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Rivoalen JA found that there also was an error here: [T]he Convention provides an exception or relief to the appellant, it would take precedence over the Act. The Tax Court did not apply and consider the provisions of the Convention to the facts of this case. ... Canada, 2019 FCA 310 under s. 2(1), s. 128.1(1)(c) and Treaties- Income Tax Conventions- Art. 4. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2006-02-10 2 February 2006 Internal T.I. 2005-0129131I7 F- Assessing 163(2) penalty Income Tax Act- Section 163- Subsection 163(2) s. 163(2) can be imposed where false adjustments are requested, without the necessity to first process those adjustments 2006-02-03 31 January 2006 External T.I. 2005-0151041E5 F- Régimes de sécurité sociale étrangers Treaties- Income Tax Conventions- Article 29 plan recognized as a pension plan under Art. 29(5) of the Cda-France Convention cannot be an EBP 27 January 2006 External T.I. 2005-0164611E5 F- Société immobilière de pension- sens de location Income Tax Act- Section 149- Subsection 149(1)- Paragraph 149(1)(o.2)- Subparagraph 149(1)(o.2)(ii)- Clause 149(1)(o.2)(ii)(A) providing meals, medical services and housekeeping in a seniors apartment would put the corp. offside 31 January 2006 External T.I. 2006-0167501E5 F- Retenues à la source Income Tax Regulations- Regulation 100- Subsection 100(3)- Paragraph 100(3)(c) reasonable belief can be based on confirmation from annuitant 2006-01-27 4 January 2006 Internal T.I. 2005-0115801I7 F- Convention de retraite Income Tax Act- Section 67 Petro-Canada applied re determining reasonableness Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement contributions to a purported RCA that contemplated excessive benefits also were not in relation to an SDA because the contributions were instead were indirect shareholder appropriations Income Tax Act- Section 248- Subsection 248(1)- Retirement Compensation Arrangement arrangement was not an RCA because the benefits were not reasonable Income Tax Act- Section 56- Subsection 56(2) contributions to purported RCA that provided excessive benefits to employee/ultimate shareholders were included in the direct shareholders’ income under s. 56(2) 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 19 January 2006 External T.I. 2006-0165471E5 F- Fiducie exemptée d'impôt Income Tax Act- Section 149- Subsection 149(1)- Paragraph 149(1)(z.1) exemption of trust for closure costs of Quebec disposal facility 2006-01-20 21 December 2005 External T.I. 2005-0150711E5 F- Wind turbines- Class 43.1 Income Tax Regulations- Schedules- Schedule II- Class 43.1- Paragraph (d)- Subparagraph (d)(v) lessor of lands can renounce rights of accession so that operator can own the wind turbines 2006-01-13 6 January 2006 External T.I. 2005-0159421E5 F- Dons visant un programme particulier Income Tax Act- Section 248- Subsection 248(30) acceptable to direct that donation to school where donor’s grandson is student can direct that the funds be used to purchase texts 2006-01-06 22 December 2005 External T.I. 2005-0151091E5 F- Allocation de retraite- retenue à la source Income Tax Regulations- Regulation 100- Subsection 100(3)- Paragraph 100(3)(c) confirmation of RRSP deduction limit is not required from the employee for the portion of the retiring allowance that is eligible for deduction under paragraph 60(j.1) 22 December 2005 External T.I. 2005-0162001E5 F- Déductibilité police d'assurance-vie Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(e.2) no assignment as required for premium deductibility by the taxpayer where the bank starts out as the policy owner ...

