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CRA Responses (a) For purposes of this response, it is assumed that USco and LLC were not corporations considered “inactive” for purposes of filing the T1134 information return. ... b) If so: i) Are there specific factors to be considered in order to make this determination (for example, in the trust deed)? ... Since each situation must be analyzed in light of its own circumstances, the CRA is not in a position to set out a list of specific factors to be considered in this analysis. ...

If so, assuming that one or more of the steps that are part of the series of transactions is an avoidance transaction, would the CRA be of the view that they would reasonably be considered to result in a misuse or abuse of the provisions of the Act such that subsection 245(2) would be applicable? ... One (or more) of the members of LP is a corporation resident in Canada (Canco2) that has a sufficient partnership interest in LP, such that FA is considered to be a foreign affiliate of that corporation as defined under subsection 95(1) of the Income Tax Act (Act) for the purposes described in subsection 93.1(1.1) of the Act. ...

Could both the Initial and Subsequent Agreements collectively be considered “an agreement” for purposes of s. 273(1) so that s. 273(1)(c) could apply? ... CRA Response Whether property is considered to be of nominal value for purposes of the definition of “qualifying member” in paragraph 156(1)(c) of the Excise Tax Act (ETA) will be determined on a case by case basis. ...

A similar fact pattern was considered in CRA document 2015-0622751I7 (August 16, 2017). ... Where the taxpayer is a corporation, subsection 90(9) provides for the deduction for the corporation’s taxation year in which the amount was included under subsection 90(6) of an amount that may reasonably have been considered to have been deductible in computing the income under any of the provisions listed in subparagraphs 90(9)(a)(i) or (ii) if the amount included in income under subsection 90(6) had been instead paid to the corporation by the creditor affiliate or partnership as a dividend and, if applicable, partnership distribution. ...

Briefly, subsection 74.4(2) can apply to a transfer or loan of property by an individual to a corporation where one of the main purposes of the transfer or loan may reasonably be considered to be to reduce the income of the individual and to benefit, either directly or indirectly, by means of a trust or by any other means whatever, a person who is a designated person in respect of the individual. ... Thus, the Partnership would be considered to be the taxpayer for the purposes of paragraph 13(38)(d). ... Consequently, the entire property, in this case the entire lot, must be considered in determining whether a property was used primarily in the course of carrying on a farming business. ...

Surplus-Stripping Q.8 – Pipeline transactions Has the Department considered whether a carve-out from the proposed rules could be made for pipeline transactions? ...