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8 May 2019- 11:44pm CRA confirms that there is no rollover for tax deferred cooperative shares on a triangular amalgamation Email this Content Where s. 87(2)(s) applies to an amalgamation of agricultural cooperative corporations, then shareholders will not be considered to have realized income as a result of the disposition of their “old” tax deferred cooperative shares for equivalent new shares, there will be no withholding required under s. 131.1(7) and their new shares will be treated as tax deferred cooperative shares until such time as they are disposed of. ...

The comfort letter provides an exception from the tracking interest rules if it cannot reasonably be considered that one of the purposes for the creation or issuance of a tracking interest in an umbrella corporation or for the acquisition of the interest by a taxpayer is to avoid the corporation being a CFA for the year. ...

2 July 2019- 11:59pm CRA finds that ss. 6(1)(a) and 148(7) applied simultaneously to the transfer of a life insurance policy by an employer to an arm’s length employee Email this Content As a result of an arm’s length employee no longer being considered to be a key employee, her employer transfers its “key person” permanent life insurance policy on her life to her for nominal consideration. ...

However, this position relied in part on the analogous activities of a commercial printer (including publisher) which, in IT-145R, para. 42, were considered to constitute manufacturing or processing. ...

Although she confirmed an interpretation of a provision that effectively read the phrase “or include” out of it, she did not consider it necessary to apply the Luke principle to do so as she considered that the wording of the provisions themselves evinced an intention that effectively ignored those two words. ...

CRA considers that for this purpose and other uses of the concept of a participating employer, an employer is considered to be a participating employer even if it has been dissolved or otherwise ceased to exist. ...

21 October 2019- 12:40am CRA applies IT-126R2 re the timing of addition of the wound-up subsidiary’s CDA Email this Content In IT-126R2, the CRA states that it considers that where the formal dissolution of a corporation is not complete but there is substantial evidence that the corporation will be dissolved within a short period of time, for the purpose of ss. 88(1) and (2) the corporation is considered to have been wound up. ...

When asked to comment on the meaning of “business” in the Act, CRA provided a response a significant portion of which read: … Stewart considered how to determine whether or not there is income from a source for the purpose of section 9. ...

Similarly, the assignment by the vendor of the tenant leases would be considered to form part of the single supply of the building where none of the purchase price was allocated to the leases. ...

In response to a question as to whether a participant in a joint venture includes a person who contributes solely property management services to the joint venture pursuant to a written joint venture agreement, CRA responded: We are currently reviewing the extent to which the Medallion decision would affect our position with respect to the issue of who can be considered to be a participant in a joint venture for purposes of section 273 …, and this includes taking into consideration the issue described in the question. ...