Search - considered

7 March 2022 External T.I. 2021-0895571E5- Clarification of Comments in 2020-086483-- summary under Salary Deferral Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement an RSU award as signing bonus or inducement to move, or as an award for a current performance accomplishment. might not engage the SDA rules The correspondent noted the position in 2020-0864831I7 that full-value restricted share units (“RSUs”) granted early in the calendar taxation year of the employer (the “Grant Year”) were considered to be in respect of services in the previous year, so that such award came within the salary deferral arrangement (SDA) definition, and would not be excluded under para. ... CRA also acknowledged that a grant of full-value RSUs could be considered to be solely in respect of services rendered after the grant date (i.e., only for future services), stating: [I]t is not inconceivable that a signing bonus for a new employee would be solely in respect of services to be rendered in the year in which the relevant employment agreement was executed. ... Full-value RSUs awarded to an employee might be considered to relate solely to services rendered in the Grant Year if, for example, the facts and documents established that the grant was made in recognition of a performance accomplishment (such as a large sale) that occurred earlier in the Grant Year. ...

Substantial amounts of cash and deposits in excess of those required for use of the business and that are retained on a permanent basis, will not be considered to be funds used in the business. The only receivables considered to be assets used in an active business are trade accounts receivable that arise from sales in the course of the corporation's active business. ...

(Tax Window, No. 4, p. 12, ¶1282)-- summary under Subsection 55(2) Summary Under Tax Topics- Income Tax Act- Section 55- Subsection 55(2) Where shares of Opco are redeemed by Holdco giving rise to a deemed dividend of $2.2 million at a time that the safe income of Opco is $1.8 million, Holdco designates $1.8 million as a separate taxable dividend under s. 55(5)(f) and Opco receives a dividend refund of tax of $100,000, the $400,000 of income earned by Opco on which it paid refundable tax will be considered to be part of the safe income of Opco. Consequently, s. 55(2) will apply to the dividend of $400,000 because it would not be considered to have been paid out of safe income. ...

(Tax Window, No. 28, p. 14, ¶2415)-- summary under Small Business Corporation Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation In order for land to be considered to be used in an active business, it generally must be subjacent to any building or structure affixed to the land or immediately contiguous land used as a parking area, driveway, yard, garden or similar land that is necessary for the use of the building. However, where zoning restrictions require that a larger parcel of land be acquired, the entire parcel could be considered to be an active business asset. ...

15 February 2012 External T.I. 2011-0426531E5- Exchange of Gold Bullion for ETR-- summary under Disposition Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Disposition exchange of gold certificate for gold likely not a disposition Based on the Exchange Traded Receipts of the Royal Canadian Mint representing undivided legal and beneficial interests in gold bullion and on the statement in IT-387R2, para. 4 that an exchange of gold certificates for gold bullion is not considered to be a disposition, the exchange of such ETRs for gold bullion might not be considered to be a disposition. ...

The parenthetical exception in s. 88(1.70 would be considered to apply as Acquisitionco would be considered to have acquired control of Pubco as a result of transactions with persons with whom it dealt at arm's length. ...

(August 1990 Access Letter, ¶1365)-- summary under Subsection 15(1) Summary Under Tax Topics- Income Tax Act- Section 15- Subsection 15(1) Where a Canadian public company confers on all its common shareholders a right to buy units consisting of shares, and warrants to acquire shares of the corporation, both the "right" and the "warrant" would be considered a right to buy additional shares referred to in s. 15(1)(c). If for some reason s. 15(1)(c) did not apply, then the shareholder would be considered to have received a taxable benefit at the time entitlement to the unit of shares and warrants arose. ...

No. 1, p. 17, ¶1009)-- summary under Paragraph 8(1)(j) Summary Under Tax Topics- Income Tax Act- Section 8- Subsection 8(1)- Paragraph 8(1)(j) Where an employee begins a drive between home and the employer's place of business and during the course of that drive is contacted by a cellular phone and diverted to another place to perform an employment activity, the portion of the drive from the point of the diversion will be considered employment related and the portion of the drive up to that point will be considered to be personal in nature. ...

(Tax Window, No. 4, p. 14, ¶1314)-- summary under Subsection 13(27) Summary Under Tax Topics- Income Tax Act- Section 13- Subsection 13(27) Equipment which has been acquired and is being tested is not considered for purposes of s. 13(27)(a) to be used for the purpose of earning income. ... A piece of equipment will be considered to be capable of producing a commercially saleable product for purposes of s. 13(27)(d) when it can perform its task at such a rate and at such a level of quality that a profit would reasonably be expected to ensue. ...

15 March 2013 External T.I. 2012-0443471E5- Taxable Preferred Shares-- summary under Taxable Preferred Share Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Taxable Preferred Share Before concluding that shares would be considered to be taxable preferred shares where they were entitled to 75% of the profit resulting from an adventure in the nature of trade, CRA stated: [A] formula that contains a variable which is a pre-determined percentage of net profit will be considered as fixed…. ...