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CEWS and TPM-17 Rheault: Has CRA considered its position in IFA 2020 Q.5, in light of the OECD’s differing views? ... Therefore, that wording is usually used in situations where we were seriously considering whether a s. 247(3) penalty would apply, but considered that the information before the Committee was insufficient. That is not to say that the penalty would not be considered in the future in a similar situation. ...

The automatic cash sweeps that occur as part of a physical cash-pooling arrangement would likely be considered to form part of such a series, which would make s. 15(2.6) unavailable. ... Anticipated frequent and ongoing movements in the account balances of participants to a notional cash-pooling arrangement would likely be considered to form part of a series of loans, repayments, and other transactions. ... Would CCA under the Act be considered to have been claimed for taxation years that ended before US LLC became a foreign affiliate of Canco? ...

Another interpretive issue is whether Subco can be considered to be "formed” on the merger or combination for the purposes of s. 40(3.5)(c)(i). ... This is slightly fewer cases than in prior years, but still considered to be within norms. ... As a result, It is our view that foreign exchange gains or losses in respect of a debt obligation are considered to realized or sustained only on the settlement or extinguishment of the debt. ...

The main question here is whether a payment pursuant to representations and warranties in an M&A type of transaction can be considered as payment for the settlement of such indemnities, or as proceeds of disposition of shares being disposed of in such a transaction. ... In our view, when looking at s. 84(3), the amount considered to be paid for the repurchase shares under s. 84(3) should be equal to the amount of the settlement of the indemnity claim. ... However, since then, there has been additional information to be considered. ...

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. ...

This approach, however, is considered on a case-by-case basis only and offers no certainty to suppliers who are impacted. ... CRA Response There are legal implications that need to be reviewed and considered prior to pursuing any legislative amendments. ... No changes to this automated accounting process are being considered at this time. ...

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. ...