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CRA considered, notwithstanding s. 104(24), that if the amount cannot be legally payable, actually paying it will not bring it within the s. 104(6) rule. Accordingly, there was no s. 104(6) deduction to the trust, and CRA considered the distributions to be includible in the children’s income under s. 105(1) rather than s. 104(13). ...

CRA considered that this payment would be a retiring allowance (and thereby presumably excluded from CPP contribution requirements) except for the amount paid in excess of the equivalent of 20 days, which generally would be considered to be employment income given that this excess, in the absence of the termination, would have been paid out to the employee at the end of the year. ...

Although this characterization was considered by it to be unlikely, the Directorate considered the possibility that the taxpayer acquired an interest in a non-resident trust by virtue of the borrower making a loan to such trust, and stated that this would cause s. 75(2) to apply since the loan amount would ultimately revert to the taxpayer. ...

29 March 2021 Internal T.I. 2020-0865791I7- CEWS- eligible remuneration-- summary under Payment & Receipt Summary Under Tax Topics- General Concepts- Payment & Receipt remuneration not considered to be paid by journal entry The CEWS (wage subsidy) is generated based on the amounts of “eligible remuneration paid to the eligible employee.” CRA stated, in the context of an employee who also was the controlling shareholder of the eligible entity, that “where salary and wages are only reflected by journal entry as an expense by the employer with a corresponding credit to a due to shareholder loan account, such salary and wages are not considered eligible remuneration paid to an eligible employee.” ...

6 April 2023 Internal T.I. 2022-0929731I7- Articles 18(2) and (3) of the Canada-Italy Treaty-- summary under Section 5 Summary Under Tax Topics- Other Legislation/Constitution- Federal- Income Tax Conventions Interpretation Act- Section 5 CPP and OAS are normally considered pensions for Treaty purposes Regarding the receipt by an individual resident in Italy of periodic Canada Pension Plan (“CPP”) and Old Age Security (“OAS”) benefit payments, the Directorate stated: [S]ection 5 of the Income Tax Conventions Interpretations Act provides a definition of the term “pension” in respect of payments that arise in Canada. Both the CPP and OAS are normally considered pensions for purposes of Canada’s tax treaties. ...

After noting that that if USco's employees had been seconded to the Canadian affiliates, then their services could not be counted in determining whether USco had either a construction site PE or a services PE, CRA stated: only the services rendered at the construction site can be considered. ... V, para. 9, CRA concluded: If a PE exists under paragraph 3...only the services provided offsite would be considered in determining whether a PE exists under paragraph 9. In no PE exists under paragraph 3, then all of the services in Canada can be considered in the determination of whether a PE exists under paragraph 9. ...

Accordingly, for the purpose of determining whether Aco's rental operations are a SIB, Aco is not considered to employ the employees of the partnership of which it is a partner, since such employees are considered to be employed by the partners collectively. ...

"fill the hole" of capital), a similar permitted use will be available in respect of a deduction claimed under s. 20(1)(e), CRA stated: However, we do not appear to have yet considered whether the fee that is entitled to the amortized deduction under paragraph 20(1)(e) will be limited and proportionate to the portion of the borrowed funds that are considered to "fill the hole" of capital (as described in the preceding paragraph) or if no proration will apply to such a fee. ...

Thus, a telecommuter with a home office would not be considered to be reporting to work at an establishment of the employer when exercising his or her functions. … Generally, the CRA considers that a presence on a weekly basis at the establishment of the employer, for a duration of the equivalent of a typical day’s work of the employee in fulfilling the employee’s normal workload, is sufficient to lead to a conclusion that the employee reports to work there. … [A]n employee who is not considered as reporting to a given establishment of the employer will be deemed to report for work at the establishment of the employer from which the remuneration is paid by virtue of subsection 100(4)…. ...

12 January 2011 Internal T.I. 2010-0375801I7 F- Bien agricole admissible détenu avant 1987-- summary under Property Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Property property status of Quebec lands divided into cadastral lots was analyzed on a lot-by-lot basis Before finding that Quebec lands that had been devised to a widow by her farmer husband, who used only part of the lands in his farming business, should be analyzed on a cadastral lot-by-lot basis, respecting meeting the tests in s. 110.6(1.3)(c)(ii), so that only those lots that had been used by deceased husband in farming so qualified, the Directorate stated: [C]adastral lots are considered, for the purposes of the Act, to be separate real property …. Consequently, the determination of the status of the land, i.e., whether or not it can be considered to be property used principally in the business of farming, must be made on a lot-by-lot basis. ...