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Respecting the second question, it stated: [D]epending on the facts of the situation, a realized foreign exchange gain or loss arising from an entity’s ordinary activities in Canada, that is determined in accordance with the entity’s normal accounting practice, may be considered qualifying revenue for the entity. ...

However, planning contemplating the payment of an unreasonable amount of salary, particularly in circumstances similar to those described in [this] scenario … could be considered abusive,... ...

Failure to disclose to the CRA the terms or existence of a counter letter could be considered neglect, carelessness, wilful default, or fraud, and the CRA could assess at any time pursuant to subparagraph 152(4)(a)(i). ...

. … Thus, Child A's subscription for shares of the capital stock of Opco with the proceeds of the capital dividend received from Opco (through the Trust) would not be considered an arm’s length capital contribution …. ...

In particular having regard to the CRA view that “to be a right or thing [under s. 70(2)] … the individual would have to be legally entitled to receive the amount at the time of the individual’s death (the right would have to exist)” CRA considered that even though an individual annuitant who died part way through the year was allocated the income that had been earned in the year up to the time of death on the T3 slip received by his executors, he had no legal entitlement to the allocated amounts. ...

17 May 2022 IFA Roundtable Q. 12, 2022-0926361C6- Principal Purpose Test (PPT)-- summary under Subsection 245(4) Summary Under Tax Topics- Income Tax Act- Section 245- Subsection 245(4) PPT approach can inform GAAR analysis Regarding Alta Energy, CRA stated: The SCC considered a matter central to the CRA’s ongoing efforts to protect Canada’s tax base and the integrity of its tax treaties. ...

Consequently, safe income on hand of a corporation must generally be reduced by actual or potential cash outflows, such as non-deductible expenses, contingencies and accounting reserves, in determining the amount of safe income that can be considered to contribute to the gain on a share. ...

In rejecting the suggestion that classification of a qualifying non-residential building in a separate Class 1(a) or 1(b) on its return was sufficient for the taxpayer to be considered to have made the election, CRA stated that the text of Reg. 1101(5b.1) stated otherwise, and that the “taxpayer must, therefore, send to the Tax Centre serving the taxpayer a letter attached to the taxpayer's income tax return stating the taxpayer's election for each eligible non-residential building for the taxation year in which the subject building is acquired.” ...

7 October 2022 APFF Roundtable Q. 8, 2022-0942151C6 F- Surplus stripping-- summary under Subsection 256(5.11) Summary Under Tax Topics- Income Tax Act- Section 256- Subsection 256(5.11) range of factors considered A corporation (Brother-Portfolioco) owned by an individual (Brother) sells a 50% shareholding in Opco to a corporation (Sister-Holdco) owned by Brother’s sister (Sister) – but with a capital gains reserve being claimed because most of the sales proceeds are deferred. ...

CRA responded: In the context of a situation as described in the question and to the extent that it is reasonable to consider that the DR contributes to the hypothetical capital gain in respect of the shares on which the dividend was received (assuming a disposition at FMV of the shares immediately prior to the dividend), the CRA would be willing to take the position that the DR receivable is to be considered in computing income earned or realized as of December 1. ...