XXIV de la Convention Canada-France Treaties- Income Tax Conventions- Article 25 Art. 24(1) of Canada-France Convention would provide the principal residence exemption to a Canadian citizen if France accorded the exemption to a French national residing in Canada 6 January 2005 External T.I. 2004-0088791E5 F- Paragraphe 4803(2) du Règlement Income Tax Regulations- Regulation 4803- Subsection 4803(2) Reg. 4803(2) satisfied if any of its paragraphs is satisfied 2005-01-21 19 January 2005 External T.I. 2004-0091601E5 F- Incitatif versé- taux d'intérêt réduit Income Tax Act- Section 53- Subsection 53(2.1) ss. 13(7.4) and 53(2.1) elections unavailable re acquired rental property for cashback received from mortgage lender to offset high interest rate Income Tax Act- Section 12- Subsection 12(2.2) s. 12(2.2) election available to reduce mortgage interest, re cashback received from mortgage lender, to reduce extra interest incurred in two initial years Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(x)- Subparagraph 12(1)(x)(v) s. 12(1)(x) applies (subject to s. 12(2.2) election) to lump-sum mortgage interest rebate except to the extent the amount was reported as s. 9 income 11 January 2005 External T.I. 2004-0091981E5 F- Revenu de placements:Indiens inscrits Other Legislation/Constitution- Federal- Indian Act- Section 87 interest income of status Indians on loans to on-reserve businesses carrying on their business activities off-reserve were not exempted 10 January 2005 Internal T.I. 2004-0091251I7 F- Définition d'automobile Income Tax Act- Section 248- Subsection 248(1)- Automobile- Paragraph (e)- Subparagraph (e)(iii) exclusion applies even where the occupant is self-employed rather than an employee of the business that owns (or leases) the truck 2005-01-14 13 January 2005 External T.I. 2004-0097911E5 F- Crédit d'impôt pour études Income Tax Act- Section 118.6- Subsection 118.6(1)- Qualifying Educational Program education credit unavailable where the course consisted of discrete 4-day sessions separated by a month or more – but tuition credit may be available 13 January 2005 External T.I. 2004-0101701E5 F- Bien substitué Income Tax Act- Section 248- Subsection 248(5)- Paragraph 248(5)(b) substituted property definition in s. 248(5)(b) does not apply for the purposes of s. 7(1.1) Statutory Interpretation- Interpretation/Definition Provisions deeming provision only engaged when the referenced term is used Income Tax Act- Section 7- Subsection 7(1.1) s. 248(5)(b) inapplicable to s. 7(1.1) 13 January 2005 External T.I. 2004-0103281E5 F- dons et avantages Income Tax Act- Section 248- Subsection 248(32) value of advantage should be based on FMV and ignore sales tax and tips ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2018-04-18 24 January 2018 External T.I. 2016-0645911E5 F- Avantage imposable- Stationnement Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) free parking benefit scaled to comparable-spot charge/ business-use exception excludes overtime use 2018-04-11 6 October 2017 APFF Roundtable Q. 6, 2017-0709041C6 F- Services PE Treaties- Income Tax Conventions- Article 5 there can be a services PE in Canada during the tail end of a project which ends in the first few months of a calendar year 6 October 2017 APFF Roundtable Q. 7, 2017-0709051C6 F- Dédommagement-annulation d'une offre d'achat Income Tax Act- Section 54- Capital Property damages for breach of a purchaser's covenant were proceeds of a capital property Income Tax Act- Section 13- Subsection 13(21)- Undepreciated Capital Cost- A if damages relate to a particular asset of a business that was not disposed of, they will reduce the asset’s cost 6 October 2017 APFF Roundtable Q. 8, 2017-0719491C6 F- Production of NR4 forms Income Tax Regulations- Regulation 202- Regulation 202(1) CRA requires NR4 reporting of withholding-exempt amounts 6 October 2017 APFF Roundtable Q. 9, 2017-0709071C6 F- Corporate Attribution Rules Income Tax Act- Section 74.4- Subsection 74.4(2) a second freeze transaction by a family trust could be viewed as an indirect transfer by the original freezor Income Tax Act- Section 74.5- Subsection 74.5(5) unborn children and spouse not designated persons re freezer trust 6 October 2017 APFF Roundtable Q. 10, 2017-0709081C6 F- Election to treat excess as separate dividend Income Tax Act- Section 184- Subsection 184(3) elected-upon amount is