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The answer to this depends on whether the Bare Trust is considered to dispose of the Bond when the Bond matures and the proceeds are paid to the Bare Trust. ... We understand that the Bare Trust considered herein is resident in Canada, has no Part I tax payable for the year, and has not realized a capital gain in the year. ... The result is that the termination of the Bare Trust would not be considered to result in a disposition of the property held by the Bare Trust. ...

Entities that are subject to tax, but with respect to which tax may be relieved under an integrated system, are not considered "fiscally transparent". ... A trust that is not disregarded for Canadian tax purposes would generally not be considered to be an entity that is "fiscally transparent". ... A trust that is not disregarded for Canadian tax purposes would generally not be considered to be an entity that is "fiscally transparent". ...

Could the Agency explain the situation it considered and the position that it developed? ... Based on the facts of the situation described in the ruling request, taking into consideration the foreign law under which the Partnership was formed, the provisions of the partnership agreement and the terms and conditions of the loan agreement between the Partnership and the U.S. lender, the CRA came to the conclusion that the partners of the Partnership were considered to be the payers of the interest on the Loan. ... Furthermore, where the facts of a particular situation support a look-through approach so that a Canadian resident partner is considered to have paid the interest, the first sentence of paragraph 6 of Article XI of the Canada-United States Income Tax Convention applies so that such interest is deemed to arise in Canada for purposes of Article XI. ...

24 November 2013 CTF Roundtable, 2013-0508151C6- Upstream Loans CRA Tags 90(7) Principal Issues: When subsection 90(7) applies to deem a loan to have been made, when will the deemed loan be considered "repaid"? Position: A paragraph 90(7)(a) deemed loan will be considered repaid when a specified debtor repays its loan or indebtedness to the intermediary or it is reasonable to consider that a loan or indebtedness of a specified debtor is no longer funded by a loan from a foreign affiliate. ... Can the CRA provide guidance as to when this deemed loan would be considered repaid? ...

In general, any commercial activity carried on by a corporation (or partnership or trust) should be considered a business. ... In determining gross income, payments that can reasonably be considered reimbursements of expenses (including reimbursement for the supply of goods) will be ignored. In general, the safe harbour for excluded shares is intended as a bright line test for situations where amounts received by individuals would otherwise be considered a reasonable return. ...

Reasons FOR POSITION TAKEN: The legal basis for our position, outlined in the 1994 and 1995 TEI (E9410400 and E9510220), was not presented and accordingly not considered by the court in arriving at the decision. ... The amounts of the cheques themselves are not necessarily included in capital only the resultant overdraft that would have arisen had the cheques been honoured on the day they were delivered; the day that payment was considered to have been made. ... This and other such legal issues were not presented and considered by the court in reaching its decision, accordingly it is our view that our position remains unchanged until a subsequent challenge where the court will have the opportunity to fully consider the legal arguments that support the position we have taken. ...

The CRA ruled that the payments of periodic non-participating interest would not be considered to be “participating debt interest” if, at or before the time of such payment, no Additional Amount had been paid or become payable. However, all payments of periodic non-participating interest would be considered to be “participating debt interest” subject to withholding tax once an Additional Amount is paid or becomes payable. ... All interest payments would then be considered to be “participating debt interest” as of the time a contingent or dependent amount is paid or payable. ...

Position: To the extent that only subsection 15(1) of the Act is relevant in the analysis as to whether a benefit is being conferred under paragraph 246(1)(a), such a benefit would generally not be considered to be taxable income earned in Canada, as it would not be included under subsection 2(3) and Division D of Part I of the Act. ... Whether the amount of the benefit can be considered in computing the taxpayer’s taxable income earned in Canada for purposes of paragraph 246(1)(a) of the Act will depend, among other things, on the nature of the benefit being conferred. In the scenario provided, to the extent that only subsection 15(1) of the Act is relevant in the analysis as to whether a benefit is being conferred under paragraph 246(1)(a), such a benefit would generally not be considered to be taxable income earned in Canada, as it would generally not be included under subsection 2(3) and Division D of Part I of the Act. ...

15 June 2021 STEP Roundtable Q. 9, 2021-0883161C6- Safe Income Unedited CRA Tags 55(1), (2.1) and (5) Principal Issues: What non-deductible expenses will reduce the safe income that can reasonably be considered to contribute to the capital gain on a share Position: A general description of non-deductible expenses that the CRA considers will reduce the safe income that can reasonably be considered to contribute to the capital gain on a share is provided. Reasons: For the purposes of paragraph 55(2.1)(c) safe income is adjusted to take into account only the portion of safe income that can reasonably be considered to contribute to the capital gain on a share. 2021 STEP CRA Roundtable – June 15, 2021 QUESTION 9. ... CRA Response In this response “safe income” will be used to describe the income earned or realized after 1971 and before the applicable safe income determination time (as determined under paragraphs 55(5)(b) and (c) of the Act) and “safe income on hand” will be used to describe safe income that can reasonably be considered to contribute to the capital gain on a share. ...

Generally speaking, an estate is considered fully administered when the assets of the estate have been distributed and, if applicable, a clearance certificate is requested pursuant to section 116 or 159 of the Act. ... Since providing that answer, the Tax Court of Canada considered this issue in Hess 2011 TCC 360. ... The determination of when an estate would be considered administered is a matter of estate law. ...