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Ruling: The proposed transactions will not by themselves be considered to result in a disposition or increase described in ss. 55(3)(a)(i) to (v), and will be deemed by s. 55(3.01)(g) to not be described in s. 55(3)(a)(ii). ...

The amalgamation will be considered to be an amalgamation within the meaning of s. 87(1). ...

ForCo will not be considered to carry on business through a permanent establishment, as defined in Article 5 of the Treaty, situated in Canada solely as a consequence of the secondment under the Secondment Agreement of certain employees of ForCo to work for CanCo in Canada in respect of the Projects, as described in paragraphs 12 and 13 above [describing the secondment arrangements], or the Projects’ tasks subcontracted to, and executed by, ForCo, as described in paragraphs 14 to 18 above [which include descriptions of the meetings and the task division]. ...

Rulings The amounts payable by FA Opco1 or FA Opco2 to FA Holdco under the Profit Transfer Agreements for a particular taxation year will, to the extent the amount is reflected in FA Opco1's or FA Opco2's respective "earnings" from an active business for the year or a subsequent year (computed before the application of the Profit Transfer Agreements), be considered, for purposes of s. 95(2)(a)(ii)(B), deductible in computing the "earnings" of FA Opco1 or FA Opco2, respectively, from an active business. ...

26 May 2016 IFA Roundtable Q. 8, 2016-0642041C6- s. 95(2)(a)(ii)(B) and borrowing to return capital-- summary under Clause 95(2)(a)(ii)(B) Summary Under Tax Topics- Income Tax Act- Section 95- Subsection 95(2)- Paragraph 95(2)(a)- Subparagraph 95(2)(a)(ii)- Clause 95(2)(a)(ii)(B) tracing approach to determining whether interest on money borrowed to return capital is considered for s. 95(2)(a)(ii)(B) to be deductible in computing exempt earnings Where FA1 borrows $350,000 from a sister (FA3) to make a capital distribution to its Canadian shareholder (Canco) on its Class A common shares, which had previously been issued by it to Canco solely to use the subscription proceeds of $800,000 to finance FA1’s active business, CRA would accept that the interest on the $350,000 loan would be received as deemed active business income by FA3 under s. 95(2)(a)(ii)(B). ...

Situations 1 and 2 CRA considered that the non-resident would have rights to all the Opco shares because the non-resident would have rights to the shares of each of the resident shareholders upon becoming a defaulted shareholder. ...

C’s income pursuant to s.104(13) would be considered to be US-source income. ...

Ruling The proposed transactions by themselves will not be considered to result in any disposition or increase in interest described in any of ss. 55(3)(a)(i) to (v). ...

Ss. 55(2) and 55(2.1) should not apply to deem such deemed dividends to be capital gains, provided that such deemed dividends do not exceed the safe income on hand that could reasonably be considered to contribute to the capital gain that could be realized on a disposition at FMV, immediately before the dividend, of the Class A and Class B common shares of DC2 held by each of TC1 and TC3 at the safe income determination time for the series of transactions that includes the payment of the deemed dividends. ...

Rulings Including that the transactions will not by themselves be considered to result in any disposition of property to, or increase in interest by, an unrelated person described in any of ss. 55(3)(a)(i) to (v). ...