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Topic Descriptor 3 December 2019 CTF Roundtable Q. 1, 2019-0824551C6- Multilateral Instrument (“MLI”) Treaties- Multilateral Instrument- Article 7- Article 7(1) “TAP” Committee, similar to the GAAR Committee, to address PPT issues 3 December 2019 CTF Roundtable Q. 2, 2019-0824381C6- Foreign taxes paid Income Tax Act- Section 261- Subsection 261(2)- Paragraph 261(2)(b) translation of foreign taxes at same FX rate as that used for related income is acceptable Treaties- Income Tax Conventions- Article 24 US and UK Treaties do not eliminate FTC requirement that the taxes be paid Income Tax Act- Section 126- Subsection 126(1) taxpayers can translate under s. 126 foreign taxes at the exchange rate applied to the related income 3 December 2019 CTF Roundtable Q. 3, 2019-0824391C6- Safe Income Determination Time Income Tax Act- Section 55- Subsection 55(5)- Paragraph 55(5)(d)- SuParagraph 55(5)(d)(i) the TFSB of FA should be translated into Canadian dollars under s. 55(5)(d) at the safe income determination time 3 December 2019 CTF Roundtable Q. 4, 2019-0824521C6- 84.1(1)(a) v/s 129(1)(a) Income Tax Act- Section 129- Subsection 129(1) CRA confirms its recent volte-face that s. 84.1(1)(b) dividends can generate dividend refunds 3 December 2019 CTF Roundtable Q. 5, 2019-0824561C6- 212.1 Post-mortem Pipeline Transaction Income Tax Act- Section 212.1- Subsection 212.1(6)- Paragraph 212.1(6)(b) a pipeline transaction where there are non-resident beneficiaries currently generates Pt XIII tax 3 December 2019 CTF Roundtable Q. 6, 2019-0823581C6- 21 year planning, 107(5), and TCP Income Tax Act- 101-110- Section 107- Subsection 107(2) a s. 107(2) rollout of Cdn Realtyco shares (i.e., TCP) to a NR-owned corporate beneficiary is inherently abusive Income Tax Act- Section 245- Subsection 245(4) abuse of ss. 107(2) to rollout private Realtyco shares to NR-owned Cdn corporate beneficiary 3 December 2019 CTF Roundtable Q. 7, 2019-0824401C6- TOSI and Inherited Property Income Tax Act- Section 120.4- Subsection 120.4(1.1)- Paragraph 120.4(1.1)(b)- Subparagraph 120.4(1.1)(b)(ii) shares distributed out of an inter vivos trust on an active individual’s death were received as a consequence of death for s. 120.4(1.1)(b)(ii) purposes 3 December 2019 CTF Roundtable Q. 8, 2019-0824411C6- TOSI- Excluded Business Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Amount- Paragraph (e)- Subparagraph (e)(ii) income derived from a prior year’s sale of an excluded business is not excluded 3 December 2019 CTF Roundtable Q. 9, 2019-0824421C6- Excluded Amount-Non-related Business exception Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Amount- Paragraph (e)- Subparagraph (e)(i) a transitional services agreement with an arm’s length purchaser can engage the TOSI rules Income Tax Act- Section 120.4- Subsection 120.4(1)- Related Business- Paragraph (a)- Subparagraph (a)(ii) source individual status retained after arm's length sale if continued active involvement in business 3 December 2019 CTF Roundtable Q. 10, 2019-0824461C6- Earnout payments to non-residents Income Tax Act- Section 212- Subsection 212(1)- Paragraph 212(1)(d)- Subparagraph 212(1)(d)(v) reverse earnout payments generally are not subject to Pt XIII tax 3 December 2019 CTF Roundtable Q. 11, 2019-0824511C6- Common Reporting Standards Income Tax Act- Section 271- Subsection 271(1) Canada uploads common reporting standards (CRS) info onto its systems for full-spectrum compliance use 3 December 2019 CTF Roundtable Q. 12, 2019-0824531C6- Earnout and Cost Recovery Method Income Tax Act- Section 12- Subsection 12(1)- Paragraph 12(1)(g) cost-recovery method earnout can be based on the earnings of a lower-tier corporation 3 December 2019 CTF Roundtable Q. 13, 2019-0824491C6- Triangular Amalgamation Income Tax Act- Section 245- Subsection 245(4) GAAR may apply to the use of a “Midco” to step up the tax