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This term referred inter alia to a transaction that “is not one that may reasonably be considered to have been undertaken or arranged primarily for a bona fide purpose other than for the purpose of obtaining the tax benefit.” ... To use the language of the provisions, the RVO is a transaction that may reasonably be considered to have been undertaken or arranged primarily for a bona fide purpose other than for the purpose of obtaining the tax benefit. ...

In the course of his extended dissenting reasons, Webb JA stated: Just as the scheme of the ETA does not contemplate that 100% of a particular property or service that is acquired can be considered to be used in both a commercial activity and a business of making exempt supplies, Parliament did not intend that 100% of a single payment that is made could be considered to be made in both the course of a commercial activity and in the making of exempt supplies. ...

However, when trade debts are not paid according to the creditor's normal payment terms but they are settled within 12 months of being incurred, bona fide arrangements are considered to have been made at the time the debt arose for purposes of s. 15(2.3). CRA has carried forward most or all of its positions regarding the s. 15(2.6) rule including regarding when there is series of loans or other transactions and repayments, for instance that: repayments are applied on a first-in, first-out basis (i.e., to the oldest loan first) when a shareholder has more than one loan outstanding at the time of repayment, unless the facts clearly indicate otherwise; repayments can be made by applying dividend, salary, or bonus payments against an outstanding loan; and a repayment may be considered to have been made as part of a series of loans or other transactions and repayments where the proceeds of a new loan are used to repay an existing shareholder loan. ...

Payment of dues will likely be considered necessary to maintain a professional status only where membership in the professional organization is mandatory in order to maintain professional status and the non-payment of the annual dues could adversely affect or cause the employee to lose their professional status. ... In such cases, provided that membership in the provincial organization is necessary to maintain the employee's professional status, the entire amount of the annual dues paid will be considered necessary to maintain that professional status. ...

The exclusion in the definition of exempt interest financing expense for borrowings that are used to acquire purpose-built residential rentals should be extended to: land that can reasonably be considered to be necessary for the use and enjoyment of such property, and outlays or expenses incurred by the borrower that are included in computing the cost to the borrower of the purpose-built rental or related land. ... As a result, it could not be considered to be an s. 17 CFA for purposes of the portion of the series preceding such merger. ...

30 October 2016- 11:30pm CRA indicates whether dividends paid on non-participating prefs engage s. 55(2) is a question of fact Email this Content Respecting the payment of a non-participating dividend to a holding company on preferred shares whose paid-up capital and ACB equals their redemption amount, CRA indicated that “the hypothetical capital gain that would have been realized on a FMV disposition of [the] preferred shares immediately before the dividend…would be nil,” so that the dividend would not be considered to come out of safe income on hand. ...

24 March 2017- 9:56am CRA notes that a s. 94(3) trust can cause a trust of which it is beneficiary to be subject to Part XII.2 tax Email this Content A non-resident trust, which is deemed to be resident for various purposes under s. 94(3)(a), is nonetheless considered to be a “non-resident person” for purposes of the application of Part XII.2 tax to a resident trust of which it is a beneficiary. ...

Scott JA considered this approach to be contrary to s. 261(2)(b). Neal Armstrong. ...

CRA considers that a trade union is “an association whose primary purpose is to collectively negotiate with an employer to further the working conditions of its members” and that “an association does not have to be certified trade union in order to be considered a trade union” including, in this case, an association where management automatically become members of the association when hired by the employer. ...

28 August 2017- 12:42am Radelet – Tax Court of Canada finds that the threat of a gross negligence penalty imposition was not “duress” vitiating a waiver Email this Content In addition to rejecting the (self-represented) taxpayer’s largely unsupported allegations that he had lacked mental capacity when he executed a waiver (extending the normal reassessment period so that CRA could await his submissions respecting what it considered to be an unreported capital gain of $445,551 and a questionable business loss of $400,000), Bocock J also rejected the taxpayer’s submission that the waiver had been executed under the “duress” of a threat of a gross negligence penalty- which was not untoward in the context of an unreported capital gain. ...