Search - considered

CRA indicated (perhaps based on Deltona) that where two corporations are amalgamated in Canada, the amalgamated corporation is considered to have been incorporated in Canada. Although a Canadian corporation that is continued outside Canada will not thereafter be considered to have been incorporated in Canada, it will nonetheless be resident in Canada if its central management and control is in Canada- and it will be deemed under s. 132(2) to be resident in Canada in respect of activities carried on by it through any Canadian permanent establishment. ...

CRA responded that length of stays, and the nature of the activities, of the individual in each jurisdiction would have to be considered, to determine whether the individual usually lives in one state as compared to the other, and that the relevance of particular lengths of time would need to be considered in the circumstances: no set periods of time were applied as tests. ...

14 March 2023- 11:03pm CRA confirms that there are no ITCs for appliances acquired during the construction of a rental residential complex Email this Content CRA confirmed that since appliances and common area furniture and equipment that are acquired in connection with the construction of, say, a residential complex such as an apartment building and which do not become fixtures, will be considered to have been acquired for the purpose of the intended exempt rental of the completed units, no input tax credits will be available. ... CRA also summarized the tests it considered should be applied in determining whether, at common law, personal property has become a fixture. ...

Regarding whether the compensation payment was currently deductible, CRA indicated that this was a question of fact on which it could not conclude, but nonetheless suggested: [I]n a context where the landlord pays compensation to his tenant because of his obligations under the Civil Code of Québec, this element could then be considered dominant and the compensation could be considered a current expense. ...

Regarding the synergy tax credit for Québec businesses ("CSEQ") provided under s. 776.1.38 of the Taxation Act, CRA considered that this time occurred (upon the taxpayer having made the claim in prescribed form) on the due date for the return for the year, assuming that the credit claimed did not exceed the maximum claim limit. To the extent this claim limit applied, CRA considered that the entitlement arose when the taxpayer filed a request to carry back or carry forward the amount to another taxation year. ...

5 March 2025- 10:42pm CRA indicates that the processing of fuel could constitute “processing” for ITC and Class 29 purposes Email this Content Whether equipment acquired by the taxpayer qualified for the Atlantic investment tax credit (AITC) turned, in part, on whether its use in the production or processing of fuel could be considered to be the manufacturing or processing of goods for sale in the context of the description of a Class 29 property (and as required by the definition of “qualified property” in s. 127(9).) After referring to the meaning accorded to “processing” in Tenneco and Repsol, CRA stated that “in our view the production or processing of a fuel could be considered to be the manufacturing or processing of a good for sale for purposes of the AITC depending on the particular circumstances.” ...

Treaty having regard to the requirements thereunder that the deemed dividend amount be considered under U.S. tax law to have been derived by Parentco through Sisterco LLC and Parentco LLC and that by reason of those LLCs being fiscally transparent, the U.S. treatment of such amount was the same as its treatment would be had it been derived directly by Parentco. CRA considered that even if there was no adjustment in the U.S. pursuant to competent authority proceedings, this test would be satisfied given that from a US tax perspective, Parentco would have a reduced cost of the inventory considered, from that perspective, to have been purchased by it directly from Canco, so that the s. 247(12) deemed dividend corresponded to income (i.e., inventory profit) generated by Parentco. ...

17 November 2016- 12:42am Athabasca University – Tax Court of Canada finds that a University’s purpose in acquiring books for its students was their education rather than the (free) “sale” of the books to them Email this Content Athabasca University, which provided online courses to its students and delivered printed books to them without any additional charge, was entitled to a GST rebate on its purchases of the books provided that it could be considered, as required by ETA s. 259.1(2) to have acquired the Books “otherwise than for the purpose of supply by way of sale.” Lyons J applied the single supply doctrine to find that, as the University was making a single supply of education (a service) to its students, it should be considered to have acquired the books for this “ultimate” purpose rather than for the purpose of merely transferring their ownership to the students. ...

The Directorate started off on a promising footing, stating that “travel expenses include food, beverage and accommodation costs,” but then stated: [A]n allowance for accommodation expenses calculated exclusively on the basis of distance, time or other criteria will not be considered reasonable if it does not represent an estimate of the cost of accommodation that may be incurred by the employee during the travel that generated entitlement to the allowance. … [W]here an employee sleeps in the truck cab, it is unlikely that the allowances for accommodation expenses in the three scenarios provided will be considered reasonable for the purposes of paragraph 6(1)(b). ...

9 January 2017- 7:59am CRA accommodates a pension plan correcting excess borrowing on a going-forward basis through assumption of the debt by a 149(1)(o.2)(ii) sub Email this Content The Directorate considered that a pension plan breached Reg. 8502(i) as the amount of borrowing in respect of certain real estate properties of the Plan exceeded their cost. The Directorate thus considered that this excess borrowing limitation applies on a property-by-property basis. ...