Search - convention

Topic Descriptor 25 November 2021 CTF Roundtable Q. 1, 2021-0911841C6- Indemnities and subsection 87(4) Income Tax Act- Section 87- Subsection 87(4) payment of damages, for breach of reps, by the parent following a triangular amalgamation would not preclude satisfaction of s. 87(4) Income Tax Act- Section 84- Subsection 84(3) when escrowed shares are cancelled as compensation for breach of representations of the shareholders, the payment for s. 84(3) purpose is those shares’ FMV Income Tax Act- Section 87- Subsection 87(1) damages paid for breach of rep following an amalgamation did not breach s. 87(1)(a) 25 November 2021 CTF Roundtable Q. 2, 2021-0911831C6 Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(ww) s.20(1)(ww) deduction regarding s.15(2) inclusion subject to TOSI does not preclude subsequent s.20(1)(j) deduction Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(j) where a s. 15(2) inclusion that was offset under s. 20(1)(ww) because it was subject to TOSI, there nonetheless can be a s. 20(1)(j) deduction when the loan is repaid 25 November 2021 CTF Roundtable Q. 3, 2021-0912101C6- 86.1 exchange of shares Income Tax Act- Section 86.1- Subsection 86.1(2) s. 86.1 treatment is not available where a spin-off is structured as a share exchange transaction 25 November 2021 CTF Roundtable Q. 4, 2021-0912111C6- Liable To Tax & Territorial Taxation Treaties- Income Tax Conventions- Article 4 a Singapore corporation was a resident there for Treaty purposes – even though it was subject to tax on a territorial basis- provided its CMC was there 26 November 2021 CTF Roundtable Q. 5, 2021-0911821C6- Corporate Attribution Income Tax Act- Section 248- Subsection 248(1)- Specified Shareholder- Paragraph (e) beneficiaries of a discretionary trust were specified shareholders of a grandchild trust subsidiary Income Tax Act- Section 74.4- Subsection 74.4(2)- Paragraph 74.4(2)(a) minor beneficiaries of a discretionary trust were specified shareholders of a subsidiary of a corporation held by the trust Income Tax Act- Section 74.4- Subsection 74.4(4)- Paragraph 74.4(4)(a) s. 74.4(4)(a) exception does not apply where the indirect transfer is to a subsidiary of the trust-owned corporation 25 November 2021 CTF Roundtable Q. 6, 2021-0912011C6- Application of section 143.4 Income Tax Act- Section 143.4- Subsection 143.4(1)- Right to reduce CRA will entertain ruling requests to consider when a “right to reduce” arises under a Plan of Arrangement 25 November 2021 CTF Roundtable Q. 7, 2021-0911871C6- Sub-funds and TrackRules Sub 95(8) (12) Income Tax Act- Section 95- Subsection 95(11) one notional corporation for each sub-fund of an umbrella corporation 25 November 2021 CTF Roundtable Q. 8, 2021-0911881C6- ss 15(2) and FA rules Income Tax Act- Section 15- Subsection 15(2.1) there is no exclusion in s. 15(2.1) from the application of s. 15(2) to a loan from an FA to a partnership of FAs 25 November 2021 CTF Roundtable Q. 9, 2021-0911851C6- Work-Space-In-The-Home Expenses Income Tax Act- Section 8- Subsection 8(13) an employer does not certify on Form 2200 that employees’ home offices are the principal place of performing their duties 25 November 2021 CTF Roundtable Q. 10, 2021-0911861C6- Regulation 100(4)(a) and Payroll Deductions Income Tax Regulations- Regulation 100- Subsection 100(4)- Paragraph 100(4)(a) commencing to work remotely shifted the source deduction rates to those of the province of the payroll department 25 November 2021 CTF Roundtable Q. 11, 2021-0911941C6- 261(21), Loan to FA and Excluded Property Income Tax Act- Section 261- Subsection 261(20)- Paragraph 261(20)(b) s. 261(1) did not deny a loss that was deemed to be from excluded property rather than on FAPI account 25 November 2021 CTF Roundtable Q. 12, 2021-0912081C6- ITR