Search - contravene

It would be necessary to examine the particular terms, with respect to the holding and the surrender of the interests identical to the particular interest in a particular non-resident entity, to determine if these terms are such that they contravene the obligation of the non-resident entity to accept the surrender at the demand of the holders or the obligation of the holders to accept the surrender at the demand of the non-resident entity. ... It is possible, however, that following the examination of the particular terms in a given situation, we would accept that a relatively short minimum holding period would not contravene this obligation. ... On the other hand, if the terms provide, for example, that the interests will be surrendered on demand but that the determination of the redemption price and the date of payment of the redemption price will occur a certain time after the demand, this clause may not contravene the obligation to surrender on demand. ...

While we agree that the wording of paragraph 88(1)(d.2) makes it somewhat difficult to ascertain what the appropriate result should be in all circumstances, we are prepared, on a case-by-case basis, to continue to provide rulings on post-mortem "bump" transactions where all relevant facts are identified and the particular transactions in question do not, in our view, contravene our understanding of the current tax policy of the bump rules. ...

This contravenes one of the underlying principles in the taxation of capital gains regime, which is to prevent the indefinite deferral of tax on capital gains. ...

This contravenes one of the underlying principles in the taxation of capital gains regime, which is to prevent the indefinite deferral of tax on capital gains. ...

" Since the method proposed in document #9235160 takes into account the fair market value of the manufactured or processed goods, we are of the opinion that this method would not result in a portion of the non-resident's profit that is attributable to the manufacturing of the goods being taxed in Canada, nor would it contravene paragraph 4(1)(b) ITA. ...

In terms of the hypothetical situation mentioned above, although the facts submitted do not allow us to draw a definitive conclusion, it would seem that, insofar as the above scenario does not contravene applicable corporate or trust law, subsection 75(2) of the ITA would likely apply in such a case in order to attribute to the Corporation any revenue or loss resulting from the Trust's shares in the Corporation or property substituted for them, as well as any taxable capital gain or deductible capital loss from the disposition of the shares or any property substituted for them. ...

Further, these transactions contravene one of the underlying principles of the taxation of the capital gains regime which is to prevent the indefinite deferral of tax on capital gains and which is supported by subsections 70(5), 104(4) and 107(2). ...

In the CRA's opinion, would such a clause contravene the condition set forth in paragraph 70(6)(b)(ii) of the ITA in such a way that the trust would not qualify as a trust for the exclusive benefit of the spouse? ...

CRA Response Provided that the above scenario does not contravene the applicable corporate and trust laws, and that the common shares of Corporation Y held by Trust X have been received, directly or indirectly, from Corporation Y and are susceptible of reverting back to Corporation Y, subsection 75(2) ITA will apply so that any income or loss from the shares or from property substituted for the shares, or any taxable capital gain or deductible capital loss resulting from the disposition of the shares or of property substituted for the shares, will be deemed to be an income or loss, as the case may be, or a taxable capital gain or deductible capital loss, as the case may be, of Corporation Y. ...

In such a case, the potential transferee would be entitled to receive or otherwise obtain the use of any income or capital of the trust following such a transfer, which would contravene one of the conditions provided in subparagraph 73(1.01)(c)(ii) of the ITA. c) The previous answers would not be different, whether the sale of his beneficiary rights in the trust takes place immediately or five years after the transfer of the property to the trust. ...