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CRA responded that even though the property is purchased under a business expansion, this will not, in itself, prevent it from being considered a replacement property; and that there is no requirement that the replacement property be acquired after the former property is disposed of – so that the acquisition of the new property in advance of the disposition of the former property would not prevent it from being a replacement property. ...

11 October 2019 APFF Roundtable Q. 6, 2019-0812651C6 F- CDA and wind-up of a subsidiary-- summary under Subsection 88(1) Summary Under Tax Topics- Income Tax Act- Section 88- Subsection 88(1) IT-126R2 applied re tiiming of addition of the wound-up subsidiary’s CDA In IT-126R2, the CRA states that it considers that where the formal dissolution of a corporation is not complete but there is substantial evidence that the corporation will be dissolved within a short period of time, for the purpose of subsections 88(1) and (2) the corporation is considered to have been wound up. ...

8 July 2020 CALU Roundtable Q. 5, 2020-0842191C6- Jointly owned policies- 70(5.3)-- summary under Other Summary Under Tax Topics- General Concepts- Fair Market Value- Other valuation of co-owned whole life policy In the context of valuing whole life policy co- owned by Opco and its individual shareholder on the death of such shareholder, CRA stated: The terms and conditions of the shared ownership arrangement, the specific life insurance contract and all other related agreements which may form part of the particular arrangement and the particular facts at the given time would have to be considered in the determination of the FMV of Opco’s interest in the life insurance policy. … The CRA does not have its own method for computing the FMV; this computation is based upon the facts known on the valuation date, to which the principles and standards of the Canadian Institute of Chartered Business Valuators are applied. ...

CRA applied this test to find that the “revenue reported by the entity under the percentage of completion method would generally be considered ‘qualifying revenue’,” whereas mark-to-market valuation adjustments made by to the carrying value of investments by investment and brokerage firms would not give rise to an “inflow of cash, receivables or other consideration” under the above test, so that such (unrealized) gains or /losses would not affect qualifying revenue. ...

After noting that under a joint tenancy, “the joint tenants have concurrent ownership and possession of the same property,” CRA stated: [W]here two or more joint owners of a share of a corporation are considered one shareholder under relevant corporate law or are entitled to jointly receive any dividend paid on the share by the corporation, the joint owners of the share will generally be counted as one shareholder for purposes of paragraph 130.1(6)(d) …. ...

For the purposes of the Act, in the absence of a provision similar to the definition in subsection 18(3), a building or other structure affixed to land would generally be considered as part of the land. ...

26 November 2020 STEP Roundtable Q. 1, 2020-0839931C6- Executor's Year of a GRE-- summary under Subsection 104(13.3) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(13.3) scope of application of s. 104(13.3) In the course of a general discussion of when a graduated rate estate might be subject to tax on income that was not considered to be payable in the year in the context of its executor's year policy, CRA stated: The Department of Finance’s Explanatory Notes indicate that subsection 104(13.3) ensures that subsection 104(13.1) or (13.2) designations “are made only to the extent that the trust’s tax balances (e.g., loss carry-forwards) are applied, under the rules that apply in Division C, against all of the trust’s income for the year determined after the trust claims the maximum amount deductible by it under subsection 104(6).” ...

CRA ruled that “[t]he negative repo spread … will not be considered to be interest or an amount paid or credited as, on account or in lieu of, or in satisfaction of interest for the purposes of paragraph 212(1)(b).” ...

IV tax exemption did not apply to the dividend received by B Co since the s. 104(19) designation is considered to be effective only at the end of the trust’s taxation year – at which time they were no longer connected. ...

Such amounts “could be considered a qualifying amount.” ...