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27 February 2020 CBA Roundtable, Q.24-- summary under Subsection 240(1) Summary Under Tax Topics- Excise Tax Act- Section 240- Subsection 240(1) non-resident lessor of equipment delivered in Canada is carrying on business in Canada even if the leased equipment is immediately exported Example 1 in Policy Statement P-051R2 indicates that a non-resident lessor (with a leasing business outside Canada) is considered to be carrying on business in Canada by virtue of a sale-leaseback transaction under which it purchases a vehicle from a resident registrant, with delivery under the sale agreement and under the lease-back to the resident (who will use the conveyance partly in Canada) occurring in Canada, notwithstanding no other significant connecting factors to Canada. ...

CRA found that the registrant was entitled to a full ITC on the acquisition pursuant to s. 202(2) on the basis that the personal use of the passenger vehicle by the employee was to be “considered, in the case at hand, to form part of the registrant's commercial activity by virtue of subsection 173(1)(d) … thereby making the total use of the property exclusively in commercial activity (i.e., 80% commercial activity plus 20% deemed commercial activity), the registrant.” ...

This view has permitted investment funds to redeem their securities once a year based on their NAV and still be considered non-redeemable investment funds. ...

Provided a charity ensures it retains authority on the use of its resources, it will not be considered to be engaged in directed giving. 76. ...

If you are not a citizen or a permanent resident of Canada and your primary place of residence is outside Canada, any residential property that you own in Canada is generally considered to be a secondary place of residence, unless you can prove otherwise. ...

Partly, on this basis, CRA considered that the relevant self-supply rule was that in s. 19(1) applicable to the substantial renovation (or construction) of a residential condominium unit rather than that applicable under s. 191(3) to the substantial renovation (or construction) of a multiple unit residential complex. ...

Underused Housing Tax Notice UHTN15, Questions and Answers About the Underused Housing Tax, 17 April 2023-- summary under Residential Property Summary Under Tax Topics- Other Legislation/Constitution- Federal- Underused Housing Tax Act- Section 2- Residential Property Focus on purpose of construction (para. 1.25) Commercial cottages, cabins and chalets situated on one lot are not considered to be residential properties- they “were purposely constructed or converted to be something other than a residence.” ...

We considered adding “avoidance of foreign tax” to the test, but ultimately concluded that adjusting the avoidance transaction test to “one of the main purposes” would ensure a better balance. ...

CRA responded: Where a building (or other structure) is being erected by or for a taxpayer on land owned by the taxpayer, they are considered to have acquired a building (or other structure), at any particular time, to the extent of: the construction costs incurred by the taxpayer to that time, including the cost to the taxpayer of materials that have been put in place, but not including holdbacks that constitute a conditional liability (for example, a holdback which requires that the work be approved by the taxpayer’s architect or engineer before payment), or progress billings received by the taxpayer to that time, net of any holdbacks that constitute a conditional liability. ...

If the loan is considered received because of shareholdings, the [exempting] CRA administrative policy does not apply. ...