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We are also of the view that the conversion provided for in Q.B.C.A. section 91 should not be considered as being made "in the course of a reorganization of the capital of a corporation". ...

3 May 2011 IFA Roundtable, 2011-0404511C6- 212(1)(d)(vi)-- summary under Subparagraph 212(1)(d)(vi) Summary Under Tax Topics- Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(vi) exemption extends beyond reproduction to performance rights In response to a question that noted that subsequent to the issuance on 19 September 1985 of a Special Release amendment to IT-303 which "generally concluded that the exemption in subparagraph 212(1)(d)(vi) was limited to payments which are considered under the Copyright Act of Canada to be in respect of a production or reproduction of a literary, dramatic, musical or artistic work" (see 13 June 2003 T.I. 2003-0018975 and 29 May 1998 Memorandum 973007), CRA stated: The Agency is currently following IT-303SR and at this time, pursuant to subparagraph 212(1)(d)(vi) of the Act, will not be reassessing to tax under Part XIII any payments in respect of a copyright of a literary, dramatic, musical or artistic work (unless it is payment that falls under subsection 212(5) of the Act). ...

" CRA also noted [TaxInterpretations translation] that although IT-64R4 indicates that the holding of a large debt is relevant to determining whether the holder has de facto control of the debtor: This factor nonetheless was considered of little importance in Technical Interpretation XXX where the debt represented virtually all the net value of a corporation but all its assets consisted of readily marketable securities which could serve to repay the debt held by an estate without imperiling its investment operations. ...

Respecting whether Targetco would be considered to have made an "excessive eligible dividend designation" under (c) of the definition, CRA stated (TaxInterpretations translation): In the situation described above, Targetco is the only corporation which will pay a dividend and whose GRIP will be reduced. ...

This approach appears to us to be further justified by the fact that the determination of the place of residence of a trust, although generally made at one time, may require that factors and factual elements relating to an extended period be considered. … [T]he fact that a person advises a trustee should not in itself generally alter the location of central management and control of the trust at the trustee level. ...

In this context, what is an "arrangement" and when is it can be considered to end? ...

Indeed, Opco could be considered to have conferred a benefit on Holdco under section 15(1) when the shares were issued. ...

In responding affirmatively, CRA stated: If the interest expense is not deductible by Borrower FA in any taxation year under the relevant foreign country's income tax law, it will nevertheless be deductible…pursuant to paragraph 5907(2)(j)… because it will be considered to have been made or incurred by Borrower FA for the purpose of gaining or producing earnings from an active business carried on by it as determined under subparagraphs (a)(i) or (ii) of the definition of "earnings" in subsection 5907(1)…. ...

In responding affirmatively, CRA stated: If the interest expense is not deductible by Borrower FA in any taxation year under the relevant foreign country's income tax law, it will nevertheless be deductible…pursuant to paragraph 5907(2)(j)… because it will be considered to have been made or incurred by Borrower FA for the purpose of gaining or producing earnings from an active business carried on by it as determined under subparagraphs (a)(i) or (ii) of the definition of "earnings" in subsection 5907(1)…. ...

Accordingly, in ruling requests on this type of transaction, considered in 2012, we refused to confirm that section 84.1 would not apply to deem employees to receive a dividend from a Buyco on the disposition of their Opco shares. ...