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Summary of  OECD Discussion Draft, Working Party 1 "OECD Model Tax Convention: Tax Treatment of Termination Payments" under Treaties – Art. 15. ...

CRA accepted that Canco's payments to Pubco would be exempted from withholding tax by the Canada-US Income Tax Convention by virtue of being patent/know-how licence payments, other than payments for know-how provided under a "franchise" (a broad term- see Investors Group.) ...

Convention on its share of Canadian branch profits of a U.S. partnership that has elected to be a domestic corporation for Code purposes, if those profits qualify as connected to a substantial U.S. active business under Art. ...

GILTI Tax Treaties- Income Tax Conventions- Article 29 Treaty does not fetter the right of the US to impose GILTI tax with reference to Canadian subs’ income Treaties- Income Tax Conventions- Article 26 Cdn competent authority will not recognize claims that GILTI tax is contrary to Art. ...

Lin, [2018] NZCA 38 under Treaties – Income Tax Conventions – Art. 24 and of Brian J. Arnold, “The Relationship between Controlled Foreign Corporation Rules and Tax Sparing Provisions in Tax Treaties: A New Zealand Case,” Bulletin for International Taxation July 2018, p. 430 under Treaties – Income Tax Conventions – Art. 24. ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2006-09-08 1 November 1994 Internal T.I. 94234170 F- CBR Assurance-vie Income Tax Act- Section 148- Subsection 148(9)- Disposition amendment to policy to reduce premiums and insured amounts was not intended to create a new policy, and was not a disposition Income Tax Act- Section 248- Subsection 248(1)- Disposition amending policy to reduce premiums and insured amount was not a disposition 2006-08-18 20 June 2006 External T.I. 2005-0149651E5 F- CEE / FEC Income Tax Act- Section 66.1- Subsection 66.1(6)- Canadian exploration expense- Paragraph (f) expenditures to ensure safety of exploration personnel generally qualify if not specifically excluded 2006-08-11 18 July 2006 External T.I. 2005-0159781E5 F- Paragraph 55(3)(a) Income Tax Act- Section 55- Subsection 55(3)- Paragraph 55(3)(a)- Subparagraph 55(3)(a)(i) ss. 55(3)(a)(i) to 55(3)(a)(v) not engaged where Holdco spins off Subco to Sisterco and then redeems the minority shareholding in Holdco of 3rd party 18 July 2006 External T.I. 2005-0162181E5 F- Subsection 74.4(2) Income Tax Act- Section 74.4- Subsection 74.4(2)- Paragraph 74.4(4)(a) a 9% spousal shareholder is a specified shareholder if she also controls a related corporation Income Tax Act- Section 248- Subsection 248(1)- Specified Shareholder 9% shareholder of corporation otherwise held by her spouse becomes a specified shareholder if she wholly-owns a second corporation 29 June 2006 External T.I. 2006-0170641E5 F- Distribution of Corporate Property Income Tax Act- Section 84- Subsection 84(2) 12 month maintenance of business of pipeline corporation contributes to favourable s. 84(2) ruling 18 July 2006 Internal T.I. 2006-0184431I7 F- Prêt d'un gouvernement Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(x)- Subparagraph 12(1)(x)(iii) ultimate obligation to repay all the amount advanced rendered a loan an unconditional loan rather than a forgivable loan 1 June 1993 External T.I. 93061850- Prestations d'assurance-salaire Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(f) benefits under wage loss insurance plan were taxable to employees because they had not fully borne the premiums (but s. 6(1)(f)(v) deductions available) 2006-07-28 11 July 2006 External T.I. 2006-0182451E5 F- Indemnité versée par un syndicat Income Tax Act- Section 8- Subsection 8(5) payments by union to members to attend union conventions on their days off reduce the union dues deduction Income Tax Act- Section 3- Paragraph 3(a) payments by union to members to attend union conventions on their days off not taxable 20 July 2006 External T.I. 2005-0124101E5 F- Avantages imposables à des employés Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(a) a working meal potentially could be excluded Income Tax Act- Section 6- Subsection 6(1)- Paragraph 6(1)(b)- Subparagraph 6(1)(b)(v) exemption inapplicable where union employee negotiating contract is employed by different union Income Tax Act- Section 248- Subsection 248(1)- Office temporary position of unionized employee with union is an "office" 11 July 2006 External T.I. 2005-0152031E5 F- Actions admissibles de petite entreprise Income Tax Act- Section 248- Subsection 248(1)- Small Business Corporation building used 75% in the corporation’s active business operations and 25% for rental use would qualify Income Tax Act- 101-110- Section 110.6- Subsection 110.6(7)- Paragraph 110.6(7)(b) transfer of property to corporation for a s. 85 agreed amount less than FMV of the property and the shares issued therefor does not engage s. 110.6(7)(b) ...

