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13 July 2017- 1:04am CRA considered that exploring a placer jade deposit did not qualify as CEE Email this Content Para. ... The Minister of Natural Resources advised CRA that nephrite (a type of jade) to be extracted from the in-situ deposits on the subject property was an industrial mineral contained in non-bedded deposits – but excluding placer nephrite deposits, which were considered to fail the quoted test. ... CRA itself considered that the placer nephrite deposit also did not qualify as a “base or precious metal deposit.” ...

2 June 2022- 10:32pm CRA indicates that a spouse who was a registered co-owner of a property could be considered its beneficial owner even though she did not contribute to its purchase Email this Content S. 45(2) permits a taxpayer to elect to avoid a deemed disposition from a conversion of “property of the taxpayer” from personal to income-producing use. After noting that under s. 45, as in the rest of the Act, the quoted reference would be to the beneficial rather than legal owner, CRA went on to note that a wife who legally was the co-owner of the home in question (which had been converted to rental use) could be considered to be a ½ beneficial owner of the house for these purposes even though her husband provided all the purchase funds and had reported all the rental income. ... It concluded: [I]f both spouses are considered to have beneficial ownership … they would both be required to file the election …. ...

31 May 2017- 11:13pm MP Western Properties – Tax Court of Canada states that the Crown must produce all documents “considered by officials involved in or consulted during” a GAAR-related audit Email this Content Predecessors of the taxpayers had been acquired for their losses in transactions where less than 50% of their voting shares, but more than 90% of their non-voting participating shares, had been acquired. ... Miller J stated: … It is my view that in a GAAR appeal, draft documents prepared in the context of a taxpayer’s audit or considered by officials involved in or consulted during the audit and assessment of the taxpayer should be disclosed. ...

7 November 2019- 11:57pm CRA considered, and declined, extending its wash-trading policy to supplies made to municipalities Email this Content In assessing a “wash transaction,” CRA will automatically waive a significant portion of the interest that was assessable (or all of it, in the context of a voluntary disclosure). However, Memorandum 16-3-1 states that municipalities, which are eligible for 100% GST rebates, are not considered to have received a wash transaction. ...

17 July 2017- 12:54am CRA considered that s. 55(2) did not apply to dividends paid only for asset protection and QSBC-status purposes, and that safe income was allocated between 2 classes of participating shares pro rata to their dividend entitlements Email this Content Two unrelated individuals hold a portion of their equal investments in Opco in the form of equal direct common shareholdings and the balance through an equally owned Holdco, which holds Class X shares of Opco that are entitled to receive a proportion of the earnings of Opco and are redeemable for an amount equal to that proportionate amount of such undistributed earnings plus their nominal issuance price. CRA was guardedly amenable to the proposition that dividends paid on the Class X shares could be considered to be paid only for purposes of asset protection and eliminating excess liquidity that could prejudice this status of the common shares as qualified small business corporation shares. ...

19 July 2020- 10:44pm CRA considered that promotional services provided by a public sector body to a sponsor were not subject to GST/HST given the substantial advertising was not the main motivation [corrected link] Email this Content ETA s. 135 deem a supply by a public sector body (PSB) of a service, or a licence of copyright, a trade-mark, trade-name or other similar property to a “sponsor” for exclusive use by the sponsor in publicizing the sponsor’s business, to not be a supply – except that this rule is stated not to apply where the consideration for this supply by the PSB to the sponsor is “primarily” for radio, TV, newspaper, or magazine advertising. ... In explaining why the exclusion for TV advertising did not apply, CRA noted that in a previous file, it had concluded that even though “in monetary terms, the advertising represented a substantial part of the sponsorship, we considered that the reason a sponsor would want to sign an agreement and pay the funds was for the recognition of being a partner in the … events … and being able to use the logos associated with them.” ...

13 February 2017- 11:53pm CRA has an internal list of facilities which, on previous review, have been considered to be nursing homes Email this Content CRA acknowledged that it has a list of facilities that have already been reviewed to determine whether they qualify as nursing homes. ...

25 October 2018- 12:03am CRA notes factors considered in deciding to backdate an HBP withdrawal Email this Content S. 146.01(2)(d) provides that for purposes of the home buyer plan rules in s. 146.01, a withdrawal from an RRSP made by an individual in January of a year “or at such later time as is acceptable to the Minister” is deemed to have been made at the end of the preceding year. ...

27 December 2022- 8:57pm Vohra – Tax Court of Canada finds that support payments could be considered to be made pursuant to terms of a written separation agreement which had expired Email this Content When the taxpayer and his wife separated, they entered into separation agreement which provided for the taxpayer making support payments until December 2014. ...

16 October 2023- 9:49pm Joint Committee suggests a list of examples of transactions which should not be considered to be a GAAR abuse Email this Content The Joint Committee notes that the Explanatory Notes examples regarding the proposed GAAR amendments do not reflect that many tax planning strategies utilize a series of transactions which navigates around inappropriate tax consequences in ways that likely were not specifically contemplated by Parliament. ...