retroactively deemed as income even if it is still unpaid Income Tax Act- Section 185- Subsection 185(3) normal reassessment period starts running from date of Pt III assessment 6 October 2017 APFF Roundtable Q. 11, 2017-0709091C6 F- Transitional rules- Class 14.1 Income Tax Act- Section 13- Subsection 13(38)- Paragraph 13(38)(d)- Subparagraph 13(38)(d)(iii) s. 13(38)(d)(iii) transitional election is irrelevant to ECP dispositions by a calendar-year partnership 6 October 2017 APFF Roundtable Q. 12, 2017-0709111C6 F- Dépenses relatives à un congrès Income Tax Act- Section 20- Subsection 20(10) non-capital convention expenses incurred as business expense may be deducted without refererence to s. 20(10)- but “historically” convention expenses viewed as capital expenditures Income Tax Act- Section 18- Subsection 18(1)- Paragraph 18(1)(b)- Capital Expenditure v. Expense- Know-How and Training convention expenses "historically" viewed as capital expenditures 6 October 2017 APFF Roundtable Q. 13, 2017-0709061C6 F- Calcul des frais pour droit d'usage Income Tax Act- Section 6- Subsection 6(2) s. 6(2) standby charge based on leasing cost to the employer rather than the automobile’s cost to an affiliated purchaser 6 October 2017 APFF Roundtable Q. 14, 2017-0720321C6 F- GAAR & 21-year rule planning Income Tax Act- 101-110- Section 104- Subsection 104(4)- Paragraph 104(4)(a) Act does not contemplate any deferral beyond 21 years while property is directly in a discretionary trust or through a Canco 6 October 2017 APFF Roundtable Q. 15, 2017-0709141C6 F- Designation pursuant to paragraph 111(4)(e) Income Tax Act- Section 111- Subsection 111(4)- Paragraph 111(4)(e) appreciated goodwill is now eligible for the s. 111(4)(e) step-up 6 October 2017 APFF Roundtable Q. 16, 2017-0709161C6 F- Résidence principale sur une terre agricole Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1)- Interest in a Family Farm or Fishing Partnership- Paragraph (a)- Subparagraph (a)(i) a legally non-severable farm that is used both in farming and as a residence is one property for purposes of the s. 110.6 principal-use tests Income Tax Act- Section 248- Subsection 248(1)- Property non-severable farm is a single indivisible property 6 October 2017 APFF Roundtable Q. 17, 2017-0709171C6 F- Arm's length determination Income Tax Act- Section 251- Subsection 251(5)- Paragraph 251(5)(b)- Subparagraph 251(5)(b)(i) "holder-by-holder" method applied to treat contingent s. 251(5)(b) rights as being exercised re all the other shareholders 6 October 2017 APFF Roundtable Q. 18, 2017-0721691C6 F- APFF 2017- Question 18 Income Tax Act- Section 152- Subsection 152(1) DTS update ...

Topic Descriptor 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 1, 2023-0976911C6 F- CELIAPP- Changement d'usage / FHSA- Change in use Income Tax Act- Section 146.6- Subsection 146.6(1)- Qualifying Withdrawal- Paragraph (d) a recent change of a home from rental to principal-residence use cannot ground an FHSA withdrawal 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 2, 2023-0978631C6 F- CELIAPP- Autoconstruction d'une habitation- FHSA- Self-construction Income Tax Act- Section 146.6- Subsection 146.6(1)- Qualifying Withdrawal- Paragraph (c) written agreement for construction before October 1 could be satisfied with agreements with trades by self-constructing individual Income Tax Act- Section 146.6- Subsection 146.6(1)- Qualifying Withdrawal- Paragraph (a) acquisition of home is when it becomes habitable 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 3, 2023-0976921C6 F- CELIAPP- Acquisition d'une quote-part d'une habitation admissible / FHSA- Acquisition of a share of a qualifying home General Concepts- Ownership reference to acquiring a qualifying home includes acquiring a co-ownership interest Income Tax Act- Section 146.6- Subsection 146.6(1)- Qualifying Withdrawal a qualifying withdrawal from an FHSA can fund the purchase of a co-ownership interest in a qualifying home 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 4, 2023-0990531C6 F- Life insurance policy transfer Income Tax Act- 101-110- Section 106- Subsection 106(3) s. 106(3) could apply to a distribution of a dividend in kind Income Tax Act- 101-110- Section 107- Subsection 107(2) s. 107(2) inapplicable to distribution in satisfaction of a trust debt owing to the beneficiary Income Tax Act- Section 148- Subsection 