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To the extent that the transfer of some or all of the funds to the trust by the foreign company can reasonably be considered to provide benefits in respect of services rendered by the share award recipients to a Canadian resident entity, paragraph 94(2)(k.1) would cause the transfer of funds by the foreign company to the foreign trust to be deemed to be made by a resident of Canada even though the resident of Canada has not made an actual contribution, either directly or indirectly, to the trust. ...

Adrian Tan, "The Emergence of the Profit-Split Method", Canadian Tax Highlights, Vol. 27, No. 2, February 2019, p. 1-- summary under Subsection 247(2) Summary Under Tax Topics- Income Tax Act- Section 247- New- Subsection 247(2) Where profit-split method (PSM) is appropriate in transfer pricing (TP) (p. 1) The PSM is considered to be the most appropriate method if (1) both parties to the transaction "make unique and valuable contributions"; (2) identification of reliable arm's-length comparables is a challenge; and (3) businesses operations are "highly integrated such that the contributions of the parties cannot be reliably evaluated in isolation from each other. ...

This should be considered and clarified before the details of the proposal are released. ...

Pursuant to Canadian common-law partnership principles, each member is considered to have an undivided interest in the property of the partnership. ...

. … [A]ccording to ETA subsection 132(2), a non-resident person with a permanent establishment in Canada is considered to be resident in Canada in respect of the person's activities carried on through that establishment; thus, such a company should meet the definition of a listed financial institution resident in Canada (ETA paragraph 240(3) (c)) and should be allowed to register for GST/HST on a voluntary basis. ...

In the case of a trust with corporate beneficiaries, additional factors should be considered: a) Does the corporate beneficiary directly own more than 10 percent of the shares representing votes and value? ...

However, if the “amount” of the corporation’s debt obligation is equal to the principal amount of the debt ($100), it appears that the corporation could avoid departure tax for which it otherwise might be liable if the trading discount on the debt payable were taken into consideration, even though the net FMV of the debts receivable and payable, considered in isolation, is nil. ...

. … If NR Co chooses not to file an application pursuant to paragraph 153(7)(a) to be classified as a qualifying non-resident employer, or is not eligible to be considered a qualifying non-resident employer for some other reason (for example, failing to comply with the requirements of the certified non-resident employer program), it would be liable to withhold, but it would be eligible for the CEWS. ...

The 2021 Explanatory Notes indicate that corporate partners may claim the s. 110(1)(e) deduction in some circumstances involving employees of partnerships, which appear to be those referred to in 2001-0115933, where CRA noted that there were no agreements in place which limited any of the employees’ employment relationship to any of the partners and that "[c]onsequently, each of the employees of the partnership are considered to be employees of each of the partners of the partnership for the purposes of section 7"- so that it should be possible to allocate the deduction among the corporate partners who are treated as employers under such policy. ...

Tyler Berg, "Registered Plan Taxes: Recent Experiences", Canadian Tax Focus, Vol. 13, No. 1, February 2023, p. 3-- summary under Subparagraph (b)(i) Summary Under Tax Topics- Income Tax Act- Section 207.01- Subsection 207.01(1)- Advantage- Paragraph (b)- Subparagraph (b)(i) Imposition of advantage tax where employees subscribe for post-freeze common shares (p. 4) 2009-0320311I7 considered that where, following a freeze transaction, a key employee subscribed for new common shares through a TFSA, the requirements of s. ...