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Before so concluding, the Directorate noted that, in dealing with the similar language in s. 56.4(3)(c)(ii), it had considered that s. 56.4(3)(c)(ii) … would allow an election with respect to the undertaking not to solicit the clients of the corporation that is sold, but it would not allow such an election with respect to the value of an undertaking not to solicit the employees to change employment... and that the fact that a non-competition agreement may include both a non-competition and a confidentiality clause would not in and of itself disqualify the entire non-competition agreement for the purposes of the exceptions in subsection 56.4(3) or 56.4(7). ...

27 October 2017 Internal T.I. 2017-0694231I7- Subsection 247(2), surplus, and FAPI-- summary under Subsection 5907(2) Summary Under Tax Topics- Income Tax Regulations- Regulation 5907- Subsection 5907(2) effect on surplus balances of foreign transfer-pricing adjustment might be reversed under Reg. 5907(2) The Directorate considered that where there was a s. 247(2) transfer pricing adjustment to increase Canco’s income as a result of having undercharged for goods or services provided to a non-resident subsidiary (CFA), s. 247(2) could not also be applied to reduce the exempt surplus or foreign accrual property income of CFA in respect of Canco. ...

CRA considered Foreign Sub to be the “taxpayer” and effectively treated Finco as the deemed corporation resident in Canada, so that Finco was liable under s. 215(1) for failure to “withhold” and remit Part XIII tax on the imputed benefit. ...

CRA considered Foreign Sub to be the “taxpayer” and effectively treated Finco as the deemed corporation resident in Canada, stating: As the “shareholder” in subsection 15(1), Foreign Sub would be the taxpayer who is deemed to have received the dividend under paragraph 214(3)(a), and it is therefore Foreign Sub who is liable for the withholding tax imposed under subsection 212(2). ...

CRA responded: [W]here a payor has entered into a legal agreement with a non-resident for the right to use copyrighted property in connection with the manufacture, sale and distribution of any artistic work in Canada, a royalty or similar payment for that right would be considered to be “on or in respect of a copyright in respect of the production or reproduction of any...artistic work” in subparagraph 212(1)(d)(vi) even if the payor does not manufacture the artistic works, which it distributes under that legal agreement. ...

Rulings Include that the repayments on the Forco2-FinanceCo1 Note will not be considered repayments made as part of a series of loans or other transactions and repayments for the purpose of s. 90(8)(a) or 90(14). ...

Accordingly, if expenses are disproportionately allocated when calculating the income described in subparagraph (a)(i) of the definition of SCI in subsection 125(7) for the year …[o]nly the expenses that are reasonable to consider to be attributable to the activities generating the income described in subparagraph (a)(i) of the definition of SCI should be considered. ...

6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 1, 2017-0705221C6 F- Property transfers- common law partners in Québec-- summary under Paragraph 73(1.01)(b) Summary Under Tax Topics- Income Tax Act- Section 73- Subsection 73(1.01)- Paragraph 73(1.01)(b) rollover under common-law partners' separation agreement irrespective of whether technically they have separation rights to settle Respecting the rollover under ss. 73(1.01)(b), 146(16) and 146.3(14) provide to a common-law partner or a partner plan pursuant to a written separation agreement governing the division of the common-law partners’ assets in settlement of their rights arising on the breakdown of their relationship, CRA considered that, although there is no right in Quebec arising out of a common-law partnership (as per Éric v. ...

In finding that no such deduction was permitted, CRA stated: Generally, a plan will be considered to be a pension plan where contributions have been made to the plan by or on behalf of an employer or former employer of an employee in consideration for services rendered by the employee and the contributions are used to provide an annuity or other periodic payment on or after the employee's retirement. … [A] plan will not be a pension plan where the only payment provided for under the terms of the plan is a single lump sum payable on retirement or loss of employment. … [A] plan that is excluded from being a salary deferral arrangement (“SDA”) by virtue of the special exception for professional athletes in paragraph (j) of the SDA definition in subsection 248(1) [also] will not be a pension plan, regardless of the form of benefits provided. ...

Thus, the Partnership would be considered to be the taxpayer for the purposes of paragraph 13(38)(d). ...