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He went on to indicate (at para. 49) that in any event, the daughter could be considered to be “subject to tax” (or “liable for tax” to use his preferred translation, and also essentially the phrase considered in Crown Forest): The income tax legislation … applies to all Canadian residents … because they may, in one year or another, earn business income in Quebec…. ...

CRA considered that there was a requirement to recognize deemed interest income on the notes under Reg. 7000(2)(d) given that, in contrast to the usual equity-linked notes that were available to investors at the time, these notes had “internal puts,” i.e., SLT had the right to terminate the notes at any time, on 367 days’ notice, at the market value of the reference assets. On this basis, it considered that the “the maximum amount of interest thereon that could be payable thereunder in respect of that year” was the difference between the maximum value of the reference assets at the end of the year and the maximum value in the prior years, and assessed accordingly, to treat such annual increase as foreign accrual property income of SLT under element A of the s. 95(1) FAPI definition. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2010-02-26 29 January 2010 Internal T.I. 2009-0339541I7 F- Inclusion au revenu et provision Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(a) advance fees for futures goods-handling services included in income under s. 12(1)(a) rather than s. 9 Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(m) reserve available for future goods handling services to be performed Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(a)- Incurring of Expense no deduction from prepaid fees of estimated cost of performance 16 February 2010 External T.I. 2010-0354801E5 F- CIRD- construction d'un logement General Concepts- Ownership individual is considered to become owner of home in construction when it becomes habitable Income Tax Act- Section 118.04- Subsection 118.04(1)- Qualifying Renovation credit dependent on timing of renovation expenditures and when moved into home 18 March 2008 External T.I. 2008-0265861E5 F- Programme d'aide financière d'urgence ("PAFU") Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(u) s. 56(1)(u) applied to emergency assistance not based on an income test Statutory Interpretation- French and English Version English version of s. 56(1)(u), as the broader of the two, was to be preferred Income Tax Act- Section 153- Subsection 153(1) no source deductions from social assistance payments 2 February 2010 Internal T.I. 2009-0345741I7 F- Programme d'aide financière d'urgence ("PAFU") Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(u) social assistance paid without a means, needs or income test was not income to recipient Income Tax Regulations- Regulation 233- Subsection 233(2)- Paragraph 233(2)(g) lump sum emergency assistance under Quebec program would not be required to be included in income because no information slip required 16 February 2010 External T.I. 2009-0322751E5 F- Traitement fiscal des indemnités reçues Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(c) prejudgment interest included in class action award was tax free 2010-02-19 9 February 2010 External T.I. 2009-0316561E5 F- Biens en immobilisations-RS&DE Income Tax Act- Section 127- Subsection 127(9)- First Term Shared-Use Equipment expected use throughout expected useful life is considered Income Tax Regulations- Regulation 2900- Subsection 2900(11) requirement during establishment phase to be used primarily during useful life for SR&ED ...

The first part continues to be considered a pension and remains exempt from taxation in Canada (if an election had been filed). The second part ceases to be considered a pension and becomes subject to Canadian taxation. ...

4 January 2021- 10:46pm Non-resident realty investors may be subject to Quebec rules imposing double taxation Email this Content There are particular potential pitfalls that can arise for a non-resident investing in Quebec rental properties or other investments: The Quebec Taxation Act departs from the federal rules by deeming Quebec rental properties to be a Quebec establishment, with the result that the rental income therefrom is subject to Quebec income tax, whereas there is no federal abatement for provincial tax if the income is considered to be income from property – hence, there is double taxation. ... Non-resident inter vivos trusts that own immovable property in Quebec and earn rental income therefrom are considered to have a “specified immovable property.” ...

She considered the wording of s. 161(7)(b) to be unambiguous, but was fortified in her conclusion by her view that the scheme of the Act is to establish a “self-assessing income tax system under … which the onus is put on the taxpayer,” stating in this regard that: The Act contemplates retroactive/retrospective liability following reassessment in a self-assessing system. ... Thus, she considered that the Bank owed tax from the moment it filed its 2006 return on a basis that failed to recognize the income later subject to the transfer-pricing adjustment, and the subsequent non-capital loss could not be recognized until, many years later, that need for its application was identified. ...

Pizzitelli J considered this discount to be eminently fair to the taxpayers given his finding that, on the valuation date (April 1, 2006), the prospects for a successful IPO were high (and of the founders requiring the taxpayers to sell their shares back at the formula price, quite fanciful). ... In finding that this was justified based on carelessness or neglect, Pizzitelli J stated: [T]he Appellants did not seek an independent valuation and cannot be said to have thoughtfully, deliberately and carefully considered whether the proposed IPO would affect the share price. ...

The exchanges by the Loral shareholders for shares of Telesat Corporation or units of Telesat Partnership were considered to be non-recognition transactions under Code s. 351 or s. 721. ... Telesat Corporation believes that such interpretation is consistent with the rationale expressed by the CRA for its published administrative position in this regard, so that there would be no net income inclusion to the partnership, and it was considered appropriate that there also should be no net inclusion to Telesat Corporation. ...

It is arguable that the acquisition of the … MRPS is not considered part of the ordinary course of business carried on by [Canco 2], but rather the acquisition may be considered an isolated and special transaction that is not part of a course of conduct that involves repeated dealings of a similar nature. … [I]t is also important to consider whether the arrangement in the current case, at its core, more closely resembles a debt financing arrangement or a capital investment. ...

CRA considered that the above agreement had the effect of constituting the Rémillard Brothers as de facto trustees of the trust, contrary to the trust deed and Art. 1275, so that the determinations to make the distributions pursuant to such unlawful agreement were a nullity, with the result that the distribution amounts were not “payable” as required by s. 104(6). Smith J rejected the trust’s argument that the distributions should be considered to have “became payable” for purposes of s. 104(6) solely because they were paid to the beneficiary and irrespective of whether they were unlawful. ...