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1 June 2025- 11:37pm CRA illustrates an ordering rule for determining whether s. 15(2.17) applies to a cross-border notional cash pooling arrangement – and doubts that the s. 15(2.6) exception applies Email this Content CRA indicated that anticipated frequent and ongoing movements under a notional cash-pooling arrangement would likely be considered to form part of a series of loans, repayments, and other transactions for s. 15(2.6) purposes. ...

., milk quotas) disposed of on s. 85(1) partial rollover transaction so that the only capital gain is realized on CGD-eligible property 2000-07-07 7 July 2000 External T.I. 2000-0015455 F- Allocation de retraite Income Tax Act- Section 248- Subsection 248(1)- Retiring Allowance the principal shareholder continues as an officer, he is not considered to have retired, even if the corporation's business has been sold ...

Topic Descriptor 7 October 2022 APFF Roundtable Q. 1, 2022-0942081C6 F- Safe Income Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) contingent liabilities that reduce shares’ FMV should also reduce safe income on hand 7 October 2022 APFF Roundtable Q. 2, 2022-0942091C6 F- Taxable preferred shares and shareholders’ agreement Income Tax Act- Section 248- Subsection 248(1)- Taxable Preferred Share- Paragraph (f)- Subparagraph (f)(ii) whether a right to a top-up in the event of an IPO is inconsistent with receiving FMV proceeds 7 October 2022 APFF Roundtable Q. 3, 2022-0942121C6 F- THRP- PRTA – Versement de dividendes imposables Income Tax Act- Section 125.7- Subsection 125.7(2.01) parent could pay a dividend in, say, Period 27, without adverse CEWS impact on Canadian sub Income Tax Act- Section 125.7- Subsection 125.7(14.1) there is no adverse CEWS impact of a non-resident parent paying dividends to individuals 7 October 2022 APFF Roundtable Q. 4, 2022-0942131C6 F Income Tax Regulations- Regulation 1101- Subsection 1101(5b.1) CRA is willing to adapt a prescribed requirement, that an election be made by letter attached to the return, to internet filings 7 October 2022 APFF Roundtable Q. 5, 2022-0947611C6 F- Limited Partnership and Loans Income Tax Act- Section 53- Subsection 53(2)- Paragraph 53(2)(c)- Subparagraph 53(2)(c)(v) guarded acceptance of distributions of LP profits as loans, followed by set-off against draws in January Income Tax Act- Section 40- Subsection 40(3.1) loans made only to avoid s. 40(3.1) gains due to income gains not being added to ACB until next year, may be acceptable 7 October 2022 APFF Roundtable Q. 6, 2022-0942141C6 F- Rollover under 70(6) and gifts to charities Income Tax Act- Section 70- Subsection 70(6)- Paragraph 70(6)(b)- Subparagraph 70(6)(b)(ii) charitable gifts by a spousal trust will disqualify it 7 October 2022 APFF Roundtable Q. 7, 2022-0942731C6 F- Permanent establishment and teleworking Treaties- Income Tax Conventions- Article 5 having an employee, with general authority to contract, telework from his cottage in another province does not necessarily create an employer PE there Income Tax Regulations- Regulation 102- Subsection 102(1) Reg. 400(2)(b) PE is not necessarily an employer establishment to which the employee reports to work Income Tax Regulations- Regulation 400- Subsection 400(2)- Paragraph 400(2)(b) employer is required to be carrying on business through an employee’s