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That CRA adopt the position that a non-resident vendor can pay the actual amount of tax owing (rather than 25% of the gain) in order to receive a s. 116 certificate (the vendor’s payment of the actual amount of Canadian tax owing should be considered to be acceptable security respecting the disposition). ...

In this regard, CRA ruled that, for the purposes of s. 55(3.1)(b)(i)(A)(II), in determining whether 10% or more of the FMV of the Foreign Spinco common shares is derived from shares of TC or DC “any indebtedness of Foreign Spinco that is not a secured debt and that is not a debt related to a particular property will be considered to reduce the FMV of each property of Foreign Spinco pro rata in proportion to the relative FMV of all property of Foreign Spinco.” ...

.'s conclusion that TD LLC must be considered to be liable to tax by virtue of all of its income being fully and comprehensively taxed under the U.S. ...

In Montour, Bourque, J. had found that s. 42 was constitutionally inapplicable to the Mohawks in that case, who had also failed to pay duty on tobacco products: by reason of the circumstances of the case before her warranting a departure from the framework developed in Van der Peet ([1996] 2 S.C.R. 507) in respect of Aboriginal rights- so that the applicants' participation in the tobacco trade should be considered protected by an Aboriginal right to freely trade; and by reason of an inferred meta-treaty (the Covenant Chain) having been unjustifiably breached by s. 42 because the Crown had not discussed tobacco-related issues with the Mohawks prior to the passage of the Excise Act. ...

[Turning then to the look-through rule in s. 84.1(2.3)(c)(ii) as to the meaning of “own, directly or indirectly,” CRA indicated that it would not consider a person to have an interest in a trust if that person's interest depended solely on the occurrence of an uncertain event, such as a child predeceasing a parent so that, during the lifetime of such child or relevant members of the child group, the parent with such contingent interest would not be considered to own any shares of the purchaser corporation held by the trust. ...

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 a third party to purchase the manager’s shares – or that, in such event, the manager’s shares are to be automatically redeemed by Franchisee. ...

21 February 2017- 12:34am There are still numerous open questions on the taxation of Canadian trusts Email this Content Comments on the taxation of trusts resident in Canada include: A CRA indication that a charity is a majority-interest beneficiary of a trust when the trustee has the discretion to make a gift to the charity under the declaration of trust may not be correct, given that “it is unclear whether the charity has the power to compel the administration of the trust, which is generally recognized as a necessary condition for a person to be considered a beneficiary.” ...

Paris J instead found that what should be considered to have occurred was that Armour used all of the $2.4 million credit owing to it by the Province (which was not allocated under any of the agreements with the Province) to acquire the fee simple interest to the property on behalf of ADL and that, in exchange for that $2.4 million, Armour acquired the new (nominal-rent long-term) leasehold interest in the property from ADL Thus, the $2.4 million was a capital expenditure to acquire a capital asset (being such leasehold interest – which presumably would not be treated by CRA as a Class 13 asset). ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2017-07-26 28 June 2017 External T.I. 2016-0653921E5 F- Beneficiary/person beneficially interested Income Tax Act- Section 70- Subsection 70(3) a testamentary trust could be a beneficiary or beneficially interested in an estate Income Tax Act- Section 248- Subsection 248(25) testamentary trust could be considered to have a right as beneficiary in estate 2014-12-10 10 October 2014 APFF Roundtable, 2014-0534821C6 F- Question 2- APFF Round Table Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(l) non-resident transferor must obtain SIN 10 October 2014 APFF Roundtable Q. 4, 2014-0534831C6 F- 2014 APFF Roundtable, Q. 4- Late-filed 86.1 election & 220(3.5) penalty Income Tax Act- Section 86.1- Subsection 86.1(2) general principles applied to relief of s. 86.1 late-election penalties 10 October 2014 APFF Roundtable Q. 4, 2014-0538231C6 F- 2014 APFF Roundtable, Q. 4- Beneficially interested Income Tax Act- Section 248- Subsection 248(25) legatee by particular title is included notwithstanding priority over heirs 10 October 2014 APFF Roundtable Q. 19, 2014-0538041C6 F- 2014 APFF Roundtable, Q. 19- Stock dividend Income Tax Act- Section 74.4- Subsection 74.4(2) non-application to stock dividend, cf. s. 86 reorg Income Tax Regulations- Regulation 6205- Subsection 6205(2) purpose test in Reg. 6205(2)(a) is not necessarily accomplished by all estate freezes/"arrangement" broad Income Tax Act- Section 15- Subsection 15(1.1) not engaged if stock dividend is proportional Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) SI apportionment to stock dividend prefs 10 October 2014 APFF Roundtable Q. 21, 2014-0538091C6 F- 2014 APFF Roundtable, Q. 21- Impact of the Descarries Case Income Tax Act- Section 245- Subsection 245(4) Descarries failed to recognize scheme against indirect surplus stripping Income Tax Act- Section 248- Subsection 248(28) will not impose double taxation under s. 84(2) and (3) Income Tax Act- Section 84- Subsection 84(2) Descarries failed to recognize breadth of s. 84(2) ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2014-11-26 10 October 2014 APFF Roundtable Q. 20, 2014-0534671C6 F- D&D Livestock Income Tax Act- Section 245- Subsection 245(4) unjustified duplication of fiscal attributes is abusive Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(b)- Subparagraph 55(2.1)(b)(i) CRA is concerned by planining that can result in an unjustified duplication of fiscal attributes including ACB 2014-11-19 30 June 2014 Internal T.I. 2013-0508411I7 F- Part IV Tax and the Dividend Refund Income Tax Act- Section 152- Subsection 152(4)- Paragraph 152(4)(a)- Subparagraph 152(4)(a)(i) failure to circularly calculate Part IV tax and dividend refund is neglect given published TIs Income Tax Act- Section 186- Subsection 186(1) when to stop circular calculation for cross dividends arising after tuck under 6 October 2014 External T.I. 2014-0543751E5 F- Rollover of a part of an interest in a partnership Income Tax Act- Section 85- Subsection 85(1.1) fractional partnership interest qualifies as eligible property Income Tax Act- Section 248- Subsection 248(1)- Property partnership interest is one property- but fraction thereof also is property if transferred 17 October 2014 Internal T.I. 2014-0535121I7 F- Hypothèque et créance irrécouvrable Income Tax Act- Section 50- Subsection 50(1) second mortgagee not entitled to deduction as it did not exercise its remedies 10 October 2014 APFF Roundtable, 2014-0538141C6 F- Interest deductibility Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(c)- Subparagraph 20(1)(c)(ii) interest on mortgage assumed on devise of land to beneficiary considered as amount payable for the property 10 October 2014 APFF Roundtable, 2014-0538021C6 F- Meaning of beneficiary Income Tax Act- Section 248- Subsection 248(25) Propep applied: beneficiary under s. 55(5)(e)(ii) included beneficially interested per s. 248(25)(a) Income Tax Act- Section 55- Subsection 55(5)- Paragraph 55(5)(e)- Subparagraph 55(5)(e)(ii) beneficiary under s. 55(5)(e)(ii) includes beneficially interested under s. 248(25)(a) ...