basis of a target investment on a triangular amalgamation Income Tax Act- Section 87- Subsection 87(9)- Paragraph 87(9)(a.4) use of a “Midco” on triangular amalgamation “technically” avoids ss. 87(9)(a.4) and (c) limitation 3 December 2019 CTF Roundtable Q. 14, 2019-0824481C6- Replacement Property Rules Income Tax Act- Section 44- Subsection 44(5) a replacement property can be acquired before disposing of the former property Income Tax Act- Section 13- Subsection 13(4.1) property acquired in advance for expansion purposes can qualify 3 December 2019 CTF Roundtable Q. 15, 2019-0824501C6- Subsection 104(13.4) and LCBs Income Tax Act- 101-110- Section 104- Subsection 104(13.4)- Paragraph 104(13.4)(c)- Subparagraph 104(13.4)(c)(i) there can be no interest ultimately payable to the extent that a life interest trust realizes a capital loss in the stub period following death 3 December 2019 CTF Roundtable Q. 16, 2019-0824471C6- Eligible Dividend Designation Income Tax Act- Section 89- Subsection 89(14) where all shareholders of a private corporation are directors, an eligible dividend designation can be done through the dividend declaration ...

Topic Descriptor 26 November 2020 STEP Roundtable Q. 1, 2020-0839931C6- Executor's Year of a GRE Income Tax Act- 101-110- Section 104- Subsection 104(13.3) scope of application of s. 104(13.3) Income Tax Act- 101-110- Section 104- Subsection 104(6) elaboration of executor's year policy Income Tax Act- 101-110- Section 104- Subsection 104(23) CRA executor’s year policy is relevant only where the executor’s year extends beyond the GRE’s taxation year 26 November 2020 STEP Roundtable Q. 2, 2020-0840001C6- Subsection 104(13.4) and LCBs Income Tax Act- Section 161- Subsection 161(1) s. 104(13.4)(c) extension of balance-due date for terminal stub year of alter ego/joint spousal trust can permit capital loss in subsequent stub year to eliminate terminal year interest Income Tax Act- 101-110- Section 104- Subsection 104(13.4)- Paragraph 104(13.4)(c) a capital loss in the tax year following the death of an alter ego trust’s settlor can eliminate interest on the terminal T3 return’s 104(4)(a) gain 26 November 2020 STEP Roundtable Q. 3, 2020-0839881C6- Distribution of taxable capital gain Income Tax Act- 101-110- Section 104- Subsection 104(21) only the taxable portion of a capital gain need be distributed for s. 104(21) purposes 26 November 2020 STEP Roundtable Q. 4, 2020-0838001C6- Foreign Tax Credit Income Tax Act- Section 126- Subsection 126(1) UK source of gain re-sourced to Australia for s. 126 purposes under Australia-Canada Treaty sourcing rule Treaties- Income Tax Conventions- Article 24 a capital gain’s geographic source for Canadian FTC purposes was re-sourced to Australia under the Treaty-source rule 26 November 2020 STEP Roundtable Q. 5, 2020-0847181C6- Subsections 40(3.61) and 164(6) Income Tax Act- Section 164- Subsection 164(6)- Paragraph 164(6)(a) s. 164(6)(a) applied before s. 40(3.61) so as to avoid iterative grind of s. 164(6) carryback amount Income Tax Act- Section 40- Subsection 40(3.61) ss. 40(3.61) and (3.6), and 164(6), not applied iteratively to eliminate a s. 164(6) loss carryback where the estate also realized a small capital gain 26 November 2020 STEP Roundtable Q. 6, 2020-0839991C6- Eligible offset Income Tax Act- 101-110- Section 107- Subsection 107(2)- Paragraph 107(2)(c) generation of a loss to a capital beneficiary attributable to an eligible offset amount Income Tax Act- 101-110- Section 107- Subsection 107(1)- Paragraph 107(1)(a) illustration of s. 107(1)(a) application to avoid capital gain but not necessarily a capital loss 26 November 2020 STEP Roundtable Q. 7, 2020-0837611C6- TOSI and Rental Property Income Tax Act- Section 120.4- Subsection 120.4(1)- Split Income TOSI does not apply to rental properties held by individual co-owners 26 November 2020 STEP Roundtable Q. 8, 2020-0837621C6- TOSI and Donations