cottage to be considered to have a PE there under Reg. 400(2)(b) 7 October 2022 APFF Roundtable Q. 8, 2022-0942151C6 F- Surplus stripping Income Tax Act- Section 245- Subsection 245(2) permissible use of sale through subsidiary to avoid s. 84.1 Income Tax Act- Section 256- Subsection 256(5.11) range of factors considered Income Tax Act- Section 84.1- Subsection 84.1(1) incorporating a sub through which a share sale will occur so as to avoid s. 84.1 is not per se GAARable 7 October 2022 APFF Roundtable Q. 9, 2022-0942281C6 F- Section 80- proposals under BIA Income Tax Act- Section 80- Subsection 80(2)- Paragraph 80(2)(a) forgiveness under a Bankruptcy proposal occurred when it was court-approved Income Tax Act- Section 80- Subsection 80(13) s. 80(13) tax liability does not arise until the forgiveness 7 October 2022 APFF Roundtable Q. 10, 2022-0942161C6 F- Règles particulières sur les changements d’usage Income Tax Act- Section 45- Subsection 45(2) where s. 45(2) election is made on change to rental use, no change of use when the property changes back to actual personal use Income Tax Act- Section 45- Subsection 45(1)- Paragraph 45(1)(c) no change in the regular use under s. 45(1)(c) where a property regularly alternates between personal and rental use 7 October 2022 APFF Roundtable Q. 11, 2022-0942751C6 F- Changement de fin d'exercice et opposition Income Tax Act- Section 165- Subsection 165(3) CRA will not vacate an assessment that was not invalid or unfounded Income Tax Act- Section 249.1- Subsection 249.1(7) a corporation cannot change its year end by objecting to the 1st year’s initial assessment 7 October 2022 APFF Roundtable Q. 12, 2022-0950691C6 F- Revenu de location- DPE Income Tax Act- Section 248- Subsection 248(1)- Property building treated as a single property for purposes of principal use test Income Tax Act- Section 129- Subsection 129(4)- Income or Loss rental income from the smaller portion of a building not used in manufacturing could be assimilated to active business income 7 October 2022 APFF Roundtable Q. 13, 2022-0942181C6 F- Transfer of an RRSP at death Income Tax Act- Section 248- Subsection 248(23.1)- Paragraph 248(23.1)(a) s. 248(23.1)(a) does not deem the amount paid to be received as beneficiary of the estate as per s. 146(8.1) Income Tax Act- Section 146- Subsection 146(8.1) an amount paid by an estate of the deceased’s RRSP to satisfy the claim of his separated surviving spouse did not qualify as a refund of premiums 7 October 2022 APFF Roundtable Q. 14, 2022-0942191C6 F- Safe-income determination time Income Tax Act- Section 248- Subsection 248(10) safe income arising on a sale and after the safe-income determination time could be used for subsequent dividends not paid as part of the same series Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(b) no need for CRA flexibility regarding safe income issues arising from early formation of a Buyco Income Tax Act- Section 55- Subsection 55(1)- Safe Income Determination Time incorporation of Buyco may trigger safe-income determination time 7 October 2022 APFF Roundtable Q. 15, 2022-0942241C6 F- Safe income inclusion of dividend tax refund Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) taxes reduce safe income attributable to realized taxable capital gain net of the refundable tax generated from dividend Neal Armstrong. 7 October 2022 APFF Roundtable. ...

