulations 209(3)-- summary under Subsection 209(4) Summary Under Tax Topics- Income Tax Regulations- Regulation 209- Subsection 209(4) consent given over the phone or by pressing options on a touchtone phone does not constitute “express consent” to electronic information slips Would there be considered to be express consent as per Regs. 209(3) and (4), where the taxpayer provides consent to the issuer over the phone or by selecting the electronic receipt of documents option using a touch-tone phone? ... " CRA then concluded that, in the first scenario, consent over the phone would not be in writing or in electronic format and that an audio recording of verbal consent provided over the phone would not be so considered, as the recording would not be in an electronically readable form. Regarding the second scenario, CRA considered that the consent provided by selecting the electronic receipt of documents using a touch-tone phone would not so qualify, since the "act of selecting an option using a touch-tone phone does not provide clear and explicit consent in writing" and, furthermore, unless the consent provided in this scenario could be retained in an electronically readable format, it would not constitute consent in an electronic format. ...

Substantial amounts of cash and deposits in excess of those required for use of the business and that are retained on a permanent basis, will not be considered to be funds used in the business. The only receivables considered to be assets used in an active business are trade accounts receivable that arise from sales in the course of the corporation's active business. ...

23 April 1992 Memorandum 921211 (September 1992 Access Letter, p. 39)-- summary under Dividend Rental Agreement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Dividend Rental Agreement A situation in which a securities dealer would borrow a share on which either a cash dividend, or a stock dividend valued at a 5% discount from the market price, was payable, elect to receive the stock dividend, sell the stock dividend upon receipt and pay a dividend compensation amount and a portion of the profit on the transaction to the lender of the share, would be considered a securities lending arrangement, and might also be considered a dividend rental arrangement. ...

23 April 1992 Memorandum 921211 (September 1992 Access Letter, p. 39)-- summary under Securities Lending Arrangement Summary Under Tax Topics- Income Tax Act- Section 260- Subsection 260(1)- Securities Lending Arrangement A situation in which a securities dealer would borrow a share on which either a cash dividend, or a stock dividend valued at a 5% discount from the market price, was payable, elect to receive the stock dividend, sell the stock dividend upon receipt and pay a dividend compensation amount and a portion of the profit on the transaction to the lender of the share, would be considered a securities lending arrangement, and might also be considered a dividend rental arrangement. ...

(Tax Window, No. 4, p. 12, ¶1282)-- summary under Subsection 55(2) Summary Under Tax Topics- Income Tax Act- Section 55- Subsection 55(2) Where shares of Opco are redeemed by Holdco giving rise to a deemed dividend of $2.2 million at a time that the safe income of Opco is $1.8 million, Holdco designates $1.8 million as a separate taxable dividend under s. 55(5)(f) and Opco receives a dividend refund of tax of $100,000, the $400,000 of income earned by Opco on which it paid refundable tax will be considered to be part of the safe income of Opco. Consequently, s. 55(2) will apply to the dividend of $400,000 because it would not be considered to have been paid out of safe income. ...

(Tax Window, No. 28, p. 14, ¶2415)-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation In order for land to be considered to be used in an active business, it generally must be subjacent to any building or structure affixed to the land or immediately contiguous land used as a parking area, driveway, yard, garden or similar land that is necessary for the use of the building. However, where zoning restrictions require that a larger parcel of land be acquired, the entire parcel could be considered to be an active business asset. ...

15 February 2012 External T.I. 2011-0426531E5- Exchange of Gold Bullion for ETR-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition exchange of gold certificate for gold likely not a disposition Based on the Exchange Traded Receipts of the Royal Canadian Mint representing undivided legal and beneficial interests in gold bullion and on the statement in IT-387R2, para. 4 that an exchange of gold certificates for gold bullion is not considered to be a disposition, the exchange of such ETRs for gold bullion might not be considered to be a disposition. ...

The parenthetical exception in s. 88(1.70 would be considered to apply as Acquisitionco would be considered to have acquired control of Pubco as a result of transactions with persons with whom it dealt at arm's length. ...

21 May 2009 IFA Roundtable Q. 1, 2009-0321451C6- Meaning of beneficial owner in Article 10, 11 & 12-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 In the Prévost Car case, "the Court implied that where an intermediary acts as a mere conduit or funnel in respect of an item of income, the intermediary would not have sufficient economic entitlement to the income to be considered the 'beneficial owner'. The CRA will examine future back-to-back dividend, interest and royalty cases that have encounters with a view to whether an intermediary could, on the facts, be considered a mere conduit or funnel". ...