Remissions and Fees Income Tax Act- Section 152- Subsection 152(1) overview of CRA rulings fees and fee remissions 25 November 2021 CTF Roundtable Q. 13, 2021-0912071C6- ITRD Internal Evaluation process Income Tax Act- Section 152- Subsection 152(1) review to reduce rulings and TI turnaround times 3 November 2021 CTF Roundtable Q. 14, 2021-0911951C6- Failure to properly file a T1135 Income Tax Act- Section 233.3- Subsection 233.3(1)- Specified Foreign Property- Paragraph (k) CRA will entertain penalty and interest waiver where taxpayer was misled by Form as to the narrowness of FA exclusion Income Tax Act- Section 95- Subsection 95(1)- Foreign Affiliate s. 95(1) FA definition is broader than under s. 233.4 25 November 2021 CTF Roundtable Q. 15, 2021-0911921C6- Curr Use & 95(2)(a)(ii)(B) & (D) Income Tax Act- Section 95- Subsection 95(2)- Paragraph 95(2)(a)- Subparagraph 95(2)(a)(ii)- Clause 95(2)(a)(ii)(D)- Subclause 95(2)(a)(ii)(D)(III) in light of the current-use test, borrowed money used to acquire shares that were not excluded property could satisfy s. 95(2)(a)(ii)(D) Income Tax Act- Section 95- Subsection 95(2)- Paragraph 95(2)(a)- Subparagraph 95(2)(a)(ii)- Clause 95(2)(a)(ii)(D)- Subclause 95(2)(a)(ii)(D)(I) acquisition of shares that were not excluded property qualified under current use test Income Tax Act- Section 95- Subsection 95(2)- Paragraph 95(2)(a)- Subparagraph 95(2)(a)(ii)- Clause 95(2)(a)(ii)(B) application of current use test under s. 20(1)(c) 25 November 2021 CTF Roundtable Q. 16, 2021-0911911C6- Convertible Debentures Income Tax Act- Section 212- Subsection 212(3)- Participating debt interest following Agnico-Eagle, CRA is reviewing whether the conversion of conventional convertible debentures gives rise to s. 214(7) interest ...

Topic Descriptor 7 October 2022 APFF Roundtable Q. 1, 2022-0942081C6 F- Safe Income Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) contingent liabilities that reduce shares’ FMV should also reduce safe income on hand 7 October 2022 APFF Roundtable Q. 2, 2022-0942091C6 F- Taxable preferred shares and shareholders’ agreement Income Tax Act- Section 248- Subsection 248(1)- Taxable Preferred Share- Paragraph (f)- Subparagraph (f)(ii) whether a right to a top-up in the event of an IPO is inconsistent with receiving FMV proceeds 7 October 2022 APFF Roundtable Q. 3, 2022-0942121C6 F- THRP- PRTA – Versement de dividendes imposables Income Tax Act- Section 125.7- Subsection 125.7(2.01) parent could pay a dividend in, say, Period 27, without adverse CEWS impact on Canadian sub Income Tax Act- Section 125.7- Subsection 125.7(14.1) there is no adverse CEWS impact of a non-resident parent paying dividends to individuals 7 October 2022 APFF Roundtable Q. 4, 2022-0942131C6 F Income Tax Regulations- Regulation 1101- Subsection 1101(5b.1) CRA is willing to adapt a prescribed requirement, that an election be made by letter attached to the return, to internet filings 7 October 2022 APFF Roundtable Q. 5, 2022-0947611C6 F- Limited Partnership and Loans Income Tax Act- Section 53- Subsection 53(2)- Paragraph 53(2)(c)- Subparagraph 53(2)(c)(v) guarded acceptance of distributions of LP profits as loans, followed by set-off against draws in January Income Tax Act- Section 40- Subsection 40(3.1) loans made only to avoid s. 40(3.1) gains due to income gains not being added to ACB until next year, may be acceptable 7 October 2022 APFF Roundtable Q. 6, 2022-0942141C6 F- Rollover under 70(6) and gifts to charities Income Tax Act- Section 70- Subsection 70(6)- Paragraph 70(6)(b)- Subparagraph 70(6)(b)(ii) charitable gifts by a spousal trust will disqualify it 7 October 2022 APFF Roundtable Q. 7, 2022-0942731C6 F- Permanent establishment and teleworking Treaties- Income Tax Conventions- Article 5 having an employee, with general