Topic Descriptor 17 May 2022 IFA Roundtable Q. 1, 2022-0933371C6- Meaning of Habitual Abode Income Tax Act- Section 2- Subsection 2(1) CRA residence test of “significant, secondary or other ties” Treaties- Income Tax Conventions- Article 4 habitual abode determined in context based inter alia on relative stays and nature of activities 17 May 2022 IFA Roundtable Q. 2, 2022-0926461C6- Royalty Apportionment 212(1)(d)(vi) Income Tax Act- Section 212- Subsection 212(1) CRA has authority to re-apportion where a royalty allocation is not “reasonable and realistic” Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(vi) allocation by arm’s length parties of royalty between copyright and trademark must be “reasonable and realistic” 17 May 2022 IFA Roundtable Q. 3, 2022-0926191C6- Meaning of "goods" under 95(3)(b) Income Tax Act- Section 95- Subsection 95(2)- Paragraph 95(2)(b) s. 95(3)(b) exclusion unavailable where foreign sub’s services were the marketing of condo sales by Canco Income Tax Act- Section 95- Subsection 95(3)- Paragraph 95(3)(b) condo inventory did not qualify as “goods” under s. 95(3)(b) 17 May 2022 IFA Roundtable Q. 4, 2022-0931121C6- PLOI Administrative Policies see more detailed summary at Notice to Tax Professionals (see also CRA provides for expanded PLOI election disclosure and permits PLOI elections to be made on loan-by-loan basis) 17 May 2022 IFA Roundtable Q. 5, 2022-0928101C6- Surplus Account Maintenance Income Tax Act- Section 113- Subsection 113(1)- Paragraph 113(1)(d) s. 113 deductions denied if there is insufficient documentation to support the FA’s surplus computations (even where Pt. I tax computations do not depend thereon) 17 May 2022 IFA Roundtable Q. 6, 2022-0929501C6- Exempt Earnings and Residency Info Income Tax Regulations- Regulation 5907- Subsection 5907(1)- Exempt Earnings- Paragraph (d) exempt surplus calculations must be supported by records showing that the FA’s CMC was exercised in a Treaty country Income Tax Regulations- Regulation 5907- Subsection 5907(11.2)- Paragraph 5907(11.2)(a) residence in country for Treaty purposes does not necessarily establish that its CMC is there 17 May 2022 IFA Roundtable Q. 7, 2022-0926451C6- Cryptocurrency reporting Income Tax Act- Section 233.3- Subsection 233.3(1)- Specified Foreign Property- Paragraph (a) CRA is still reviewing whether and when cryptocurrencies may not be foreign property 17 May 2022 IFA Roundtable Q. 8, 2022-0926431C6- Foreign Entity Classification Income Tax Act- Section 248- Subsection 248(1)- Corporation materials that should accompany an entity-classification ruling request 17 May 2022 IFA Roundtable Q. 9, 2022-0926341C6- Contemporaneous Docs and COVID-19 Income Tax Act- Section 247- New- Subsection 247(4) no COVID extension of 6-month deadline under s. 247(4) to complete contemporaneous documentation 17 May 2022 IFA Roundtable Q. 10, 2022-0926331C6- Corporate Residence Approach Income Tax Act- Section 2- Subsection 2(1) board meeting situs not determinative of CMC 17 May 2022 IFA Roundtable Q. 11, 2022-0926411C6 Income Tax Act- 101-110- Section 110- Subsection 110(1.31) the non-qualified securities rules are being reviewed by Finance respecting options such as RSUs that can never generate a s. 110(1)(d) deduction Income Tax Act- 101-110- Section 110- Subsection 110(1.4) requirement to issue s. 110(1.9) notice to employees re RSUs could be avoided by designating them as non-qualified securities under s. 110(1.4) 17 May 2022 IFA Roundtable Q. 12, 2022-0926361C6- Principal Purpose Test (PPT) Income Tax Act- Section 245- Subsection 245(4) PPT approach can inform GAAR analysis Treaties- Multilateral Instrument- Article 7- Article 7(1) CRA is monitoring PPT compliance on a priority basis 17 May 2022 IFA Roundtable Q. 13, 2022-0926381C6- Statistics on MAPs Treaties- Income Tax Conventions- Article 26 around half of CRA’s recent MAP cases resulted in full relief 17 May 2022 IFA Roundtable Q. 14, 2022-0926441C6- Partnership and Subsection 90(3)Election Income Tax Act- Section 90- Subsection 90(4) proposition applied (regarding a s. 90(3) PUC distribution election) that a partnership cannot be a related person ...

