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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. ...

However, some sticks (made of wheat, rice and spelt) were considered by him to be excluded from zero-rating as sticks or other snack foods, rather than being bread products, given inter alia that they were fried rather than baked. ...

Each of Luxco and UKCo, as the intended borrowers, would be considered to have received a loan from Canco of $50, so that there is a deemed shareholder loan of $100 under s. 15(2.17) even though Canco only advanced $50. ...

Graham J considered that there was a crucial distinction between the T2059’s agreed amounts, which could not be altered by the Minister, and the allocation of the consideration, which was a purely factual matter which was merely recorded on the T2059, and which either CRA or the taxpayer were free to challenge in the Tax Court as not according with the actual facts. ...

28 May 2017- 11:35pm CRA states that using the s. 55(3)(a) redemption exception to circumvent the safe income limitation could be GAARable Email this Content The CRA position on creditor-proofing suggested that if Opco, which has no safe income and whose common shares have a nominal adjusted cost base and paid-up capital, uses cash (or other assets) to pay a dividend to its shareholder (Holdco) to fund Holdco’s purchase of real property to be rented to it, that cash dividend likely would be considered to have a tainting purpose described in s. 55(2.1)(b)(ii). ...

12 June 2017- 1:45am CRA does not rule out generating a s. 207.7(2) refund where an RCA trust distributes a life insurance policy to its employee beneficiary Email this Content CRA considered, respecting an RCA trust with an employee as its sole beneficiary, that its “holding of a life insurance policy with life insurance coverage (death benefit) in a year is a benefit that is conditional on the existence of the RCA” and, thus, was a benefit described in para. ...

In the absence of much background information on the management services, including not being provided with any management services agreements, CRA stated that “the nature of any management services provided by the Parent would have to be clarified to determine how any particular property or service could be considered to be an input into those services, before determining the extent that the property or service was acquired for the Parent’s commercial activities.” ...

After being asked about fire chiefs, who were on call 24 hours a day throughout the year with a clearly identified vehicle, equipped with all emergency equipment, to enable them to get to an emergency scene quickly, CRA stated that “an emergency response vehicle…is generally considered to be clearly identified if it is readily identifiable by the general public as a police or fire vehicle because of symbols or lettering on the exterior of the vehicle.” ...

Respecting a requirement that there is no significant change in its membership or activities, this will not be considered to occur by virtue of a transfer of membership between parties not dealing at arm’s length or the issuance of additional memberships to them. ...

On the other hand, if there instead is no indirect debt and the $30 direct debt to Canco is funded entirely or at least as to $20 out of surplus funds derived from the intermediary's operations, the shareholder of the intermediary effectively will be considered under the formula to have funded the entire amount of the $30 direct loan even though its share capital account was only $10 – so that Canco will be deemed under the formula to have paid all the interest under the direct loan to that shareholder. ...