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15 May 2019 IFA Roundtable Q. 6, 2019-0798861C6- Non-resident filing income tax return-- summary under Paragraph 150(5)(b) Summary Under Tax Topics- Income Tax Act- Section 150- Subsection 150(5)- Paragraph 150(5)(b) non-resident partners of a partnership that has disposed of TCP must file Part I returns even if a s. 116 certificate indicates that all Part I tax is paid Where a s. 116 certificate is issued respecting a disposition of taxable Canadian property (that is not treaty-protected property) by a partnership with numerous non-resident partners, and all Canadian taxes owing on the resulting taxable capital gain have been paid, is no Part I tax considered to be payable by the non-residents for the purposes of s. 150(5)(b), such that the disposition will be an “excluded disposition”? ...

Where a s. 116 certificate is issued respecting a disposition of taxable Canadian property (that is not treaty-protected property) by a partnership with numerous non-resident partners, and all Canadian taxes owing on the resulting taxable capital gain have been paid, is no Part I tax considered to be payable by the non-residents for the purposes of s. 150(5)(b), such that the disposition will be an “excluded disposition”? ...

To the extent that only s. 15(1) is relevant in the analysis of the s. 246(1)(a) benefit being conferred, such a benefit generally would not be considered taxable income earned in Canada, as it would generally not be included under s. 2(3) or Division D. ...

To the extent that this denial is not considered appropriate in the circumstances, the taxpayer may request special relief through the CRA competent authority under Art. ...

14 May 2019 CLHIA Roundtable Q. 2, 2019-0799051C6- 2019 CLHIA Roundtable- 148(7) questions-- summary under Paragraph 6(1)(a) Summary Under Tax Topics- Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) s. 6(1)(a) applied to transfer of life insurance policy to employee at an undervalue, notwithstanding the application of s. 148(7) As a result of an arm's length employee B no longer being considered to be a key employee, her employer (Corporation A) transfers its “key person” permanent life insurance policy on her life to her for nominal consideration. ...

14 May 2019 CLHIA Roundtable Q. 2, 2019-0799051C6- 2019 CLHIA Roundtable- 148(7) questions-- summary under Paragraph 148(7)(b) Summary Under Tax Topics- Income Tax Act- Section 148- Subsection 148(7)- Paragraph 148(7)(b) cost of policy gratuitously transferred to arm's length employee determined under s. 148(7)(b) rather than s. 52(1) As a result of employee B no longer being considered to be a key employee, her employer (Corporation A) transfers its “key person” permanent life insurance policy on her life to her for nominal consideration. ...

In this similar interpretation, CRA noted that the comments in that paragraph considered what would happen hypothetically “in the absence of s. 94(5),” and that such conclusions were, of course, not applicable to the actual state of the law. ...

Alternatively, to the extent that the beneficiary was able to enforce payment of the income earned within the estate, there would be no income taxable in the estate, as it would all be considered to be payable to the beneficiary under s. 104(13), consistently with s. 104(24). ...

CRA found that, given that Monsieur was no longer considered to be her spouse at the time of her withdrawal from her RRSP, she was eligible for HBP treatment provided the other conditions were satisfied, stating: [S]ince Madame does not have a spouse or common-law partner at the time of the withdrawal of an amount from her RRSP, being in July 2019, the condition set out in paragraph (f) of the definition "regular eligible amount" in subsection 146.01(1) would not be applicable. ...

CRA stated that “the principal question is whether the payment is made as a consequence of the individual's death” and, in addition to referencing the s. 248(8)(b) rule, noted that “paragraph 248(8)(a) provides, in particular, that a transfer … of property made … as a consequence of [the taxpayer’s] will is considered to be a transfer … made as a consequence of the death of the taxpayer.” ...