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The test in paragraph (a) requires the members of the LLC to be considered under the taxation laws of the United States to have derived an amount through the LLC. ... The CRA noted that, for US federal tax purposes, USsub is considered to owe the loan to USco and deducts the interest expense in respect of the loan in the computation of its separate taxable income. ... As described above, amounts paid as distributions by DLP (that are considered to be dividends for US federal tax purposes) to a Canadian partner are subject to article IV(7)(b). ...

Quaere correctness of including sales proceeds in gross revenues (p. 12:9) There is some doubt concerning the correctness [under 1T-443] of including the proceeds of sale of leasing property in gross revenues since leased property is generally considered to be "capital property," and thus the sale proceeds of the property should be considered to be payments on account of capital. ... This issue was raised in a CRA technical interpretation [2002-0156515 where] … A Co, B Co, and C Co each retained 10 percent of the leased equipment. … It is the CRA's position [in IT-443, para. 10] that the gross revenue of the partnership from a particular source is to be included in the gross revenue of the corporation from that source to the extent of the corporation's profit-sharing percentage. … [I]f the activities of the corporation and the partnership are considered to be two separate businesses of the corporation, the following determinations must be made: (1) which business is the corporation's principal business, (2) whether this principal business is the leasing of leasing property, and (3) whether the gross revenue from that principal business is at least 90 percent of the gross revenue of the corporation for the year from all sources. ...

Formula One contravenes the requirement for separate-entity determination of a PE (p. 126) Philip Morris … held that an Italian corporation can be considered the permanent establishment of multiple non-resident members of the same corporate group. … [In response] paragraph 41.1 of The 20I0 Model Treaty Commentary on Article 5(7) (now paragraph 117 of the 2017 Model Treaty Commentary) states that: The determination of the existence of a permanent establishment under the rules of paragraph 1 or 5 of the Article must, however, be done separately for each company of the group. ... The Court of Appeal nevertheless concluded that the team did not have the required element of ownership, management and authority over the establishments and concluded that the team's control over the venues was so transitory that it could not be considered a fixed place of business. … The application of the exception for short-term recurring activities was clarified in the revised 2017 Model Treaty Commentary, which explained that a short-term activity might give rise to a permanent establishment when nature of the business dictates that shorter term. ... The Supreme Court of India improperly considered the activities of all affiliated entities globally in concluding that a business was being carried on in India by FOWC. ...

Jim Samuel, Byron Beswick, "Selected Issues in Transactions Involving Debt", 2019 Conference Report (Canadian Tax Foundation), 18:1 – 27-- summary under Subsection 18(9.1) Summary Under Tax Topics- Income Tax Act- Section 18- Subsection 18(9.1) No s. 18(9.1) deduction for penalty incurred on disposition of property (p. 18:16) [T]he CRA’s general view is that a penalty that is incurred in connection with the disposition of a property (for example, the repayment of a mortgage) is not considered to be made in the course of carrying on a business or earning income from property. ... Hypothetical interest deduction (p. 18:16) A penalty will qualify for deduction only if it can reasonably be considered to relate to, and does not exceed the value at the time of payment of the penalty of, the interest (that is, the “hypothetical interest value”) that would have otherwise been paid or payable by the taxpayer on the debt, in the absence of the repayment, for a taxation year ending after that time. ... Alternatively, if the intermediary is considered to be in the business of lending money, consideration could be given to whether the penalty paid might be deductible, under section 9 …. ...

This issue was considered in the United States in commentary concerning an early version of the U.S. constructive sale rules, which were close cousins to the SDA Rules: [fn 47: The proposed constructive sale rule that was the subject of the cited commentary (Section 9512 of the Revenue Reconciliation Bill of 1996, which was not enacted in the form proposed) bore considerable similarity to the deemed disposition provision of the SDA Rules (subsection 80.6(1), read in conjunction with the SDA definition). ... The U.S. multi-factorial approach (p. 10:27-28) [T]he multi-factorial approach (taking into account for example volatility, yield, and interest rates in respect of the property in question over the term of the arrangement) suggested by the Senate report, as well as a somewhat objective methodology like option pricing or other approaches involving mathematical financial models, should be considered in seeking to apply the substantially all test in the SDA Rules. Another such approach that has been considered in the United States as potentially helpful in addressing the above-mentioned challenge in the constructive sale rules is a so-called delta approach, which involves measuring the rate at which an offsetting position changes in value relative to an underlying asset. ...

If the fresh-start rules apply, the gain is calculated as $300 ($400- $ 100), and on the facts no further adjustment is made under paragraph 95(2)(f.l), because no part of the gain is considered to have accrued before the taxpayer acquired the non-resident. ... Given the CRA's comment on the threshold level before an FA is considered to have a business, do the fresh-start rules now extend to an FA holdco and bump the basis in lower-tier Fas? ...

.-- summary under Article 18 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 18 Retirement compensation arrangement as pension (p. 493) [U]nder the model convention, payments from an RCA are likely to be considered a pension rather than income from employment. From a Canadian perspective, pursuant to the Income Tax Conventions Interpretation Act (ITCIA), RCAs are considered to be pension vehicles if "pension is not otherwise defined in the tax convention concluded between Canada and a foreign country. ...

Because of the deficit of $100 at the FA Holdco level, the $200 dividend deemed paid to Canco would be considered to have been paid $100 out of exempt surplus and $100 out of pre-acquisition surplus. Because the FA Holdco shares have no ACB, only $100 would be considered to have been received tax-free in Canada. ...

.-- summary under Paragraph 248(8)(b) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(8)- Paragraph 248(8)(b) Requirements for valid disclaimer of income interest (p. 340) A taxpayer who executes a valid disclaimer of an income interest in a trust is generally considered not to have acquired the income interest….In order-to constitute a valid disclaimer for these purposes, the CRA's position is that the refusal must occur within a reasonable time after the recipient becomes aware of the gift or interest and before the recipient accepts any funds or benefits in respect of the gift or interest. However, if die taxpayer accepts any funds from the trust in respect of die income interest or executes a disclaimer in respect of the income interest in favour of another- person, the taxpayer is considered to have acquired the income interest and therefore cannot execute a valid disclaimer. ...

The capital beneficiaries of the trust own a beneficial interest in the trust property, which should be considered “property”. ... Uncertainty as to tainting effect of a deceased source individual (p. 16) Where a business used to be operated by a source individual who is now deceased, it is uncertain whether the business will remain a “related business”, or whether the income from such business going forward will still be considered “derived directly or indirectly from a related business”. ...