(2)-(41)

Table of Contents

Articles

Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Trusts Resident in Canada", Chapter 3 of Canadian Taxation of Trusts, (Canadian Tax Foundation), 2016.

Under-the-will requirement where varied (p. 173)

It is the CRAs view that a trust is not created under a taxpayer's will when the trust is created...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(3) 374
Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(4) - Paragraph 251.1(4)(d) 437
Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(g) - Subparagraph 251.1(1)(g)(ii) 115
Tax Topics - Income Tax Act - Section 164 - Subsection 164(6) 141
Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) 331
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(1) 144
Tax Topics - Income Tax Act - Section 251.2 - Subsection 251.2(3) - Paragraph 251.2(3)(b) 112
Tax Topics - Income Tax Act - Section 252.2 - Subsection 252.2(2) 115
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(i) 176
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(d.1) 161
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 1201
Tax Topics - Treaties - Income Tax Conventions - Article 29B 239
Tax Topics - Income Tax Act - Section 248 - Subsection 248(8) 199
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.2) 59
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.3) 38
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(6) 174
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(6) 164
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) 163
Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) 91
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(18) 49
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(7.01) 66
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(19) 311
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) 125
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) 144
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) 379

Subsection 248(2) - Tax payable

Cases

R. v. Simmons, 84 DTC 6171 (Nfld. Prov. Ct.)

"[O]n the point raised by Mr. Sopinka that the charges were premature ... I will follow the Myers case (R. v. Myers and Inter Publishing Co. Ltd.,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 244 - Subsection 244(4) 37

Subsection 248(3) - Property subject to certain Quebec institutions and arrangements

Cases

Canada v. Construction Bérou Inc., 99 D.T.C 5869 (FCA)

Létourneau J.A. found (at p. 5872) that s. 248(3) "is intended to treat beneficial ownership of property in the same way as various forms of...

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Administrative Policy

7 October 2020 APFF Roundtable Q. 5, 2020-0852171C6 F - Usufruct of a principal residence

A housing unit is subject to a usufruct created by the Quebec will of Mr. X, with Mr. X’s surviving spouse (Ms. X) being the usufructuary, and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) a deemed s. 248(3) testamentary usufruct trust might access the principal residence exemption on the spousal usufructuary’s death or on her surrendering her interest 409
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(4) application of s. 107(4) to termination of deemed s. 248(3)(a) spousal trust 472
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) s. 70(6)(b)(ii) not satisfied where residence of deceased passes to a usufruct for his surviving spouse for a fixed term of years 218

13 April 2015 External T.I. 2012-0449141E5 F - Usufruct

A corporation sold the usufruct respecting a property to an arm’s length third party for use as a secondary residence, while retaining the bare...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) 75(2) applies to termination of usufruct 174
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2.1) 107(2.1) application to termination of usufruct created for valuable consideration 126

22 May 2014 External T.I. 2014-0519811E5 F - Droit d'usage au Québec pré-1991

Before going on to find that the usufructuary of duplex unit (acquired before 1991) was entitled to claim the principal residence exemption on a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Principal Residence usufructuary of duplex unit (with her right acquired pre-1991) entitled to claim principal residence exemption on post-1991 disposition 167
Tax Topics - General Concepts - Ownership usufructuary of duplex unit was de facto owner thereof 71

5 October 2012 APFF Roundtable, 2012-0451281C6 F - Usufruit étranger

Respecting the creation of a usufruct under the French Civil Code, CRA stated:

Where a usufruct is not governed by the laws of Quebec, subsection...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition whether the formation of a usufruct under overseas law triggers a disposition turns on such law 135

17 August 2010 External T.I. 2010-0367371E5 F - Fin d'un usufruit - résidence principale

An individual purchased a housing unit for which he established a usufruct in favour of his parents. At all relevant times, the individual owned...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (a.1) usufructuary parents were specified beneficiaries based on their inhabiting the housing unit 287
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2.01) deemed s. 248(3) trust that dissolved when the usufructuary parents renounced their, makes a s. 107(2.01) or (2.001) to apply principal residence exemption to dissolution gain 287

27 May 2009 Internal T.I. 2009-0310751I7 F - Usufruit d'un immeuble avant 1991

In 1985, an individual sold a building to his children on which he had reserved for himself, under the deed of sale, the right of usufruct or...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Principal Residence usufructuary under usufruct created prior to 1991 was beneficial owner on his death in 2007 for principal residence exemption purposes 48

13 September 2007 External T.I. 2006-0214631E5 F - Déboursé pour usufruit ou droit d'usage

A taxpayer sold, to an arm’s length farm corporation, the usufruct or right of use for the use of land together with the buildings thereon for a...

