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7 October 2022 APFF Financial Strategies and Instruments Roundtable Q. 9, 2022-0940951C6 F- FRB créée par testament après 2015-- summary under Paragraph 118.1(5)(b) Summary Under Tax Topics- Income Tax Act- Section 118.1- Subsection 118.1(5)- Paragraph 118.1(5)(b) gift of capital interest in charitable remainder trust is considered to be made by GRE when such interest vests in the charity CRA confirmed that where an individual has by will made a gift to a qualified donee of the capital interest in a charitable remainder trust (“CRT”), such capital interest is not considered for purposes of s. 118.1(5.1) to have been acquired by the graduated rate estate (“GRE”) on or as a consequence of the individual's death, so that s. 118.1(5.1) is unavailable to permit a donation credit to be claimed in the T1 return of the deceased for the year of death or the preceding year, and so that it is only the GRE which will be able to claim such credit for the taxation year in which the gift is in fact made or for any of the five subsequent taxation years pursuant to s. 118.1(1)(c)(ii)(A). ... Consequently, the GRE could be considered to have made a gift of the capital interest in the CRT to the qualified donee at the time the CRT is created by GRE and the capital interest vests in the qualified donee, provided that all of the conditions set out in paragraph 2 of IT-226R are satisfied. ...

After noting that, under the Quebec Civil Code, a landlord may not make non-emergency improvements or major repairs requiring the temporary evacuation of the housing unit without offering the tenant compensation equal to the reasonable expenses incurred by the tenant as a result of the evacuation, CRA stated, regarding whether the compensation payment would be a capital expenditure: [I]f the purpose of the work was to improve the housing unit for the purpose of the resale of the duplex, that purpose in itself could be considered a dominant factor that would lead to the conclusion that the payment of the compensation was a capital expenditure. However, in a context where the landlord pays compensation to his tenant because of his obligations under the Civil Code of Québec, this element could then be considered dominant and the compensation could be considered a current expense. ...

21 May 2009 IFA Roundtable Q. 1, 2009-0321451C6- Meaning of beneficial owner in Article 10, 11 & 12-- summary under Article 10 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 10 In the Prévost Car case, "the Court implied that where an intermediary acts as a mere conduit or funnel in respect of an item of income, the intermediary would not have sufficient economic entitlement to the income to be considered the 'beneficial owner'. The CRA will examine future back-to-back dividend, interest and royalty cases that have encounters with a view to whether an intermediary could, on the facts, be considered a mere conduit or funnel". ...

21 May 2009 IFA Roundtable Q. 1, 2009-0321451C6- Meaning of beneficial owner in Article 10, 11 & 12-- summary under Article 11 Summary Under Tax Topics- Treaties- Income Tax Conventions- Article 11 In the Prévost Car case, "the Court implied that where an intermediary acts as a mere conduit or funnel in respect of an item of income, the intermediary would not have sufficient economic entitlement to the income to be considered the 'beneficial owner'. The CRA will examine future back-to-back dividend, interest and royalty cases that have encounters with a view to whether an intermediary could, on the facts, be considered a mere conduit or funnel". ...

8 May 2012 CALU Roundtable Q. 6, 2012-043564-- summary under Capital Dividend Account Summary Under Tax Topics- Income Tax Act- Section 89- Subsection 89(1)- Capital Dividend Account On the same facts as for Q. 6.1 above except that the insurance policy names the Insurance Trustee as the beneficiary of the policy, for example, "as beneficiary in trust as bare trustee for the Corporation"- or simply names the Insurance Trustee without specific reference to its capacity as a bare trustee or agent, CRA stated: if the Insurance Trustee can reasonably be considered to act as agent for its sole beneficiary Corporation A such that the arrangement is deemed not to be a trust for the purposes of the Act, Corporation A would generally be considered to have received insurance proceeds for purposes of its capital dividend account. ...

8 May 2012 CALU Roundtable Q. 6, 2012-043564-- summary under Capital Dividend Account Summary Under Tax Topics- Income Tax Act- Section 89- Subsection 89(1)- Capital Dividend Account On the same facts as for Q. 6.1 above except that the buy-sell agreement gives an irrevocable direction to the insurer to pay the proceeds over to the Insurance Trustee upon the death of a shareholder, CRA stated: if the Insurance Trustee can reasonably be considered to act as agent for its sole beneficiary Corporation A such that the arrangement is deemed not to be a trust for the purposes of the Act, Corporation A may generally be considered to have received insurance proceeds for purposes of its capital dividend account provided that the irrevocable direction given by Corporation A to the insurer would not in any way negate the agency relationship between Corporation A and the Insurance Trustee. ...

Can such withholdings be considered foreign income taxes in their entirety? ... From a Canadian point of view, this excess amount would be considered as a "voluntary tax". ...

5 October 2012 APFF Roundtable, 2012-0453211C6 F- Formulaire T1135-- summary under Subsection 162(7) Summary Under Tax Topics- Income Tax Act- Section 162- Subsection 162(7) CRA is not bound by Douglas In response to a query respecting the Douglas decision, and as to whether CRA has considered providing administrative relief from the penalty outside the voluntary disclosure program, CRA stated (TaxInterpretations translation): 1. The CRA has considered the Douglas decision. However, that case proceeded under the informal procedure and on that basis, the CRA is not bound by that decision. 2. ...

Is the resulting additional deemed dividend considered to have arisen in 2006 or 2011? ... Furthermore, and for the purposes of subsection 129(1), the dividend would be considered to have been paid by the payer in the taxation year in which the additional payment was actually made. ...

Is the deceased's estate considered to be a contributor to the child's trust or is the only contributor the deceased himself? ... Accordingly, the deceased's estate will be considered to be a contributor to the child's trust. ...