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Treaties- Income Tax Conventions- Article 10 Canadian mutual fund trust or pension fund trust deemed to be the beneficial owner of dividends by Art. 29(7)(a) of the Canada-France Convention 31 March 2003 External T.I. 2003-0006305 F- Safe Income Discretionary Dividend Commented on in 2010-0388821E5 F; also released under document number 2003-00063050. ...

Topic Descriptor 15 May 2024 IFA Roundtable Q. 1, 2024-1007651C6- Principal purpose test and the UK-Canada Tax Treaty Treaties- Income Tax Conventions- Article 10 marginally increasing a shareholding to access the Treaty-reduced rate likely would not engage the PPT Treaties- Multilateral Instrument- Article 7- Article 7(1) a non-resident’s increasing its voting shareholding in Canco to access the Treaty-reduced dividend withholding rate likely does not engage the PPT 15 May 2024 IFA Roundtable Q. 2, 2024-1007541C6- Foreign Entity Classification Income Tax Act- Section 248- Subsection 248(1)- Corporation treatment of Luxembourg SCS or SCSp as a partnership Income Tax Act- Section 96 Luxembourg SCS or SCSp may be a partnership 15 May 2024 IFA Roundtable Q. 3, 2024-1007631C6- Cash Pooling and Notifiable Transactions Income Tax Act- Section 237.4- Subsection 237.4(1)- Advisor whether a professional firm is an advisor turns inter alia on its degree of responsibility for the tax advice etc. Income Tax Act- Section 237.4- Subsection 237.4(4) full disclosure of one transaction (e.g., an interest payment) for the series of transactions is sufficient Income Tax Act- Section 237.4- Subsection 237.4(2) cash-pooling arrangement is substantially similar to the back-to-back designated transaction if the Canadian taxpayer as debtor does not withhold on the basis of the higher withholding rate for the ultimate lender 15 May 2024 IFA Roundtable Q. 4, 2024-1007571C6- Late-filed PLOI election Income Tax Act- Section 212.3- Subsection 212.3(12) revised procedures for the filing of late PLOI elections Income Tax Act- Section 15- Subsection 15(2.12) revised procedure for filing late PLOI election under s. 15(2.12) 15 May 2024 IFA Roundtable Q. 5, 2024-1007581C6- Late-filed PLOI election and reassessment of the affected taxation year(s) Income Tax Act- Section 212.3- Subsection 212.3(12) late filing of PLOI election is coupled with an extended reassessment period for the s. 17.1(1) deemed interest Income Tax Act- Section 152- Subsection 152(4)- Paragraph 152(4)(b)- Subparagraph 152(4)(b)(iii)- Clause 152(4)(b)(iii) a late-filing of a PLOI election does not cause the related deemed interest to be statute-barred 15 May 2024 IFA Roundtable Q. 6, 2024-1007591C6- PLOI Election Administrative Relief Income Tax Act- Section 15- Subsection 15(2.11)- Paragraph 15(2.11)(d) CRA effectively indicates that to disengage a single PLOI election, the loan agreement must be replaced Income Tax Act- Section 212.3- Subsection 212.3(11)- Paragraph 212.3(11)(c) irreversibility of choice to make a single election unless a separate loan agreement is entered into 15 May 2024 IFA Roundtable Q. 7, 2024-1007641C6- Principal Purpose Test in the Multilateral Instrument Treaties- Income Tax Conventions- Article 10 application of PPT where Treaty-resident pure holdco with ultimate Treaty-resident parent received Canco dividends Treaties- Multilateral Instrument- Article 7- Article 7(1) PPT application to a treaty-reduced dividends of Canco paid to a pure Holdco with an ultimate Treaty-resident parent ...

Summary of 13 October 2020 External T.I. 2020-0860081E5 under Treaties – Income Tax Conventions- Art. 18. ...

