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CRA provided an expanded rationale for this position in the following terms: Under trust law, capital gains would typically be considered to be part of the capital of a trust; however, a deemed capital gain created under a provision of the Act is a “nothing” for trust purposes. ...

There is not considered to be such a right where the shareholders’ agreement for a corporation carrying on a franchised operation (“Franchisee”) specifies that in the event that the individual manager of Franchisee (who holds 50% of Franchisee’s commons shares) departs, the other 50% common shareholder (the Franchisor) has the mandate to find an third party to purchase the manager’s shares. ...

CRA considered that because, after this change, the use of the single property (the triplex) was still 50% personal and 50% 3rd-party rental, the change of use rules did not apply. ...

The reasoning: Both the amalgamation and the acquisition of control are considered to occur at the same time (say, 12:01 am). ...

CRA found that this payment likely was not a royalty (given its non-contingent nature) and that the full amount was business income to Lossco either under s. 12(1)(a) (on the basis, applying Ellis Vision, that it “could be considered as an amount paid in advance for the use of chattels,” or under s. 9. ...

The most challenging of three situations considered by the Directorate was one where a terminated employee received from her employer: "Compensation 1" paid in lieu of notice for the period from Date 2 to Date 3; "Compensation 2," representing severance pay covering the period from Date 3 to Date 4; and her regular salary from Date 4 to Date 5. ...

First, s. 175.1 did not apply to "insurance policies,” which Tardif J considered to be a more apt description of this product than “warranty.” ...

CRA considered this argument to be precious given that the preamble to s. 107(2.1) stipulates as a precondition to its application that there be a disposition of property by the trust to the beneficiary. ...

16 February 2017- 12:55am In limited circumstances it may make sense for a CCPC target to make an s. 89(11) election Email this Content In the situation where, for example, a non-resident enters into an agreement to acquire a Canadian-controlled private corporation on September 1 and the agreement closes on December 1, it might be desirable for the target to make an election under s. 89(11) to be considered to not be a CCPC from the commencement of that year. ...

The requirement to shift to Canadian tax law retroactive to 2011 could mean that once the surplus has been recomputed, it will now be retroactively considered that dividends were paid in excess of available exempt surplus. ...