Income Tax Act- Section 120.4- Subsection 120.4(3) charitable credits do not reduce an individual’s TOSI 26 November 2020 STEP Roundtable Q. 9, 2020-0837631C6- TOSI- Excluded Business Income Tax Act- Section 120.4- Subsection 120.4(1.1)- Paragraph 120.4(1.1)(a) hours worked for multiple corporations cannot be aggregated for purposes of the 20-hour test Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Business a specified individual splitting full-time work amongst multiple corporations might meet the excluded business activity test on less than 4 hours per week per corporation 26 November 2020 STEP Roundtable Q. 10, 2020-0837641C6- TOSI- Excluded Business Income Tax Act- Section 120.4- Subsection 120.4(1)- Split Income investing carried on with the proceeds of sale of a business in which the spousal shareholders had been engaged full time generally would generate TOSI on resulting dividends Income Tax Act- Section 120.4- Subsection 120.4(1)- Excluded Business questioned availability of excluded business exception where investing activity 26 November 2020 STEP Roundtable Q. 11, 2020-0839891C6- Subsection 104(19) Income Tax Act- 101-110- Section 104- Subsection 104(19) dividend subject to Pt IV tax because payer and corporate beneficiary no longer connected at December 31 effective date of all s. 104(19) designations Income Tax Act- Section 186- Subsection 186(1)- Paragraph 186(1)(a) Pt IV tax exemption no longer available because corporate beneficiary was no longer connected at December 31 effective time of s. 104(19) designation Income Tax Act- Section 249- Subsection 249(1)- Paragraph 249(1)(c) individual has a calendar year, even in terminal year Income Tax Act- 101-110- Section 104- Subsection 104(13) designated dividend included in individual’s terminal return which has a December 31 year end 26 November 2020 STEP Roundtable Q. 12, 2020-0839981C6- 21 year planning, 107(5) and TCP Income Tax Act- Section 245- Subsection 245(4) s. 107(2) rollout by Canadian discretionary trust to a NR-owned Canadian corporate beneficiary appears abusive Income Tax Act- 101-110- Section 107- Subsection 107(5) distributions by a Canadian discretionary trust to a NR-owned Canadian corporate beneficiary of TCP not carved-out in s. 107(5) appear abusive 26 November 2020 STEP Roundtable Q. 13, 2020-0847201C6- GRE & section 216 election Income Tax Act- Section 248- Subsection 248(1)- Graduated Rate Estate non-resident estate can be GRE and file s. 216 returns Income Tax Act- Section 216- Subsection 216(1) a non-resident estate (using GRE graduated rates), then its residuary beneficiaries, could file under s. 216 respecting a Canadian rental property Income Tax Act- 101-110- Section 107- Subsection 107(2) s. 107(2) applicable to distribution by NR estate of Canadian rental property NR residuary beneficiaries 26 November 2020 STEP Roundtable Q. 14, 2020-0839961C6- Adjusted Aggregate Investment Income Income Tax Act- Section 125- Subsection 125(5.2) s. 125(5.2)(c) references a reason of reducing the associated group’s AAII for purposes of the passive income reduction rule in s. 125(5.1)(b) 26 November 2020 STEP Roundtable Q. 15, 2020-0839951C6- Subsection 164(6) limitations Income Tax Act- Section 164- Subsection 164(6) no CRA discretion to extend the one-year deadline under s. 164(6) for sustaining the post-death capital loss 26 November 2020 STEP Roundtable Q. 16, 2020-0839921C6- Offshore Tax Informant Update Income Tax Act- Section 152- Subsection 152(1) OTIP stats at end of 2019 26 November 2020 STEP Roundtable Q. 17, 2020-0837001C6- Trust Pass-Through of CGE Income Tax Act- 101-110- Section 104- Subsection 104(21.2) the QSBC share character of capital gains can be flowed out in a 2-tier trust structure Income Tax Act- 101-110- Section 108- Subsection 108(1)- Eligible Taxable Capital Gains "annual gains limit" takes into account lower tier trust's ss. 104(21) and (21.2) designations ...