Given that both Brown J and Wagner J considered the common law and civil law approaches to rectification as being largely aligned, it would appear that rectification, to substitute share for note consideration, likely would be available on facts similar to Juliar if the common intention at the time were to take back the maximum amount of note consideration, and shares for the balance, and the transaction was not implemented this way only due to a calculation or implementation error. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2015-04-29 10 March 2015 External T.I. 2014-0552551E5 F- Vente du droit d'exploiter une sablière Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) sale of rights to extract sand generally not caught unless a profit à prendre Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1)- Qualified Farm or Fishing Property sale of rights to extract sand could be considered sale of qualified farm or fishing property Income Tax Act- Section 9- Capital Gain vs. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2017-12-27 27 October 2017 External T.I. 2017-0688971E5 F- New Class 14.1 Income Tax Act- Section 13- Subsection 13(39) non-application on s. 85 roll can result in recapture-but disposition bump available to NAL transferee Income Tax Act- Section 85- Subsection 85(1)- Paragraph 85(1)(e) permitted agreed amount for Class 14.1 property rollover must be UCC even where amortized cost (equalling boot) is higher Income Tax Act- Section 13- Subsection 13(38)- Paragraph 13(38)(c) a s. 85 roll of purchased goodwill at an agreed amount of unamortized cost can trigger recapture 31 October 2017 External T.I. 2017-0690691E5 F- New section 15 back to back loan rules Income Tax Act- Section 15- Subsection 15(2.16)- Paragraph 15(2.16)(c)- Subparagraph 15(2.16)(c)(i)- Clause 15(2.16)(c)(i)(B) application to a term deposit pledged by a family corporation to secure a business loan taken out by a shareholder Income Tax Act- Section 15- Subsection 15(2.16)- Paragraph 15(2.16)(c)- Subparagraph 15(2.16)(c)(ii) term deposit to secure shareholder loan potentially a specifed right Income Tax Act- Section 18- Subsection 18(5)- Specified Right pledged term deposit could be specified right 2014-03-19 30 January 2014 External T.I. 2013-0515761E5 F- Dividend received General Concepts- Payment & Receipt book entries merely record and do not establish that a dividend was paid Income Tax Act- Section 82- Subsection 82(1)- Paragraph 82(1)(a) book entries are ancillary and do not establish receipt 2014-03-05 4 December 2013 External T.I. 2012-0465891E5 F- Primes d'assurance / Premiums Income Tax Act- Section 15- Subsection 15(1) insurance premium benefits qua shareholder Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a)- Subparagraph 6(1)(a)(i) sub plan with only one employee of particular employer could be a group plan if benefits similar to those for employees in other sub plans 2014-02-26 7 February 2014 External T.I. 2014-0516921E5 F- Crédit et frais résiduels Income Tax Act- Section 13- Subsection 13(21)- Depreciable Property lease/sale distinction established based on the legal relationship Income Tax Act- Section 6- Subsection 6(2) employer potentially can choose to prorate terminal credits or deficiencies (based on sale price on car lease termination relative to residual value) in applying formula General Concepts- Substance lease characterized as lease unless its actual legal effects differ Income Tax Act- Section 13- Subsection 13(21)- Undepreciated Capital Cost- A lease under which lessee bore all risk implicitly treated as lease rather than purchase 23 December 2013 External T.I. 2013-0505481E5 F- Application des paragraphes 6(6) et 110.7(1) Income Tax Act- 101-110- Section 110.7- Subsection 110.7(1) interaction between ss. 6(6) and 110.7(1)(b) Income Tax Act- Section 6- Subsection 6(6) Treasury Board rates considered to be reasonable 2014-02-19 19 December 2013 External T.I. 2012-0468851E5 F- Deduction for Insolvency Income Tax Act- Section 61.3- Subsection 61.3(3) maximizing deduction through debt parking with parent rather than simple settlement subject to s. 61.3(3) ...

