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The main question to be asked is whether a payment to settle indemnities for representations, warranties, etc., in a M&A type of transaction can be considered as payment for the settlement of such indemnities or proceeds of disposition of shares being disposed of in such transaction. ... However, as discussed above, the payment of an indemnity quite some time after the amalgamation regarding bona fide representations and warranties would normally not be considered to be consideration received for the disposition of shares of a predecessor corporation, depending on specific facts and circumstances. 2. ... Therefore, the amount considered to be paid for the repurchased shares under subsection 84(3) should be equal to the amount of settlement for the indemnity claim. ...

(3) If there are multiple businesses being carried on by several different corporations, would this condition be met if an individual is only considered to be actively engaged on a regular, continuous and substantial basis in one of the businesses? ... It is considered to be one of the hallmarks indicative of a genuine intergenerational business transfer. ... Accordingly, any previous engagement or involvement by an individual prior to the disposition of the subject shares by the parent to the purchaser corporation would not be considered in determining whether the condition in proposed subparagraph 84.1(2.31)(f)(ii) or 84.1(2.32)(g)(ii), as the case may be, is met. ...

(GWL) case (footnote 1), which considered the income or capital characterization of the taxpayer's gains on foreign currency derivatives. ... While the decision affirmed that there are circumstances in which a foreign currency derivative can be considered a hedge of a taxpayer's net investments in foreign operations there must, however, be evidence that demonstrates that the derivative is sufficiently linked to the underlying capital assets. ... The Court did not consider the early termination of the derivative in these circumstances, to cause the derivatives to be considered speculative in nature. ...

Position: No, if the share is considered to be a "non-qualifying security" ("NQS") as defined in subsection 118.1(18) of the Act. ... Thus, in applying the rules in respect of gifting under the Act, the taxpayer that will be considered to have made the gift will be the deceased's estate. ... Hence, in the given situation, assuming the Public Foundation is a beneficiary of the estate, it will be considered to be beneficially interested in the estate pursuant to subsection 248(25) of the Act. ...

The amount deductible is the amount that the taxpayer can demonstrate can reasonably be considered to have been deductible by the taxpayer pursuant to paragraph 113(1)(a) in respect of the exempt surplus of a foreign affiliate of the taxpayer at the lending time, assuming that the amount lent was instead paid by the creditor affiliate or partnership as a dividend. ... The time that the dividend assumed by paragraph 90(9)(a) is considered to be paid by the creditor foreign affiliate and received (either directly or indirectly) by the taxpayer, is the "lending time", which is defined in that paragraph as the time the loan or debt which gave rise to the subsection (6) or (12) income inclusion was made or incurred. ... In the context of the paragraph 90(9)(a) assumed dividend considered in your example, even were paragraph 5901(2)(a) applicable to a real series of dividends paid up the chain of affiliates at that time such that a deduction would be available to Parent under paragraph 113(1)(a) in respect of the real dividend received by it, we would not consider that deduction to be in respect of the exempt surplus of any foreign affiliate of Parent at the lending time. ...

Position: No Reasons: Where a recipient is under 65 years of age and is not receiving the amount as a consequence of the death of their spouse or common-law partner, the payment in respect of an annuity from the locked-in account is not considered "qualified pension income". ... Question Given the requirements imposed on LRIFs and LIFs, where payments are structured in a manner similar to a life annuity, and the funds are derived exclusively from a transfer of funds from a registered pension plan and the locking-in requirements are governed under applicable pension legislation, CALU is of the view that such payments should be considered payments in respect of a life annuity out of or under a superannuation or pension plan. ... We are also of the view that the stream of income payable from a LRIF or LIF would not be considered a life annuity, as the annual payments are determined each and every year by reference to the current fair market value of the property of the LRIF or LIF, and the annuitant has discretion to select the total payments to be made each year within the range permitted by the applicable income tax and pension rules. ...

It is our general view that an employee will be considered to have received an economic benefit when the employee is reimbursed, in whole or in part, for the purchase of an asset, including a computer, of which the employee retains ownership, notwithstanding that the particular asset is used for employment-related purposes. The employee is considered to have received an economic benefit from the employer, as the employee's net purchase cost of the computer owned by the employee is less than it would otherwise have been. ... However, if ownership of the computer is transferred to the employer upon reimbursement, then it is our view that where the computer is used for employment-related purposes, with only incidental personal use by the employee, an economic benefit would not be considered to arise. ...

The CRA has previously stated (Document No. 9826715) that where the policy is transferred to a trust of which the child is the beneficiary, the transfer would not be considered a transfer to the child. ... The result would be that the transfer would be considered to be a disposition of the policy at its value at the time of transfer and the difference between the proceeds of disposition and the ACB of the policy would be taxable to the transferor if the transfer is subject to subsection 148(7). ... People are considered to be mentally incapable of managing property if they cannot understand the relevant information or appreciate what may happen as a result of decisions they make, or do not make, about their finances. ...

Similar tax planning may also be considered where shares are held in an alter ego trust, a spousal trust, or a joint spousal or common-law partner trust. ... CRA has considered the application of these provisions in the past in situations similar to those described above. In each of the situations where we have ruled favourably, the particular transactions in question did not violate our understanding of the underlying tax policy of the bump rules at the time such transactions were undertaken, such that the particular parent corporation was considered to have "last acquired control" of the particular subsidiary corporation for the purposes of paragraphs 88(1)(c), (d) and (d.2) at the time immediately after the particular individual's death. ...

29 May 2018 STEP Roundtable Q. 2, 2018-0744101C6- Creation of a Trust Unedited CRA Tags 104(4), 108(1) "testamentary trust", 104(5.8) Principal Issues: When is a testamentary trust considered to have been created for purposes of the deemed disposition in paragraph 104(4)(b)? ... CRA Response The question of the creation date of a testamentary trust has been considered in past STEP Roundtables (footnote 1). ... It is ultimately a question of fact as to when a trust is considered to be established and there may be situations where the creation date of a testamentary trust is not concurrent with the testator’s date of death. ...