Bundle Date Translated severed letter Summaries under Summary descriptor 2007-06-15 29 May 2007 Internal T.I. 2006-0217401I7 F- 110(1)d): Moment de la conclusion de la convention 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 Income Tax Act- Section 7- Subsection 7(5) not giving exercise notice to employees who are not shareholders (so that they cannot exercise their options) may engage s. 7(5) 2007-06-08 30 May 2007 External T.I. 2006-0218101E5 F- Interaction entre 125.4(1) et 256(1.2)c) Income Tax Act- Section 256- Subsection 256(1.2)- Paragraph 256(1.2)(c) s. 256(1.2)(c) does not affect the determination of de facto control Income Tax Regulations- Regulation 1106- Subsection 1106(2) s. 256(1.2)(c) does not inform the definition of prescribed taxable Canadian corporation 28 May 2007 External T.I. 2007-0219801E5 F- Paiement de soutien aux enfants Income Tax Act- Section 74.1- Subsection 74.1(2) child assistance payment is transferred to a minor child is subject to s. 74.1(2) attribution 4 June 2007 Internal T.I. 2007-0229251I7 F- Montants reçus pour aide personnelle à domicile Income Tax Act- Section 3- Paragraph 3(a)- Business Source/Reasonable Expectation of Profit no income to parental caregiver in situations similar to Pellerin 9 May 2007 External T.I. 2006-0189931E5 F- Renonciation à une fiducie par un conjoint Income Tax Act- Section 69- Subsection 69(1)- Paragraph 69(1)(b) renunciation of interest in spousal trust not a disposition to the family beneficiaries Income Tax Act- Section 248- Subsection 248(1)- Disposition extinguishment of trust interests on their renunciation is a disposition of the renounced interest, but resulting variation of trust to accelerate distribution entitlements is not Income Tax Act- 101-110- Section 104- Subsection 104(4)- Paragraph 104(4)(a) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not engage s. 104(4) until distribution Income Tax Act- Section 70- Subsection 70(6) variation of spousal trust, following renunciation by spouse, to accelerate distribution entitlement of residuary beneficiaries would not deny s. 70(6) rollover 5 June 2007 Internal T.I. 2007-0237291I7 F- Disposition d'une police d'assurance-vie Income Tax Act- Section 148- Subsection 148(7) s. 148(7) applicable to gift of policies by partners to a limited partnership 30 May 2007 External T.I. 2006-0200271E5 F- Bien agricole et résidence principale Income Tax Act- Section 40- Subsection 40(4) s. 45(3) election did not extend time that farm house was a principal residence, once the occupant went to nursing home Income Tax Act- Section 45- Subsection 45(3) no change of use when occupant of residence moved into a nursing home Income Tax Act- 101-110- Section 110.6- Subsection 110.6(1.3)- Paragraph 110.6(1.3)(c) principally references over 50% of use 11 May 2007 External T.I. 2006-0214351E5 F- Transfert d'un droit de propriété Income Tax Act- Section 40- Subsection 40(2)- Paragraph 40(2)(b) where duplex co-owned by husband and wife, the one unit occupied by them can be designated as a principal residence – but this changes when daughter moves into the 2nd unit Income Tax Act- Section 248- Subsection 248(1)- Property an occupied unit in a co-owned duplex can be designated as a principal residence 2007-06-01 24 May 2007 External T.I. 2006-0209081E5 F- Withholding Source Deductions- Trustee Fees Income Tax Act- Section 248- Subsection 248(1)- Office fees if trustees of REIT based partly on the number of meetings they attended were from an office Income Tax Regulations- Regulation 100- Subsection 100(1)- Remuneration fees received by REIT trustees including per-meeting fees were salary and wages subject to source deductions and T4 reporting 2007-05-25 22 May 2007 External T.I. 2007-0228611E5 F- Crédit pour la création d'emplois pour apprentis Income Tax Act- Section 127- Subsection 127(9)- Eligible Apprentice year means 12 months/”contract” for apprentice can be the collective agreement ...