CRA appears to implicitly accept that such an ILP will not nonetheless be deemed by s. 132(2) to be resident in Canada by virtue of carrying on all its activities through the GP, who presumably would have an office in Canada that might be considered to be a Canadian PE of the ILP. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2019-07-24 23 April 2019 Internal T.I. 2018-0750821I7 F- Revenu d’emploi d’un Indien Other Legislation/Constitution- Federal- Indian Act- Section 87 employee-lease out servicing activity does not give rise to exempt income if only connection to reserve is employer residence Income Tax Act- Section 4- Subsection 4(1)- Paragraph 4(1)(a) employee leasing-out generally considered to be a separate business 2019-07-17 30 April 2019 Internal T.I. 2018-0757591I7 F- Part IV tax and trust Income Tax Act- 101-110- Section 104- Subsection 104(19) s. 104(19)-designated dividend not received as dividend until trust year end Income Tax Act- Section 186- Subsection 186(1)- Paragraph 186(1)(a) a dividend received by a trust and immediately paid to a connected corporate beneficiary was taxed under Part IV if the connection ceased before the trust year end 7 March 2019 Internal T.I. 2018-0781511I7 F- Fabrication ou transformation Income Tax Act- Section 125.1- Subsection 125.1(3)- Canadian Manufacturing and Processing Profits commercial printing or photocopying operations may not be M&P Income Tax Regulations- Schedules- Schedule II- Class 29 printing or photocoping operations may no longer be manufacturing or processing 2011-11-18 4 November 2011 Internal T.I. 2011-0413341I7 F- Bien agricole admissible Income Tax Act- Section 73- Subsection 73(3)- Paragraph 73(3)(c) rollover unavailable where taxpayer rented out the land to a farmer Income Tax Act- Section 248- Subsection 248(1)- Farming nursery qualifies as farming if focused on growing rather than selling Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1)- Share of the Capital Stock of a Family Farm or Fishing Corporation- Paragraph (a)- Subparagraph (a)(i) meanng of “actively engaged on a regular and continuous basis” requirement Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1.3)- Paragraph 110.6(1.3)(c) s. 110.6(19) election effected a post-1987 acquisition Income Tax Act- Section 70- Subsection 70(10)- Child extended meaning of "child" 8 November 2011 Internal T.I. 2011-0416651I7 F- Crédit d'impôt pour frais médicaux Income Tax Act- Section 118.2- Subsection 118.2(2)- Paragraph 118.2(2)(a) interest expense on loan to finance surgery cannot qualify 2011-11-11 27 October 2011 Internal T.I. 2010-0382161I7 F- CPN-144- remises et ristournes Income Tax Act- Section 9- Computation of Profit purchase price rebates earned after purchase are income rather than inventory cost reduction Income Tax Act- Section 10- Subsection 10(1) change in methodology for determining cost does not require CRA approval 2 November 2011 External T.I. 2011-0413641E5 F- CIEE Income Tax Act- Section 122.3- Subsection 122.3(1)- Paragraph 122.3(1)(b) qualifying activities determined by reference to the employer’s business rather than employee’s activities 2011-11-04 7 October 2011 Roundtable, 2011-0412221C6 F- Résidence fiducie- Cause St. ...

Income Tax Act- Section 51- Subsection 51(1) s. 51(1) applies where share conversion pursuant only to directors’ resolution Income Tax Act- Section 86- Subsection 86(1) reorganization of capital generally requires articles of amendment 7 October 2011 Roundtable, 2011-0408351C6 F- Honoraire d'évaluation d'une police d'assurance Income Tax Act- Section 148- Subsection 148(1) no deduction from gain for disposition expenses Income Tax Act- Section 148- Subsection 148(9)- Adjusted Cost Basis- A valuing the FMV of acquired property not considered to be part of its cost 7 October 2011 Roundtable, 2011-0412211C6 F- Feuillets T4A comptabilité d'exercice Income Tax Regulations- Regulation 200- Subsection 200(1) CRA will not automatically assess where a T4A appears to show unreported income 7 October 2011 Roundtable, 2011-0412141C6 F- Whether shares of different classes are identical Income Tax Act- Section 47- Subsection 47(1) otherwise identical shares are different if they have different stated capital 7 October 2011 Roundtable, 2011-0407951C6 F- Options, don d'actions Income Tax Act- 101-110- Section 110- Subsection 110(1)- Paragraph 110(1)(d.01) cannot claim both a s. 110(1)(d.01) and s. 110(1)(d.1) deduction 7 October 2011 Roundtable, 2011-0420781C6 F- Transfert de RPA à un REER au décès. ...

He concluded: Since the MGICs, as a group of persons, controlled the Federation and the Federation controlled ProRé, the MGICs must be considered to also control ProRé by virtue of the simultaneous control principle set out in subsection 256(6.1) of the ITA, both immediately after and immediately before the disposition by the MGICs of the Class A shares of ProCap to ProRé. ...