authority to contract, telework from his cottage in another province does not necessarily create an employer PE there Income Tax Regulations- Regulation 102- Subsection 102(1) Reg. 400(2)(b) PE is not necessarily an employer establishment to which the employee reports to work Income Tax Regulations- Regulation 400- Subsection 400(2)- Paragraph 400(2)(b) employer is required to be carrying on business through an employee’s cottage to be considered to have a PE there under Reg. 400(2)(b) 7 October 2022 APFF Roundtable Q. 8, 2022-0942151C6 F- Surplus stripping Income Tax Act- Section 245- Subsection 245(2) permissible use of sale through subsidiary to avoid s. 84.1 Income Tax Act- Section 256- Subsection 256(5.11) range of factors considered Income Tax Act- Section 84.1- Subsection 84.1(1) incorporating a sub through which a share sale will occur so as to avoid s. 84.1 is not per se GAARable 7 October 2022 APFF Roundtable Q. 9, 2022-0942281C6 F- Section 80- proposals under BIA Income Tax Act- Section 80- Subsection 80(2)- Paragraph 80(2)(a) forgiveness under a Bankruptcy proposal occurred when it was court-approved Income Tax Act- Section 80- Subsection 80(13) s. 80(13) tax liability does not arise until the forgiveness 7 October 2022 APFF Roundtable Q. 10, 2022-0942161C6 F- Règles particulières sur les changements d’usage Income Tax Act- Section 45- Subsection 45(2) where s. 45(2) election is made on change to rental use, no change of use when the property changes back to actual personal use Income Tax Act- Section 45- Subsection 45(1)- Paragraph 45(1)(c) no change in the regular use under s. 45(1)(c) where a property regularly alternates between personal and rental use 7 October 2022 APFF Roundtable Q. 11, 2022-0942751C6 F- Changement de fin d'exercice et opposition Income Tax Act- Section 165- Subsection 165(3) CRA will not vacate an assessment that was not invalid or unfounded Income Tax Act- Section 249.1- Subsection 249.1(7) a corporation cannot change its year end by objecting to the 1st year’s initial assessment 7 October 2022 APFF Roundtable Q. 12, 2022-0950691C6 F- Revenu de location- DPE Income Tax Act- Section 248- Subsection 248(1)- Property building treated as a single property for purposes of principal use test Income Tax Act- Section 129- Subsection 129(4)- Income or Loss rental income from the smaller portion of a building not used in manufacturing could be assimilated to active business income 7 October 2022 APFF Roundtable Q. 13, 2022-0942181C6 F- Transfer of an RRSP at death Income Tax Act- Section 248- Subsection 248(23.1)- Paragraph 248(23.1)(a) s. 248(23.1)(a) does not deem the amount paid to be received as beneficiary of the estate as per s. 146(8.1) Income Tax Act- Section 146- Subsection 146(8.1) an amount paid by an estate of the deceased’s RRSP to satisfy the claim of his separated surviving spouse did not qualify as a refund of premiums 7 October 2022 APFF Roundtable Q. 14, 2022-0942191C6 F- Safe-income determination time Income Tax Act- Section 248- Subsection 248(10) safe income arising on a sale and after the safe-income determination time could be used for subsequent dividends not paid as part of the same series Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(b) no need for CRA flexibility regarding safe income issues arising from early formation of a Buyco Income Tax Act- Section 55- Subsection 55(1)- Safe Income Determination Time incorporation of Buyco may trigger safe-income determination time 7 October 2022 APFF Roundtable Q. 15, 2022-0942241C6 F- Safe income inclusion of dividend tax refund Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) taxes reduce safe income attributable to realized taxable capital gain net of the refundable tax generated from dividend Neal Armstrong. 7 October 2022 APFF Roundtable. ...