Search - considered

The correspondent considered that the retained earnings of ULC should exclude its proportionate share of the Partnership income for the stub period on the basis that " 2007-0248961R3 indicate[s]... that section 96 informs the determination of the amount of partnership income to be included in determining the amount of a corporate partner's retained earnings for the purpose of the thin capitalization rules. ...

After noting that the interest of the beneficiary of a discretionary trust "is essentially a right… to be considered by the trustee as to whether or not any trust property…should, in the trustee's discretion, be distributed…see Gartside v. ...

After noting that the interest of the beneficiary of a discretionary trust "is essentially a right… to be considered by the trustee as to whether or not any trust property…should, in the trustee's discretion, be distributed…see Gartside v. ...

In finding that s. 80 did not apply in respect of the forgiveness of amounts owing by Canco under the Guarantees, the Directorate noted (respecting s. 20(1)(c)(i)) that "Canco should not be considered to have borrowed money under the Borrowing" and (respecting s. 20(1)(c)(ii)) "the amounts owing by Canco were not amounts payable for property acquired for the purpose of gaining or producing income from property. ...

After the Directorate confirmed that 1999-0009295 (respecting the availability of a reserve under s. 40(1)(a)(iii) to a capital gain under s. 55(2) where the capital gain arose on the receipt of a promissory note that was "considered to have been accepted as evidence of or security for the balance payable of the purchase price of the shares... rather than] as 'absolute payment' of the debt"), and in responding affirmatively, the Directorate stated: [T]he fact that the annual repayment of the balance of sale price was payable at the rate of XXXXXXXX% of the future consolidated annual profits did not cause the Vendor to have the right to demand payment of the balance of the sale price before the end of the taxation year of the Vendor ending on XXXXXXXXXX. ...

., Meyer] would lend support to the position that absent any evidence to the contrary the tax paid to the Japanese tax authorities was voluntary and as such, should not be considered to be a "tax" within the meaning of subsection 126(1). ...

After concluding that Canco would not be entitled to a FTC on the basis inter alia that "a taxable capital gain resulting from a deemed disposition of property is considered to be Canadian-source income, which therefore cannot be included in the foreign non-business income for purposes of claiming a FTC," the Directorate went on to state: Article 21 [of the Canada-Japan Treaty] deems gains of a resident of Canada, which are taxed in Japan under the Convention, to arise from a source in Japan and requires Canada to provide a credit in respect of such Japanese tax against any Canadian tax payable on such gains. ...

It also stated: "We have not considered the application of GAAR to the conversion, but you may wish to consider it further. ...

…[T]he reference [in E] to "total depreciation allowed"… is considered to be a reference to the amount of CCA actually deducted and allowed on assessment in computing the taxpayer's income. ...

In finding that the distributions were taxable to him rather than his children, CRA stated (TaxInterpretations translation): In order for Children to be considered the true beneficiaries of Trust's income, they must be able to dispose of it to their full benefit. ...