Search - considered

Position Adoptée: Will have to determine what portion of the safe income can reasonably be considered to contribute to the capital gain of the share on which the dividend is received. ...

X, subsection 74.4(2) could apply if one of the main purposes of the transfer may reasonably be considered to be to reduce the income of Mr. ...

The application of paragraph (f) of the definition of disposition in subsection 248(1) or subsection 107.4(3) can be considered. ...

It is important to note that when an amount of income has become payable to a beneficiary, subsection 104(24) of the Act must be considered. ...

If a trust was created by the contribution of jointly-owned property by an individual and the individual’s spouse or common-law partner and no other person, the trust would be considered to be created by both individuals for purposes of subsection 73(1.01). ...

Reasons: Since any gain of FA that would be derived from the settlement of the Parent-FA Loan would be deemed to be a gain from the disposition of an excluded property and FA does not have, in the scenario provided, any Canadian tax results, and therefore has no tax reporting currency during the accrual period, Parent and FA are not considered to have different tax reporting currencies for the purposes of paragraph 261(20)(b). ...

Thus, a right may be considered a “right to reduce,” if it is reasonable to conclude, having regard to all the circumstances, that the right will become “capable of being made effective in action” or “capable of being implemented.” […] It is our view, based on the information provided, that the Taxpayer’s right to reduce the Interest Debt is contingent upon a series of conditions that are set out in the Plan, including the Conditions Precedent, and that it falls within the definition of a “right to reduce” in subsection 143.4(1) because it is reasonable to conclude, having regard to all the circumstances, that the right will become exercisable. ...

CALU Roundtable- May 2022 Question 7 – Life insurance shares Background The CRA has previously considered life insurance shares in the context of determining how the cash surrender value (CSV) of a corporate-owned life insurance policy is allocated between various classes of shares including life insurance shares, for the purposes of subsection 70(5.3) of the Income Tax Act (the “Act”) on the death of a shareholder. ...

The SCC considered a matter central to the CRA’s ongoing efforts to protect Canada’s tax base and the integrity of its tax treaties. ...

For instance, in Rezek et al v The Queen et al (2005 FCA 227), the Federal Court of Appeal opined (in paragraphs 113–115) that where an election is required to be filed in the taxpayer’s return of income for the year, such an election would not be considered late-filed if the election was filed with a return of income for that year that was late-filed. ...