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The dividend will be considered an “excluded amount” since it was not derived from a related business in respect of the individuals for the year. ... A in Year 2 would not constitute an “excluded amount” and would, absent any other consideration, be considered split income of Mr. ... A from Serviceco in Year 2 will be considered to be derived directly or indirectly from a related business. ...

28 May 2015 IFA Roundtable Q. 3, 2015-0581511C6- IFA 2015 Q.3: Entity Classification CRA Tags 248(1) "corporation" Principal Issues: Whether the CRA still follows a "two-step" approach for entity classification, and are there any new entities or arrangements being considered? ... Can the CRA confirm that it still follows this "two-step" approach, and can you update us on any new entities or arrangements that are being considered? ... Our preliminary view is that these entities have many characteristics in common with "limited liability companies" ("LLCs") that exist in the U.S., which are generally considered to be corporations for the purposes of the Act, but that they also have many characteristics in common with the various forms of partnerships that exist in the U.S., which are generally considered to be partnerships for the purposes of the Act. ...

Accordingly, in those types of situations, where Amalco makes an election after the time that Targetco shares are delisted, Amalco will not be considered to be a public corporation. 2017 CTF Annual Conference CRA Roundtable Question 12: Election not to be a public corporation Under paragraph (c) of the definition of “public corporation” in subsection 89(1) of the Income Tax Act (Act), a Canadian resident corporation that was considered to be a public corporation because its shares were previously listed on a designated stock exchange in Canada is considered to continue to be a “public corporation” unless, after the time it last became a public corporation, either it elects not to be a public corporation (under subparagraph (c)(i) of the public corporation definition) or the Minister designates it not to be a public corporation (under subparagraph (c)(ii) of the public corporation definition). ... Prior to the formal delisting of its shares, can Targetco make a valid election (Election) not to be a public corporation under subparagraph (c)(i) of the public corporation definition at a time when Acquisitionco owns 100% of Targetco so that when Acquisitionco and Targetco vertically amalgamate (Amalgamation) to form a new corporation (Amalco), Amalco would not be considered to be a public corporation? ... Accordingly, in those types of situations, where Amalco makes an election after the time that Targetco shares are delisted, Amalco will not be considered to be a public corporation. ...

If the taxpayer is not such a corporation, the interest expenses would be "prescribed expenditures", and therefore would not be considered as "qualified expenditures" for the purpose of the ITC, by virtue of paragraph 2902(a) of the Regulations. ... Department's answer Where a taxpayer is acting as agent for another person with respect to the prosecution of SR&ED, that other person would have ownership rights to the SR&ED and would be considered to have incurred the SR&ED expenditure made by the taxpayer. ... Non-government assistance Whether an amount would be considered a "non-government assistance" for the Canadian corporation would depend on whether the amount must be included in its income by virtue of paragraph 12(1)(x) if that paragraph were read without reference to subparagraphs (vi) and (vii) thereof. ...

However, in the circumstances discussed, the dividend will not be considered to have been derived from a related business for the year because the business was not carried on in the particular year. ... It is our view that the dividend received by the Individual would be considered to be derived directly or indirectly from a related business. ... Therefore, in the circumstances described, the dividend paid by the Corporation will not meet the requirements to be considered an “excluded amount” under subparagraph (e)(i). ...

If we apply the methodology provided by the FCA, it would appear that an issuer of debentures could be considered to have realized a loss. Does the CRA agree that an issuer could be considered to realize a loss on the conversion and, if so, that the loss is a loss described in subsection 39(2) or an otherwise deductible capital loss? ... Additionally, although not raised in Agnico-Eagle, the potential application of subsection 143.3(3) of the Act to the computation of any gain or loss arising on a conversion of a debenture should be considered in any similar fact situation, and could impact the application of the methodology endorsed by the FCA. ...

11 October 2007 Roundtable, 2007-0251981C6- 2007 TEI Question RRSP Qualified Investment Unedited CRA Tags 204(d) Principal Issues: Will the CRA provide further guidance with respect to specific security investments that would be considered a qualified investment for purposes of the amended definition of "qualified investment" in paragraph (d) of section 204 of the Act? ... The amended definition of "qualified investment" in paragraph (d) of section 204 of the Act uses the broad term "securities", this term should be interpreted using the ordinary meaning of the term as used in the financial community. 2007-025198 TEI dated October 11, 2007 Question from page 6- 2007 Budget measures regarding qualified investments for RRSP Will the CRA be providing further guidance on specific investments that will now be considered a qualified investment for purposes of the amended definition of "qualified investment" in paragraph (d) of section 204 of the Income Tax Act (the "Act")? CRA Response The CRA will not be providing a list of securities that may now be considered qualified for purposes of amended paragraph (d) of the definition of "qualified investment" in section 204 of the Act. ...

If an election under subsection 98(3) of the Income Tax Act (the "Act") is not made, (a)at what point is each partner considered to have disposed of its partnership interest? (b)will each partner obtain the increase in the adjusted cost base of its partnership interest pursuant to subparagraph 53(1)(e)(viii) and subsection 66.4(6) of the Act before the partner is considered to have disposed of his partnership interest? Department's Position (a)Provided the assets of the partnership are distributed such that each of the partners has received the appropriate pro-rata undivided interest therein before dissolution of the partnership, the partners will be considered to have disposed of their partnership interest upon dissolution based upon the terms of the partnership agreement, the relevant provincial law and the particular facts of the case. ...

Reasons: Payment would be considered to be premium paid to the RRSP by the annuitant. ... If the payment was considered a gift to the RRSP, it would not be deductible but would be included in the calculation of Part X.1 tax on excess contributions. ... However, no receipt should be issued where the payment is considered a gift to the RRSP. ...

The CRA’s position had been that contingent liabilities and accounting reserves, such as future employee benefits and pension obligations, reduce the safe income that can reasonably be considered to contribute to the capital gain on a share. ... The audit practices that a CRA auditor typically carries out to verify the calculation of safe income that can reasonably be considered to contribute to the capital gain on a share are similar to audit steps on any other audit issue. ... That includes a verification of the portion of the safe income that can reasonably be considered to contribute to the capital gain on each share of the corporation in any given year. ...