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Reasons: The shareholder discharges its debt by a payment in kind (the QBIC shares) the value of which is the value of the debt considered paid in full. ...

7 October 2021 APFF Financial Strategies and Instruments Roundtable Q. 1, 2021-0899661C6- Application of paragraph 20(1)(bb) Unedited CRA Tags Paragraph 20(1)(bb) Principal Issues: 1) How does the CRA interpret the term “commission” in paragraph 20(1)(bb) and what factors are to be considered in determining whether a payment made to a broker is a “commission”? ...

The OECD Guidelines state that the issue must be considered from the point of view of both the supplier and the recipient of the service. ... Where the CUP method cannot be applied, the cost plus method should be considered. ... Where based on its attributes a LLC is considered to be a corporation, the LLC is considered to have a legal personality and existence that is distinct from the persons who caused its creation or who own it. ...

PowerPoint Slides English slides French slides Rough Transcript (for search engine visibility) TOSI FOR ADULTS CRA Presentation to CPA Canada AGENDA Legislative History Basics of old Section 120.4 Overview of Amendments to Section 120.4 New Exclusions from TOSI: Safe Harbours & Other Excluded Amounts Key Changes Interpretive Issues 2017 Guidance Conference Positions Compliance Matters Disclaimer The material is for informational purposes only and should not be considered tax advice. Any amendments to the law or relevant court decisions occurring after the publication date will not have been considered in the preparation of the information unless otherwise specified. ...

In the appendices, the following is provided: an overview of U.S. estate tax (Appendix A), a discussion of paragraphs 1, 2, 3 and 4 of Article XXIX B (Appendix B), some examples of U.S. situs property and property not considered to be situated in the U.S. ... Income which may otherwise be considered U.S. source but which the U.S. does not have right to tax under the Convention is not included. ... " 22 It appears that options on such stock are also considered to be U.S. situs property. ...

In the past, the CRA has generally considered the cash surrender value (CSV) of an insurance policy as being "cash or near cash" property. ...

However, where it is apparent at the time the loan is made that the corporation receiving the funds will not be in a position to repay the loan or to provide reasonable security for repayment, the shareholder who has directed the payment may be considered to have deliberately and permanently removed value from the corporation. ...

Position Adoptée: a) and d) Under paragraph 12(1)(x), the forgivable portion of the loan is included in the income of the debtor in the taxation year in which the loan is received; b) The forgivable portion of the loan would be received from a person described in subparagraph 12(1)(x)(i), assuming the requirements of clause 12(1)(x)(i)(A), (B) or (C) are met; c) It could reasonably be considered that the forgivable portion of the loan has been received as assistance as a forgivable loan in respect of an outlay or expense pursuant to subparagraph 12(1)(x)(iv); e)(i) The forgivable portion of the loan would be included in the income of the corporation in its taxation year ended December 31, 2020; e)(ii) The corporation could avoid the income inclusion under paragraph 12(1)(x) by filing the election under subsection 12(2.2) with its income tax return for its 2020 taxation year to reduce the amount of allowable non-deferrable operation expenses incurred in that year; e)(iii) The corporation could avoid the income inclusion under paragraph 12(1)(x) in its 2020 taxation year by filing the election under subsection 12(2.2) with its income tax return for its 2021 taxation year to reduce the amount of allowable non-deferrable operation expenses incurred in that year; e)(iv) Where the intent of the parties is that any amount reimbursed by the corporation will be applied first in repayment of the portion of the loan that was initially forgivable, the corporation could claim a deduction under paragraph 20(1)(hh) with respect to the amount reimbursed in the taxation year in which the reimbursement is made, up to the amount included in its income pursuant to paragraph 12(1)(x). ...

In the case of a common-law partnership, the taxpayer would not be considered to have a common-law partner in applying the first-time homebuyer condition. 2) In the case of either a marriage or common-law partnership, subsection 146.01(2.1) provides relief from the first-time homebuyer condition. ...

(2) Whether a corporate beneficiary receiving an interest in a life insurance policy from a trust as payment of a dividend in kind received by the trust should be considered as having given a consideration for the interest in the life insurance policy? ...