148(7) a trust distribution of a life insurance policy to a beneficiary was made for FMV consideration equal to the part of the beneficiary’s capital or income interest that is satisfied 2 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 5, 2023-0978561C6 F- Partnership – distribution of a life insurance police Income Tax Act- Section 248- Subsection 248(35) holding of policy by partnership prior to its distribution to partner does not count towards the latter’s holding period Income Tax Act- Section 148- Subsection 148(7) s. 98(2) generally prevails over s. 148(7) Income Tax Act- Section 98- Subsection 98(2) disposition of distributed life insurance policy at FMV pursuant to s. 98(2), rather than s. 148(7) applying 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 6, 2023-0994241C6 F- Consequences of Transfer of DSUs to a corporation Income Tax Act- Section 54- Capital Property deferred share units were not capital property Income Tax Act- Section 85- Subsection 85(1.1) DSU rights are not eligible property and not capital property Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement transfer of DSU to corporation would cause it to cease to qualify, perhaps retroactively 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 7, 2023-0994231C6 F- Additional reporting- trusts subject to exception Income Tax Regulations- Regulation 204.2- Subsection 204.2(1) trusts not coming within the preamble to ITA s. 150(1.2) must still provide the additional Reg. 204.2(1) information if not excepted under ss. 150(1.2)(a) to (o) 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 8, 2023-0976901C6 F- RPP survivor benefit flowing through a GRE Income Tax Act- Section 60- Paragraph 60(j) flow-through of pension benefit by estate to surviving spouse through cash and note issuance/ no FHSA deduction for s. 104(27) amount Income Tax Act- 101-110- Section 104- Subsection 104(24) income can be distributed to estate beneficiary by issuing a demand note to her Income Tax Act- 101-110- Section 104- Subsection 104(27) full flow-through of a pension benefit received by the estate to the surviving spouse for s. 60(j) purposes by the estate issuing her a note 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 9, 2023-0976941C6- Withholding on registered plans Treaties- Income Tax Conventions- Article 18 RRSP/ RRIF payments are “pensions” under Art. ... XXII of the US Convention, but must be "periodic pension payments" for 15% rate to apply Treaties- Income Tax Conventions- Article 22 reduced 15% withholding rate under Art. 22 of the Canada-U.S. Convention applies to TFSA and RDSP trusts 3 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 10, 2023-0978651C6- Exchange rate for a stripped interest coupon Income Tax Act- Section 261- Subsection 261(2)- Paragraph 261(2)(b) deemed interest on an FX-denominated stripped coupon should be translated on a daily basis ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2017-05-31 30 March 2017 External T.I. 2015-0609951E5 F- Article 18 of the Canada-Turkey Income Tax Convention Other Legislation/Constitution- Federal- Income Tax Conventions Interpretation Act- Section 5- Pension RRSP annuity payments to Turkish resident were subject to Pt XIII tax as pension payments Income Tax Act- Section 56- Subsection 56(1)- Paragraph 56(1)(d) capital components are not deduction of cost Treaties- Article 18 capital portion of s. 56(1)(d) is not excluded as an annuity under Canada-Turkey Treaty/RRSP annuity payments are pensions 2015-02-04 19 January 2015 External T.I. 2013-0511381E5 F- Disposition subject to warranty Income Tax Act- Section 42 loss not claimable by estate 17 October 2014 Internal T.I. 2014-0546091I7 F- Indemnités lors d'une négociation de gré à gré Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(b) indemnity payment received re principal residence could be exempted under s. 40(2)(b) 8 December 2014 External T.I. 2014-0543891E5 F- Régime privé d'assurance-maladie Income Tax Act- Section 248- Subsection 248(1)- Private Health Services Plan CRA willing to treat a flex plan as being bifurcated into a PHSP and non-PHSP if medical expense portion is recorded separately 2015-01-28 10 November 2014 External T.I. 2014-0536851E5 F- Terre à bois et Plan d'aménagement forestier Income Tax Act- Section 73- Subsection 73(3)- Paragraph 73(3)(c) mere absence of a FMP does not preclude the