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The factors to be considered in making this determination are set out in … IT-206R[, para. 3]. … [T] he question of what is the principal business of a taxpayer that is a corporation within the meaning of subsection 1100(12) I.T.R. is a question of fact …. ...

Regarding when the amount of the credit reduced the ACB of the eligible investments pursuant to s. 53(2)(k), CRA stated: According to the CRA's longstanding position, a tax credit or reduction in the calculation of tax- which is not applied to reduce instalments payable by the taxpayer … is considered to have been received, where all the conditions for obtaining it have been satisfied, at the earliest of the following times: when it reduces the tax payable for a taxation year; at the time it is paid if it allows for or increases a tax refund. ...

., $350,000, could be considered payable to her in that year, subject to s. 104(24). ...

V(4) means three calendar months or days totaling an equivalent of three months, the Directorate distinguished the findings in Smith (96 DTC 3246) and McCombie (2000 DTC 3636) as to the meaning of “month,” and stated: Considering that the testing period of three months is not required to be consecutive, the term “three months” should be considered to refer to the aggregate time measured by the number of months. ...

CRA ruled that these transactions will not be considered in themselves to result in a disposition or increase in interest described in any of ss. 55(3)(a)(i) to (v) and, in particular, that the share issuance by Holdco to the Opco shareholders will not be described in s. 55(3)(a)(ii) by virtue of s. 55(3.01)(g). ...

10 October 2024 APFF Roundtable Q. 18, 2024-1027351C6 F- Arrêt Foix et ventes hybrides-- summary under Subsection 84(2) Summary Under Tax Topics- Income Tax Act- Section 84- Subsection 84(2) Foix established that s. 84(2) should be construed broadly When asked to comment on Foix, which found that s. 84(2) applied to a particular hybrid sale transaction, CRA stated (footnotes omitted): According to the broad interpretation of subsection 84(2) adopted by the Court, “transactions leading to an alleged distribution or appropriation of funds or property are to be considered as a whole in a way that is temporally flexible”. ...

Before so concluding, CRA referred to the Ensite test of whether property was used or held by a corporation in the course of carrying on a business, under which the “property had to be employed and risked in the business to fulfil a requirement which had to be met in order to do business” and that “risk means more than a remote risk” so that “[i]f the withdrawal of the property would have a decidedly destabilizing effect on the corporate operations, the property would generally be considered to be used in the course of carrying on a business.” ...

The TSO considered that the progress method was not available because the taxpayer was engaged in manufacturing and installing kitchen equipment, rather than in the construction of a building, road, dam, bridge or similar structure, as required in IT-92R2, para. 1. ...

Although the Directorate indicated that one possible interpretation would require the associated CCPCs to convert each component of their TCEC computation (which the Directorate noted “would be administratively burdensome, especially when the associated corporations could not rely on subsection 261(7)”), the Directorate concluded: The day the TCEC of the associated corporation is considered to “arise” for the purposes of determining the conversion rate according to paragraph 261(5)(c) is the last day of the taxation year of the associated corporation for which it is computed because that is the day when the amount of the TCEC is determined pursuant to section 181.2 (hence when an amount relevant to computing the Taxpayer’s Canadian tax results is created). ...

In this regard, CRA ruled that, for the purposes of s. 55(3.1)(b)(i)(A)(II), in determining whether 10% or more of the FMV of the Foreign Spinco common shares is derived from shares of TC or DC “any indebtedness of Foreign Spinco that is not a secured debt and that is not a debt related to a particular property will be considered to reduce the FMV of each property of Foreign Spinco pro rata in proportion to the relative FMV of all property of Foreign Spinco.” ...