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Pursuant to subsection 104(24), an amount is not considered to be payable in a taxation year unless it is paid in the year to the person to whom it is payable or the person to whom it is payable is entitled in the year to enforce payment thereof. ... It should be noted that foreign accrual property income of a non-resident trust is included in the income of a beneficiary pursuant to paragraph 104(13)(c) to the extent that the amount may reasonably be considered to have become payable to a beneficiary within the meaning of subsection 104(24). ... The amounts required to be included in computing the income of a beneficiary for a taxation year under subsections 104(13) and 105(2) are considered to have been earned by the beneficiary on the last day of the taxation year of the trust and are thus in respect of the taxation year or years of the trust which ended in the taxation year of the beneficiary. ...

Once such an amount on account of the sale price exceeds the adjusted cost base of the shares (as reduced by any previous such amounts), the excess is considered to be a capital gain that is realized at the time that that amount became determinable, and the adjusted cost base becomes nil. ... Where the sale agreement stipulates a minimum amount payable by the purchaser in any event, that amount is considered to become determinable by the vendor at the time of the sale. ¶ 6. ... For the purposes of this bulletin, an agreement that merely determines when amounts are to be paid, as opposed to determining the quantum of proceeds, is not considered to be an earnout agreement. ¶ 9. ...

Only requests relating to tax years ending in any of the 10 calendar years before the year you make the request will be considered. For example, a request made in 2006 must relate to the 1996 or a subsequent tax year to be considered. ... For example, a request made in 2006 must relate to the 1996 or a subsequent tax year to be considered. ...

When recommendations for corrective action in a prior audit relate to areas considered being at risk, more in depth follow-up audits are included in subsequent CAEB annual business plans. ... The remaining 13 action plans (11%) that were not considered complete relate to three audits: Use of Legislative Enforcement Provisions (May 2006); Tax Information Exchange MOU with Revenu Québec (February 2006); and Information Exchange MOU with Human Resources Development Canada (January 2005). ... In recognition of the lengthy renewal process and the number of stakeholders involved, the progress made in completing these is considered satisfactory. ...

The following is a common scenario: A Canadian resident corporation (CanCo) provides products or services to a non-arm's length non-resident corporation (ForCo) CanCo is considered the tested party Footnote 3 and the transfer price for this transaction is tested using a cost-based method Footnote4 CanCo receives financial assistance from one or more government agencies or programs In calculating the cost base for transfer pricing purposes, CanCo reduces the cost base by an amount equal to the government assistance received Policy When a cost-based transfer pricing methodology is used to determine the transfer price of goods, services, or intangibles sold by a Canadian taxpayer to a non-arm's length non-resident person and the Canadian taxpayer receives government assistance, the cost base should not be reduced by the amount of the government assistance received, unless there is reliable evidence that arm's length parties would have done so given the specific facts and circumstances. ... The following are some of the items that may be considered: identification of all characteristics that are relevant to the market or industry the accounting treatment of the government assistance in both the tested party and any comparable identified, for example, whether the government assistance is deducted from the costs or it is presented separately, Footnote5 since not considering differences such as the accounting treatment can affect profit level indicators whether and to what extent the government assistance is passed on to arm's length customers or suppliers in that particular market or industry when the government assistance is not fully passed on to arm's length customers or suppliers, the manner in which arm's length enterprises operating under similar circumstances would allocate such benefits between them through further enquiry any other relevant information To establish whether a transfer price is consistent with the arm's length principle, the most appropriate transfer pricing methodology must be used. ... For example, when the government assistance can be considered as highly integrated to the operations and significantly affects the economically relevant market conditions, a transactional profit split method may be the most appropriate transfer pricing method. ...

Penalty referrals The application of penalties under subsection 247(3) must be considered in all cases where the total of transfer pricing capital and income adjustments for a taxation year: exceed 10% of gross revenue for the year as calculated under subparagraph 247(3)(b)(i) or exceed $5,000,000 The following steps are involved in making a penalty referral: Taxpayers must be made aware of any transactions that may be subject to a subsection 247(3) penalty. ... At that time, the auditor will advise the taxpayer that the application of paragraphs 247(2)(b) and (d) are being considered with respect to the transactions under review. ... The taxpayer's representations and the additional information will be considered when completing the formal referral report. ...

As well, OCAC considered a CRA proposal for a new committee to examine settlement proposals made at audit stage where those settlements are material or precedent-setting. ... Please refer to Appendix A, which provides the list of "big data" sources considered as part of our review. ... Yours very truly, Colin Campbell, Chair, Offshore Compliance Advisory Committee Appendix A – "Big Data" Sources Considered as Part of OCAC Review Reporting of electronic funds transfers ("EFTs") under section 244.1 of the Income Tax Act ("ITA") Disclosure of transactions with related non-resident entities under section 233.1 of the ITA, reported on the form T106 Disclosure of foreign property held under s. 233.3 of the ITA, reported on the form T1135 Disclosure of information concerning foreign affiliates under section 233.4 of the ITA, reported on the form T1134 The Common Reporting Standard ("CRS") created under the Strasbourg Treaty and providing for automatic exchange of information about financial assets held offshore by Canadian taxpayers (at May 4, 2017 more than 40 jurisdictions, including a number of well-known "tax havens", had agreed to provide such information to Canada on a reciprocal basis, beginning in mid-2018). ...

Special rules may apply for property that was considered taxable Canadian property when you became a non-resident but may no longer be considered taxable Canadian property when you return to Canada. ... Previously deferred tax When you immigrate to Canada, you are generally considered to have disposed of, and to have immediately reacquired, most properties that you own on the date you immigrate. ...

The following expenses are allowable research expenses: salary or wages paid to an assistant the cost of minor equipment and supplies laboratory charges travelling expenses, including meals and lodging, that were incurred while travelling: between your home and the place where you temporarily lived while doing research work from one temporary work location to another on field trips connected to your research work Note If you lived temporarily in a place other than your home, the amount paid for meals, lodging and living expenses is considered a personal expense. ... Royalties Royalties are considered payments received as compensation for using or allowing the use of a copyright, patent, trademark, formula or secret process. ... Note If you are a specified employee and your employer made contributions to your EPSP, you may have to pay tax on the amount that is considered an excess amount. ...

Note Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contributio n room. ... Management fees related to a TFSA trust and paid by the holder are not considered to be contributions to the TFSA. ... How to know your TFSA contribution room The TFSA contribution room is the total amount of all of the following: the TFSA dollar limit of the current year any unused TFSA contribution room from previous years any withdrawals made from the TFSA in the previous year Note Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room. ...