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Before indicating that such proceeds would be added to the capital dividend account of the corporation as amounts received by it, CRA stated: A trustee can reasonably be considered to act as agent for a beneficiary when the trustee has no significant powers or responsibilities, the trustee can take no action without instructions from that beneficiary and the trustee's only function is to hold legal title to the property. In order for the trustee to be considered as the agent for all the beneficiaries of a trust, it would generally be necessary for the trust to consult and take instructions from each and every beneficiary with respect to all dealings with all of the trust property. ...

Similarly, fees paid for a fairness opinion obtained in connection with a proposed amalgamation of a corporation would be considered to be capital expenditures. ... Finally, merger costs can be considered as expenditures made once and for all, with a view to bringing into existence an advantage of enduring benefit for the business of the merging corporations and for the business of the corporation resulting from the merger. ...

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 concluded that the taxpayer would not have entered into the swaps if it had not acquired the US Operations. ... The Court did not consider the early termination of the derivative in these circumstances, to cause the derivatives to be considered speculative in nature. ...

11 June 2013 STEP Roundtable, 2013-0480321C6- 2013 STEP Question 6 US LLCs- FAPI, FAT and FTCs-- summary under Subsection 20(12) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(12) deduction for US tax on LLC income which also is FAPI Is the US tax paid by a Canadian-resident taxpayer on the income (which also is foreign accrual property income) of an LLC which is owned by it (and is a controlled foreign affiliate) considered to be foreign accrual tax in respect of the LLC? After responding that the US tax paid by the taxpayer would not qualify as FAT, CRA went on to note that any amount included under s. 91(1) in respect of the FAPI would be considered income from sources in the US for purposes of ss. 20(11) and 126(1), so that an individual taxpayer could deduct under s. 20(11) any portion of the US tax paid for the year in excess of 15% of the s. 91(1) income inclusion. ...

Thus, if in a particular taxation year the corporation has a capital gain that is considered to have a U.S. source (see paragraphs 1.62 to 1.65 of the… folio), the taxable portion thereof would be considered “income arising in the United States”…. ...

Furthermore, before the introduction of the… legislative changes… applicable to taxation years ending after March 20, 2013…the Craig decision…[indicated] that the factors to be considered in the context of the combination question were the capital invested in the farm and in the second source of income, the income earned from each of the two sources, the time devoted to the two sources of income and the ordinary mode of life of the taxpayer, the taxpayer's farming experience and the taxpayer's intentions and expectations. …. ... In the situation presented, all relevant factors should be considered…. ...

…[W]here a financial institution lends money on commercial terms to an individual that is a shareholder of a corporation, the corporation provides a security interest in its property to the lender, and such property can only be used in the event of default on the loan as a means of repaying amounts owing by the debtor under the lending agreement, then the security interest would not ordinarily be considered a “specified right”. 2. A security interest granted by a corporation to a creditor that may be used, in the event of default, to repay more than one debt owing by a shareholder of the corporation to that creditor would not, in and of itself, be considered to be a “specified right”. ...

14 September 2017 Roundtable, 2017-0703921C6- 2017 CPA Alberta Q25: Estates – Income Paid or Payable-- summary under Subsection 104(6) Summary Under Tax Topics- Income Tax Act- 101-110- Section 104- Subsection 104(6) income of fixed-interest trust is not per se payable IT-286R2, para. 6 states that the income of the trust for that year is considered to be payable to the beneficiaries where the sole reason for the rights of a beneficiary being unenforceable is the existence of an executor's year, the taxation year of a testamentary trust coincides with the executor’s year, and all of the beneficiaries agree to this treatment. ... In this regard, CRA indicated that the mere fact that the beneficiaries each had a fixed percentage entitlement to the net estate would not by itself result in the trust income being considered to be payable to them during the stub executor’s year. ...

(c)(i) of the public corporation definition at a time when Acquisitionco owns 100% of Targetco so that, following the amalgamation of Acquisitionco and Targetco, Amalco would not be considered to be a public corporation? ... Accordingly, in those situations where Amalco makes an election after the time that Targetco shares are delisted, Amalco will not be considered to be a public corporation. ...

Where the corporation has income from the provision of services and from income from non-services, the two should generally be computed separately, and the non-service income considered in determining if the requirement of the definition is met. However, where the non-service income was necessary for or incidental to the provision of the services themselves, all of the income would be considered to be services income. ...