rollover 17 October 2014 Internal T.I. 2014-0535561I7 F- Application du paragraphe 249(3) Income Tax Act- Section 249- Subsection 249(3) subsequent stub period income is excluded ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2011-06-10 30 May 2011 External T.I. 2011-0393731E5 F- Congrès Income Tax Act- Section 20- Subsection 20(10) taxpayer need not be a member of the convention-sponsoring organization 2011-06-03 19 May 2011 External T.I. 2011-0405431E5 F- RPDB et feuillet T4 Income Tax Regulations- Regulation 8301- Subsection 8301(2) T4 reporting by DPSP employer of pension adjustment Income Tax Act- Section 147- Subsection 147(10.3) T4 reporting-treatment of DPSP benefit to s. 147(2)(k.2) persons Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a)- Subparagraph 6(1)(a)(i) no T4 reporting for employer DPSP contribution 18 May 2011 Internal T.I. 2010-0380391I7 F- Convention entre des co-propriétaires Income Tax Act- Section 9- Nature of Income agreement of co-owners to share revenues disproportionately would be recognized if such agreement is binding 25 May 2011 Internal T.I. 2011-0395871I7 F- Pension alimentaire- désignation rétroactive Income Tax Act- Section 56.1- Subsection 56.1(4)- Support Amount monthly interim amounts retroactively declared to be support were “support amounts” in contrast to subsequently declared arrears support 24 May 2011 External T.I. 2010-0387741E5 F- Revenu d'entreprise exploitée activement Income Tax Act- Section 125- Subsection 125(7)- Specified Investment Business corporation renting out trailers earned other business income rather than income from property given level of services provided 2011-05-27 20 May 2011 External T.I. 2011-0394391E5 F- Tuition Tax Credit Income Tax Act- Section 118.5- Subsection 118.5(3)- Paragraph118.5(3)(c)- Subparagraph118.5(3)(c)(ii) costs of laptops purchased pursuant to bundled purchase program did not qualify ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2010-07-02 17 May 2010 External T.I. 2009-0346011E5 F- Immeuble- Convention Canada- Portugal Treaties- Income Tax Conventions- Article 25 no discrimination in Canada taxing a Canadian resident on a Portuguese real estate gain exempted from Portuguese tax Income Tax Act- Section 54- Principal Residence- Paragraph (a) Portuguese home of Canadian resident could qualify for the principal residence exemption 21 May 2010 External T.I. 2009-0352221E5 F- Bien de remplacement- résidence principale Income Tax Act- Section 44- Subsection 44(5)- Paragraph 44(5)(a.1) replacement property rules re involuntary disposition of secondary residence in country could apply to replacement property in city 14 May 2010 External T.I. 2009-0323151E5 F- Cross Border Stock Option Income Tax Act- Section 128.1- Subsection 128.1(1)- Paragraph 128.1(1)(b)- Subparagraph 128.1(1)(b)(iv) individual fully taxable on s. 7 benefit without carve-out for portion that had accrued prior to immigration to Canada 23 June 2010 External T.I. 2010-0365581E5 F- Règles d'attribution de l'article 74.2 Income Tax Act- Section 74.5- Subsection 74.5(1)- Paragraph 74.5(1)(c) s. 74.2(1) inapplicable to transfer at FMV of property to a discretionary family trust, with capital gain on property subsequently distributed to spouse of transferor Income Tax Act- Section 75- Subsection 75(2) s. 75(2)(a)(i) is satisfied where a person transferring to a trust holds a capital interest in that trust 2010-06-25 16 June 2010 External T.I. 2009-0344861E5 F- Actifs de la Catégorie 16 Income Tax Regulations- Schedules- Schedule II- Class 16- Paragraph (e) pick-up trucks leased out on short-term basis but also used as described in (e)(ii) of automobile are in Class 16- otherwise, Class 10 ...

Commentary … warns against “unduly” extending the reach of Art. 24 of the Model Tax Convention (here Art. 25 of the Treaty) to “cover so-called “indirect” discrimination.” ... Summary of Commissioner of Taxation v Addy [2020] FCAFC 135 under Treaties – Income Tax Conventions – Art. 25. ...

Art. 14 of the Income Tax Convention between France and Quebec only exempted income derived by a resident of France from a “liberal profession” (such as law) where such income did not relate to a fixed base used by the French resident in Quebec in exercising such profession. ... Agence du revenu du Québec, 2020 QCCQ 3605 under Treaties – Income Tax Conventions – Art. 7 and s. 96(1)(f). ...