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16 February 2010 External T.I. 2010-0354801E5 F- CIRD- construction d'un logement-- summary under Ownership Summary Under Tax Topics- General Concepts- Ownership individual is considered to become owner of home in construction when it becomes habitable In the context of a general inquiry on the home renovation tax credit, CRA stated: In the situation where an individual builds the individual’s housing unit on land owned by the individual, it is generally the CRA's view that the individual will be considered to own a housing unit for HRTC purposes as soon as the housing unit is habitable. ...

10 April 1997 External T.I. 9703265- SUBSTANTIAL CANADIAN PRESENCE-- summary under Paragraph 206(1.1)(d) Summary Under Tax Topics- Income Tax Act- Section 206- Paragraph 206(1.1)(d) If shares are acquired on the date of incorporation and the $250,000 test in s. 206(1.1)(d)(iii)(E) is satisfied later in that calendar year, the shares will be considered to not be foreign property from the date of acquisition. If by December 31 the $250,000 threshold has not been exceeded, the shares will be considered to be foreign property from their date of acquisition. ...

14 January 1999 External T.I. 9828555- CHANGE TO DIVIDEND RATE-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) Where shares bearing a non-cumulative dividend of 10% are exchanged on an s. 86 reorganization for shares bearing a non-cumulative dividend of 15%, the shareholder with the increased dividend rate will be considered to have received an s. 15 benefit, and other shareholders may be considered to have received fair market value proceeds under s. 69(1)(b). ...

14 January 1999 External T.I. 9828555- CHANGE TO DIVIDEND RATE-- summary under Paragraph 69(1)(b) Summary Under Tax Topics- Income Tax Act- Section 69- Subsection 69(1)- Paragraph 69(1)(b) Where shares bearing a non-cumulative dividend of 10% are exchanged on an s. 86 reorganization for shares bearing a non-cumulative dividend of 15%, the shareholder with the increased dividend rate will be considered to have received an s. 15 benefit, and other shareholders may be considered to have received fair market value proceeds under s. 69(1)(b). ...

18 February 1994 External T.I. 9324055- NRO- "MAKING OF A LOAN" (HAA 6666-1)-- summary under Non-Resident-Owned Investment Corporation Summary Under Tax Topics- Income Tax Act- Section 133- Subsection 133(8)- Non-Resident-Owned Investment Corporation Where an NRO is owed a loan receivable from a related taxable Canadian corporation, the making of an election under s. 78(1), or a change to the loan agreement in such a manner that the existing debt obligation is considered to have been disposed of, will result in the NRO being considered to have made a loan to the affiliate. ...

20 May 1994 External T.I. 9405045- STRUCTURED SETTLEMENT UNDER NO FAULT INSURANCE-- summary under Paragraph 56(1)(d) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(d) Provided that all the requirements of the Insurance Act (Ontario) and relevant regulations are complied with, periodic payments made in settlement of damages for personal injury sustained in an automobile accident will be considered as non-taxable damages. Such a settlement will be considered a structured settlement as contemplated in IT-365R2, if the requirements in paragraph 5 are otherwise met. ...

3 December 1993 External T.I. 9200995 F- Transfer of Farm Inventory to a Corporation-- summary under Other Summary Under Tax Topics- General Concepts- Fair Market Value- Other Where the market price of wheat is $2 per bushel but under a gross revenue insurance program a farmer is guaranteed a price of $4 per bushel, the fair market value of wheat inventory transferred to his corporation will be considered to be $2 per bushel. Any entitlement under the insurance program will be considered to be separate property that is an account receivable of the individual. ...

INVESTMENT BUSINESS-- summary under Specified Investment Business Summary Under Tax Topics- Income Tax Act- Section 125- Subsection 125(7)- Specified Investment Business A corporation whose only business was the purchase of accounts receivable from an associated corporation at a discount and the collection of those receivables would generally be considered to be earning income from an active business rather than income from property and, therefore, would not be considered to be carrying on a specified investment business. ...

In finding that the 5% Treaty-reduced rate applied to either deemed dividend, CRA stated: In the context of applying the provisions of Article 10 of the Treaty, subsection 96(1) of the Act does not apply and CanLP is not considered a separate person. ... It follows, in our view, that each of CanCo1 and CanCo2 would be considered, for the purposes of Article 10 of the Treaty, to have paid their pro rata share of the dividend deemed to have been paid pursuant to paragraph 214(3)(a)…. Furthermore, the above structure would satisfy the indirect voting control test in para. 2(a) so that, for example, it would be considered that Foreign Grandparent "satisfies the controlling threshold of controlling directly or indirectly at least 10 per cent of the voting power in each of CanCo1 and CanCo2. ...

Is the member’s income from the LLC considered to arise as it is earned by the LLC rather than only once it is distributed by the LLC to its members? ... Notwithstanding Anson, CRA considered that where a Canadian-resident member’s share of LLC income is subject to U.S. tax but the income is not distributed, no Canadian foreign tax credit will be available in the year the income is earned – nor in a subsequent year given that s. 126(1) does not permit the carryforward of the foreign tax. CRA also considered that this result is consistent with Canada’s Treaty obligations. ...