ROC distribution) irrespective whether effected as cash or unit distribution Income Tax Act- Section 248- Subsection 248(25.3) cost under s. 248(25.3) for distribution of ordinary income or capital gain made as units distribution 19 January 2005 External T.I. 2004-0081001E5 F- Réserve de valorisation d'une coopérative Income Tax Act- Section 135- Subsection 135(4)- Allocation in Proportion to Patronage question of fact whether distributions of enhancement reserves are allocations in accordance with patronage Income Tax Act- Section 181.2- Subsection 181.2(3)- Paragraph 181.2(3)(b) enhancement reserve of Quebec cooperative added to capital 6 January 2005 External T.I. 2004-0087221E5 F- Modification de la déclaration d'une société Income Tax Act- Section 53- Subsection 53(2)- Paragraph 53(2)(h)- Subparagraph 53(2)(h)(i.1) return amendment should be requested where a capital gain has been unreported due to a missed ROC distribution 24 January 2005 External T.I. 2004-0099471E5 F- Convention de retraite pour un actionnaire-employé Income Tax Act- Section 67 81 Roundtable position on shareholder-manager compensation also applies to RCA contributions Income Tax Act- Section 20- Subsection 20(1)- Paragraph 20(1)(r) no deduction regarding pre-incorporation services, and longstanding CRA position re shareholder-manager compensation 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 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 20 January 2005 External T.I. 2004-0104921E5 F- RPDB et déficit cumulé Income Tax Act- Section 147- Subsection 147(1)- Profit Sharing Plan corporation with an accumulated deficit is not precluded from registering a DPSP ...

(b)(v) or (k) of that definition applying Income Tax Act- Section 150- Subsection 150(1.1)- Paragraph 150(1.1)(b)- Subparagraph 150(1.1)(b)(ii) a disposition by a bare trust, or the trust’s winding-up, generally is not a disposition under the ITA 4 June 2024 STEP Roundtable Q. 9, 2024-1020351C6- Paragraph 150(1.2)(b) and GICs Income Tax Act- Section 150- Subsection 150(1.2)- Paragraph 150(1.2)(b) holding any GIC would preclude a trust from qualifying under s. 150(1.2)(b) 4 June 2024 STEP Roundtable Q. 10, 2024-1010241C6- Update on trust / estate issues Income Tax Act- 101-110- Section 104- Subsection 104(6)- Paragraph 104(6)(b) an amount paid by a trust to a beneficiary is not deductible under s. 104(6) if it was not payable under the trust deed 4 June 2024 STEP Roundtable Q. 11, 2024-1003491C6- Foreign Tax Credit for US Estate Tax Treaties- Income Tax Conventions- Article 29B application of Art XXIX-B(6)(a) of the Canada-US treaty where s. 70(5) gain realized on US public company shares and US realty 4 June 2024 STEP Roundtable Q. 12, 2024-1003521C6- Gift from NR Relative Income Tax Act- Section 13- Subsection 13(7)- Paragraph 13(7)(e)- Subparagraph 13(7)(e)(ii) s. 13(7)(e)(ii) applies to a cross-border non-arm’s length gift of a foreign building 4 June 2024 STEP Roundtable Q. 13, 2024-1007851C6- DRT and Section 216 Income Tax Act- Section 94- Subsection 94(3)- Paragraph 94(3)(g) although resident tenant required to withhold on rent to s. 94(3), s. 94(3)(g) applies to such withholding Income Tax Act- Section 94- Subsection 94(3)- Paragraph 94(3)(a)- Subparagraph 94(3)(a)(viii) a Canadian payer must withhold on rent paid to a s. 94 deemed resident trust Income Tax Act- Section 94- Subsection 94(3)- Paragraph 94(3)(a)- Subparagraph 94(3)(a)(ii) s. 94(3)(a) trust computes its income from a Canadian rental property under normal Part I rules, but must observe s. 104(7.01) 4 June 2024 STEP Roundtable Q. 14, 2024-1011571C6- T3 Trust Instalments Income Tax Act- Section 156- Subsection 156(1) no change to administrative practice of not charging interest or penalties for insufficient instalment payments by trusts 4 June 2024 STEP Roundtable Q. 15, 2024-1007831C6- Online Access- Trust Compliance General Concepts- Audit, Filing and Assessment Procedure documents which may be submitted to My Trust Account ...

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. ...