Search - considered

After noting that “a paragraph 94(3)(f) election cannot be filed separately from a return of income as to do so would not meet the necessary condition noted in paragraph (c) of the definition of ‘electing trust’,” the Directorate indicated, regarding the first scenario: A paragraph 94(3)(f) election would be considered valid if it is filed with the return of income for the “first taxation year” even if that return is filed past its due date. … Given the fact that a non-resident that receives a letter containing proposed assessed amounts would almost certainly make a valid paragraph 94(3)(f) election before an audit assessment is actually issued, it appears unlikely that such a non-resident would ever be prevented from making a valid election. ...

Could ss. 17.1 and 247 both be applied to these facts without being considered as be in conflict, notwithstanding that the arm’s length rate determined in the context of s. 247(2) might be higher, lower or equivalent to the Reg. 4301(b.1) rate? ...

V(4) means three calendar months or days totaling an equivalent of three months, the Directorate distinguished the findings in Smith (96 DTC 3246) and McCombie (2000 DTC 3636) as to the meaning of “month,” and stated: Considering that the testing period of three months is not required to be consecutive, the term “three months” should be considered to refer to the aggregate time measured by the number of months. ...

The TSO considered that the progress method was not available because the taxpayer was engaged in manufacturing and installing kitchen equipment, rather than in the construction of a building, road, dam, bridge or similar structure, as required in IT-92R2, para. 1. ...

[T]he term "paid... for the year"...relates to the year for which the taxpayer is liable to pay tax to the foreign jurisdiction for the income which is considered to have been earned under the tax law of the foreign jurisdiction even though the income may not be realized in Canada in the year for which the foreign tax is paid. ...

[T]o the extent that it can be established that the amount owing which was assumed by CFA 3 on the absorptive merger was in respect of assets previously acquired by CFA 3 in the course of carrying on an active business, the loan to CFA 3 by the Taxpayer should be considered as having been incurred for the purpose of earning income from an active business. ...

Respecting the second condition, CRA stated "providing a range of municipal-type services or providing a key service traditionally offered by the provinces or territories such as social services, oversight of the environment, health services, and education is generally considered to constitute performing a function of government," and then stated: It is not sufficient to merely state that they are providing several municipal type services. ...

However, if a similar benefit is provided by the corporation to all the employees, including those who also are shareholders, the latter will be considered to have received a benefit by reason of their employment....If the advantage is conferred by the corporation on the employee-shareholder as employee, the corporation may reduce the amount included in the computation of its income... by the amount included in the income of the employee by virtue of paragraph 6(1)(a) [and otherwise for s. 15 benefits]. ...

15 December 2014 Internal T.I. 2012-0445361I7 F- Remboursement de frais de déménagement-- summary under Subsection 2(1) Summary Under Tax Topics- Income Tax Act- Section 2- Subsection 2(1) criteria for determining “ordinarily resides” under s. 62 (coterminous with “ordinarily resident” under s. 250(3)) Before indicating that the question of whether the reimbursement of expenses of selling a residence at Location 1 in Canada, which had continued to be held by an employee after his relocation to a job abroad at Location 2, could be treated as a taxable benefit if such residence was sold at the time the employee was relocated again to another location and position abroad at Location 3, turned on whether he should be considered to ordinarily reside at Location 2, CRA indicated that the terms "ordinarily reside" and "ordinarily resident" have the same meaning and that “the notion of ‘ordinarily reside’ relates more to everyday life than to the permanent nature of the situation,” and then listed the following indicators as to whether a taxpayer "ordinarily resides" at a particular new location: • the relocation of the taxpayer and the members of his or her household with their belongings, furniture and other items in their household to the new location. • the availability of the former residence, that is to say if it was sold, rented, or if it has been advertised for sale or rent (if the taxpayer is the owner), or if the lease was terminated (if the taxpayer is the lessee). • the chosen residence at the new location accords with the ordinary lifestyle and needs of the taxpayer (for example, if the taxpayer would be able to live in the new residence for an indefinite period or if instead it is a hotel room or a room in a friend’s home). • the transfer of banking services of the taxpayer and the taxpayer's other financial arrangements (including insurance policies) from the old to the new location. • changing the taxpayer’s driver’s licence and registration certificates for non-commercial vehicles (to satisfy the requirements of the new location or to report the new residence address). • a change in health care coverage to the new location. • the transfer of certain services from the old to the new location (e.g., subscriptions to newspapers or magazines, cable, internet, and telephone services). • the transfer of social relationships and other interests, from the old to the new location (such as participation in recreational, social, political or religious activities, and membership in personal or professional organizations). ...

[T]he existence of a separate legal entity clause contained in the Netherlands Antilles legislation governing private foundations would not...preclude an arrangement from being considered as a trust. ...