Topic Descriptor 27 October 2020 CTF Roundtable Q. 1, 2020-0860991C6- ACB increase due to misalignment of ACB Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(b) GAAR may apply to spin-offs that effect a disproportionate distribution of high basis assets to the Spinco Income Tax Act- Section 245- Subsection 245(4) duplication of ACB is abusive 27 October 2020 CTF Roundtable Q. 2, 2020-0861001C6- Consolidation of safe income in a corporate group Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) there potentially can be a safe income pick-up from a corporation over which there is no significant influence 27 October 2020 CTF Roundtable Q. 3, 2020-0861031C6- Safe income on reorganization Income Tax Act- Section 55- Subsection 55(2.1)- Paragraph 55(2.1)(c) a spinner corporation is expected to ensure that sufficient tax basis in its shares is transferred to the shares of spinco that also is receiving safe-income rich spin assets 27 October 2020 CTF Roundtable Q. 4, 2020-0862451C6- Sale of TCP by a partnership Income Tax Act- Section 116- Subsection 116(5) the s. 116 certificate limit and the purchase price can coincide even where the vendor partnership has resident partners 27 October 2020 CTF Roundtable Q. 5, 2020-0864281C6- Article IV:6 of the Canada-US Treaty Treaties- Income Tax Conventions- Article 10 choice between application of France and US Convention to dividends paid by Canco at bottom of multi-tier structure Treaties- Income Tax Conventions- Article 4 where Canco is held by fiscally transparent Franceco, which is held by LP with only some US partners, there is a choice as to which Treaty to apply 27 October 2020 CTF Roundtable Q. 6, 2020-0862471C6- MLI and Principal Purpose Test Treaties- Multilateral Instrument- Article 7- Article 7(1) CRA will be guided by the OECD examples in applying the PPT 27 October 2020 CTF Roundtable Q. 7, 2020-0861041C6- CTF Question 7- Subsection 105(1) Income Tax Act- 101-110- Section 105- Subsection 105(1) generally no taxable benefit for beneficiary’s rent-free use of personal-use property of the trust Income Tax Act- Section 73- Subsection 73(1.01)- Paragraph 73(1.01)(c) use by the children of the cottage held in an alter ego or joint spousal trust is not permitted 27 October 2020 CTF Roundtable Q. 8, 2020-0861061C6- SDA and Formula-Based Plans Income Tax Act- Section 248- Subsection 248(1)- Salary Deferral Arrangement formula-based appreciation plans are not SDAs where the formula closely tracks the FMV of the employer’s shares over the plan’s duration 27 October 2020 CTF Roundtable Q. 9, 2020-0866671C6- entity classification of UK LLP Income Tax Act- Section 96 UK LLP has the attributes of a corporation rather than a partnership Income Tax Act- Section 248- Subsection 248(1)- Corporation a UK LLP is a corporation in light of its separate legal personality and sole responsibility for debts and conduct of business 27 October 2020 CTF Roundtable Q. 10, 2020-0860961C6- Refreeze and 74.4(2) Income Tax Act- Section 74.4- Subsection 74.4(3) a refreeze does not reduce the outstanding amount Income Tax Act- Section 74.4- Subsection 74.4(2) a refreeze does not reduce the quantum of any imputed interest under s. 74.4(2) 27 October 2020 CTF Roundtable Q. 11, 2020-0860981C6- Refinancing Prescribed Rate Loans Income Tax Act- Section 74.5- Subsection 74.5(2) fresh prescribed rate loan could be made immediately after repayment of 1st such loan out of sale proceeds Income Tax Act- Section 74.1- Subsection 74.1(3) a 1% prescribed-rate loan can effectively replace a 2% loan if the latter loan is repaid with sales proceeds 27 October 2020 CTF Roundtable Q. 12, 2020-0862501C6- COVID-19 and Prior APAs/Current MAPs Income Tax Act- Section 247- New- Subsection 247(2) CRA will assess the COVID impact on APAs on a case-by-case basis 27 October 2020 CTF Roundtable Q. 13, 2020-0861021C6- Reimbursement of Equipment Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) CRA extends the COVID $500 safe harbor re employer reimbursement of home office computers to other home office items 27 October 2020 CTF Roundtable Q. 14, 2020-0860971C6- Section 86 Reorganization of Capital Income Tax Act- Section 86- Subsection 86(1) a s. 86 reorg normally requires the filing of articles of amendment ...

10 July 2013- 9:52am LLCs owned by US-resident individuals are not entitled to the 5% branch profits rate Email this Content CRA also has published its response at the 2010 annual CTF conference indicating that the branch tax reduction under X(6) of the Canada-US Tax Convention is not available to an LLC that is wholly-owned by US-resident individuals. ...

Krauze, "Impact of Cloud Computing on Permanent Establishments Under the OECD Model Tax Convention," Tax Management International Journal, Vol. 44, No. 3, March 13, 2015, p. 131 under Treaties – Art. 5, Art. 9. ...

24 October 2012- 10:31am CRA characterizes referral fees as royalties rather than business profits Email this Content CRA considers that customer referral fees paid by a Canadian insurance broker to a US insurance broker likely should be characterized as payments for "information concerning... commercial... experience," so that the withholding tax that otherwise would apply under s. 212(1)(d)(ii) will be relieved by the Royalties Article of the Canada-US Income Tax Convention. ...

Tax Convention.  This reasoning probably applies to other penalties that are not imposed under the Internal Revenue Code. ...

29 May 2016- 12:01am CRA continues to not accept the deduction of notional expenses from the profits of PEs of (non-U.S.) non-residents Email this Content Notwithstanding a somewhat revised OECD approach, CRA continues to consider (in light of Cudd Pressure and s. 4(b) of the Income Tax Conventions Interpretations Act) that notional expenses are not deductible in computing the profits attributable to a Canadian permanent establishment for Treaty purposes – with the exception of PEs of qualifying U.S. residents, as to which there is an overriding agreement with the U.S. competent authority. ...