Topic Descriptor 29 November 2022 CTF Roundtable Q. 1, 2022-0949781C6- Loans Made by Limited Partnerships to Limited Partners Income Tax Act- Section 40- Subsection 40(3.1) purpose of policy re annual reversing loans by an LP to its limited partners is only to address timing mismatches 29 November 2022 CTF Roundtable Q. 2, 2022-0950501C6- Section 116 and Taxable Canadian Property Income Tax Act- Section 116- Subsection 116(5) CRA generally will not provide advance guidance on TCP status 29 November 2022 CTF Roundtable Q. 3, 2022-0949771C6- Post-closing adjustments and the impact to escrow shares Income Tax Act- Section 84- Subsection 84(3) cancellation of escrow shares triggered a deemed dividend 29 November 2022 CTF Roundtable Q. 4, 2022-0950561C6- Servers/Data Centres and Location of Services Rendered Treaties- Income Tax Conventions- Article 5 remote customer-support services from the US did not cause a Canadian services PE Income Tax Regulations- Regulation 105- Subsection 105(1) remote customer support services were accessory in nature and were not rendered in Canada 29 November 2022 CTF Roundtable Q. 5, 2022-0949751C6- The New Proposed Critical Mineral Exploration Tax Credit Income Tax Act- Section 127- Subsection 127(9)- Flow-Through Critical Mineral Mining Expenditure the critical METC certification form will be provided shortly 29 November 2022 CTF Roundtable Q. 6, 2022-0950671C6- Guidance on Crypto-asset Taxation and Reporting Income Tax Act- Section 150- Subsection 150(1)- Paragraph 150(1)(d) T1 and related forms to be modified for 2022 to provide further guidance re crypto asset dispositions 29 November 2022 CTF Roundtable Q. 7, 2022-0951051C6- Permanent Establishment and Mining Activities Treaties- Income Tax Conventions- Article 5 where a UK company remotely operated crypto-mining equipment located on a Canadian host company’s premises, the equipment constituted a Canadian PE 29 November 2022 CTF Roundtable Q. 8, 2022-0951041C6- CCA class of Crypto-Asset Mining Hardware Income Tax Regulations- Schedules- Schedule II- Class 50 crypto-mining GPUs and ASICS could qualify as Class 50 assets 29 November 2022 CTF Roundtable Q. 9, 2022-0950531C6- Multiple Wills and T3 Reporting Income Tax Act- 101-110- Section 104- Subsection 104(1) there is only one estate (and one T3 return) for a deceased, even if there are multiple wills Income Tax Act- 101-110- Section 104- Subsection 104(2) s. 104(2) cannot apply where there are multiple wills since there is only one trust 29 November 2022 CTF Roundtable Q. 10, 2022-0950581C6- Common Reporting Standard Income Tax Act- Section 270- Subsection 270(1)- Controlling Persons indirect distributions include receiving favourable loan terms/ settlor includes a substantive contributor 29 November 2022 CTF Roundtable Q. 11, 2022-0949761C6- Earnout Agreement Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) earnout based on subsidiary goodwill/ counting of the 5-year limitation/ when amount becomes payable 29 November 2022 CTF Roundtable Q. 12, 2022-0950591C6- T1134 Income Tax Act- Section 233.4- Subsection 233.4(4) questions on T1134 completion, and link to Q&A page 29 November 2022 CTF Roundtable Q. 13, 2022-0950641C6- Part XIII Tax on Royalties Paid on Broadcasting Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(vi) longstanding according of the copyright exemption to broadcasting (and perhaps other performance) royalties is reversed 29 November 2022 CTF Roundtable Q. 14, 2022-0950551C6- Charity's gift to grantee org Income Tax Act- Section 168- Subsection 168(1)- Paragraph 168(1)(f) Guidelines on directed donations ...

Following a review of the OECD commentaries and the Vienna Convention, Lamarre J in the Tax Court had concluded that the test of habitual abode in a jurisdiction turned on whether the individual "resided there habitually, in the sense that he regularly, customarily or usually lived [there]. ...

CRA's reply was that the fees would not be considered royalties under the OECD Model Convention and instead would be business profits.  ...