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Could ss. 17.1 and 247 both be applied to these facts without being considered as be in conflict, notwithstanding that the arm’s length rate determined in the context of s. 247(2) might be higher, lower or equivalent to the Reg. 4301(b.1) rate? ...

7 March 2022 External T.I. 2021-0895571E5- Clarification of Comments in 2020-086483-- summary under Paragraph (k) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement- Paragraph (k) 3 years may start counting from before the grant year/ unfavourable counting where employer has non-calendar year 2020-0864831I7 found that full-value restricted share units (“RSUs”) granted early in the calendar taxation year of the employer (the “Grant Year”) were considered to be in respect of services in the previous year, so that such award came within the salary deferral arrangement (SDA) definition, and would not be excluded under para. ...

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. ...