Search - convention

20 August 2008 External T.I. 2008-0288561E5 F- Convention de partage d'une société de personnes-- summary under Subparagraph 53(2)(c)(v) Summary Under Tax Topics- Income Tax Act- Section 53- Subsection 53(2)- Paragraph 53(2)(c)- Subparagraph 53(2)(c)(v) payment to a retired partner in excess of partnership income is treated as a constructive withdrawal of capital by the other partners, reducing their ACB The partnership agreement for a services partnership provides that a partner who has withdrawn will be paid over five years an amount respecting work-in-progress and paid at a formula-based rate over five years, with the parties agreeing that such amounts are paid as income allocations under s. 96(1.1). ...

4 October 2010 External T.I. 2010-0367231E5 F- Convention de partage d'une société de personnes-- summary under Subsection 103(1.1) Summary Under Tax Topics- Income Tax Act- 101-110- Section 103- Subsection 103(1.1) s. 103(1) or (1.1) could apply to allocation of ordinary income and capital gains on substantially different basis between couple and their corporation A couple (Mr. and Mrs. ...

29 May 2007 Internal T.I. 2006-0217401I7 F- 110(1)d): Moment de la conclusion de la convention-- summary under Clause 110(1)(d)(ii)(A) Summary Under Tax Topics- Income Tax Act- 101-110- Section 110- Subsection 110(1)- Paragraph 110(1)(d)- Subparagraph 110(1)(d)(ii)- Clause 110(1)(d)(ii)(A) where options previously granted were not exercisable until an employer “Exercise Notice,” the stock option agreement was made at such notice time Employees of Opco (Participants”) were granted stock options by Opco pursuant to “Grant Agreements” which specified the number of Options granted and their exercise price (which equaled the FMV of the subject shares at the time of such grant), but provided that such Options were not exercisable (and could not be surrendered to Opco for their cash surrender value) until the compensation committee of Opco had issued an “Exercise Notice” to the Participant. ...

6 October 2006 Roundtable, 2006-0197151C6 F- Acquisition selon convention entre actionnaires-- summary under Paragraph 248(8)(a) Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(8)- Paragraph 248(8)(a) children exercising right in shareholders’ agreement to acquire shares on father's death would not be a consequence of his death, cf. if pursuant to his will A shareholders' agreement gives children the right to acquire the shares of a farm corporation for $1 after their father's death. ...

4 January 2006 Internal T.I. 2005-0115801I7 F- Convention de retraite-- summary under Paragraph 20(1)(r) Summary Under Tax Topics- Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(r) excessive benefits would have resulted in denial under ss. 18(1)(o.2) and 20(1)(r) had the arrangement qualified as an RCA A closely-held corporation that was dividending out all the profits of its business also established a purported retirement compensation arrangement (RCA) trust for two employees who, indirectly, were the corporation’s two shareholders, and made contributions to the trust that were funded by loans from the trust. ...

4 January 2006 Internal T.I. 2005-0115801I7 F- Convention de retraite-- summary under Section 67 Summary Under Tax Topics- Income Tax Act- Section 67 Petro-Canada applied re determining reasonableness A closely-held corporation that was dividending out all the profits of its business also established a purported retirement compensation arrangement (RCA) trust for two employees who, indirectly, were the corporation’s two shareholders, and made contributions to the trust that were funded by loans from the trust. ...

10 October 2003 Roundtable, 2003-0037145 F- CONVENTION DE RETRAITE-- summary under Paragraph 207.6(2)(d) Summary Under Tax Topics- Income Tax Act- Section 207.6- Subsection 207.6(2)- Paragraph 207.6(2)(d) deemed withdrawals from RCA through payment of insurance benefits not subject to tax under para. ...

4 November 2003 External T.I. 2003-0042295 F- CONVENTION DE RETRAITE REVENU D'INTERET-- summary under Paragraph (b) Summary Under Tax Topics- Income Tax Act- Section 207.5- Subsection 207.5(1)- Refundable Tax- Paragraph (b) requirement to include interest income under s. 12 in computing refundable tax at end of year Is an RCA trust subject to the provisions of s. 12 in determining its refundable tax under Part XI.3? ...

24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Paragraph 56(1)(x) Summary Under Tax Topics- Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(x) Part XI.3 tax and s. 56(1)(x) income inclusion apply even where RCA contribution is partially or fully non-deductible Are contributions by a corporation to an RCA deductible in computing its income where the contributions relate to services rendered by a shareholder-employee while self-employed and before the corporation’s incorporation, and can the RCA be funded when such contributions are not deductible to the employer? ...

24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé-- summary under Salary Deferral Arrangement Summary Under Tax Topics- Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement a significant reduction in bonus or salary matched by an RCA contribution likely suggests it instead is an SDA After noting that contributions by a corporation to an RCA would not be deductible in computing its income where the contributions related to services rendered by a shareholder-employee while self-employed and before the corporation’s incorporation, or to the extent that s. 67 applied, CRA turned to the question whether there would be an SDA if the corporation regularly reduced bonuses to a shareholder-employee by the amount of related contributions to the employee RCA for its employees, and stated: Where a plan or arrangement can qualify as both an RCA and an SDA, it will be treated as an SDA …. … [I]t can be assumed that, except in special circumstances, where a portion of an employee's salary or wages is deferred under an agreement, one of the main purposes is to defer the payment of taxes. … [W]here a significant portion of the salary or bonus to which a shareholder-employee is entitled for services rendered is reduced so as to be contributed to an RCA instead, the existence of the RCA could be questioned since the contribution made by the employer may not relate to benefits that are receivable at retirement. ...