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13 July 2004 External T.I. 2004-0058141E5 F - Transfert du droit aux revenus provenant d'un bien

Monsieur and Madam will transfer, to their jointly-owned corporation, the right to receive the income from a rental property for a specified...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) rollover not available to assignment of the rents from a rental property to a corporation for shares since the transferee was a deemed trust under s. 248(3) 68
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) applicable to assignment of the rents from a rental property to a corporation giving rise to a deemed trust under s. 248(3) 93

1 August 2003 Internal T.I. 2003-0009697 F - Usufruit et amortissement

In 1990, an individual died and bequeathed the usufruct of an immovable to a friend. CCRA noted that if the required transitional election had...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) bare owner not entitled to claim CCA on property even if s. 248(3) does not apply 65

Paragraph 248(3)(a)

Administrative Policy

20 April 2017 External T.I. 2016-0672501E5 F - Usufruct and Use of capital of a trust by a spouse

The will of the Quebec deceased bequeathed the usufruct of rental property to his spouse and the bare ownership to his adult child, thereby giving...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(b) - Subparagraph 70(6)(b)(ii) right of the bare owner of property, subject to a usufruct in favour of a surviving spouse, to dispose of his bare ownership does not preclude a spousal trust 151

11 March 2013 External T.I. 2012-0432201E5 F - Payment of tax by an institute

An individual bequeaths property by way of substitution to the individual’s surviving spouse, with the property remaining on the spouse’s...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust - Paragraph (d) spousal beneficiary of substitution by testament does not taint the resulting deemed testamentary trust by paying the trust taxes 283

12 January 2012 External T.I. 2011-0421791E5 F - Usufruit de terres boisées acquises avant 1987

Father, a retired person, who acquired woodlands from his father before 1987 gifts the bare ownership of the woodlands to his Child, while...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c) property acquired before 18 June 1987 will qualify if s. 110.6(1.3)(c)(i) or (ii) satisfied 240

11 April 2005 External T.I. 2004-0091721E5 F - Usufruit d'un bien immeuble situé en France

A resident of Canada gifted to his daughter, also resident in Canada, the bare ownership of an income property located in France, while retaining...

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Paragraph 248(3)(c)

Administrative Policy

5 January 2007 External T.I. 2005-0133321E5 F - Validité d'un REER

A Quebec RRSP formed before 2010 was still valid following the Bank Nova Scotia v. Thibault, 2004 S.C.C. 29 decision, notwithstanding that it was...

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Paragraph 248(3)(e)

Administrative Policy

15 December 2003 External T.I. 2003-0182855 - Fiducie pour Loi au Quebec

Regarding the satisfaction by an individual that a transfer of property to a self-benefit trust established under Quebec law for that individual...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Ownership sole beneficiary of Quebec trust is the beneficial owner of its property 273
Tax Topics - Income Tax Act - Section 73 - Subsection 73(1.02) - Paragraph 73(1.02)(b) - Subparagraph 73(1.02)(b)(ii) no change in beneficial ownership on transfer of property to self-benefit Quebec trust 171
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) policy is for s. 75(2) application not to result in double taxation 118

4 April 2002 External T.I. 2001-0103735 F - Fiducie exclusive au conjoint et ass.-vie

A spousal trust for the widow (Ms. A) of Mr. A held shares of Opco which, in turn, was the owner and beneficiary of a policy that became payable...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(14) - Paragraph 110.6(14)(g) s. 110.6(14)(g) inapplicable to shares held by spousal trust on the spouse’s death 90
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(15) - Paragraph 110.6(15)(a) the spouse beneficiary of a Quebec spousal trust owns the shares owned by that trust 199
Tax Topics - Income Tax Act - Section 70 - Subsection 70(5.3) s. 70(5.3) applicable to s. 104(4)(a)(i) disposition 75

Subsection 248(4) - Interest in real property

See Also

Re Redmond et al. and Rothschild, [1971] 1 O.R. 436 (Ont. CA)

At the relevant time, the predecessor version of s. 50(2)(b) (i.e., s. 26(1)(b)) of the Planning Act (Ontario), which prohibited an unauthorized...

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Words and Phrases
fee

Administrative Policy

16 March 2015 Internal T.I. 2013-0479861I7 - Section 116 & forfeited deposits on real property

A non-resident vendor received a deposit under an agreement for sale of B.C. real property, which will be forfeited to it due to failure of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) forfeited sale deposit was proceeds of security interest rather than of tcp 264
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) forfeited sale deposit was proceeds 79

13 September 2012 CICA Compliance Roundtable, 2012-0453021C6 - Taxable Canadian Property

Respecting a question as to whether shares of an unlisted corporation would be taxable Canadian property if during the preceding 60 months "most...

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2001 Ruling 2001-0083883 - QUALIFIED INVST RRSP RRIF RESP DPSP

A mortgage bond secured by a leasehold interest in land would constitute a mortgage secured by real property situated in Canada in light of s....

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18 January 1993 External T.I. 5-921718

A three-year second mortgage loan, bearing interest at 11% per annum, made by a non-resident to a Canadian partnership provided that on maturity...

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December 1990 TI 1990-240

In light of s. 248(4), leasehold improvements to a leasehold interest would, if rented, be considered to give rise to income from real property...

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15 January 1987 TI 7-1282

Although s. 248(4) deem leases (in this case grazing leases on Crown lands) to be interest in real property, the definition of qualified farm...

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Subsection 248(5) - Substituted property

Cases

Canada v. Sommerer, 2012 DTC 5126 [at 7219], 2012 FCA 207

In determining whether s. 75(2) should apply to the taxpayer, Sharlow J.A. stated (at para. 46):

This provision must be read together with...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) Austrian foundation likely not a trust 181
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) does not apply to FMV purchases 236
Tax Topics - Treaties - Income Tax Conventions treaty applies to economic double taxation 356
Tax Topics - Treaties - Income Tax Conventions - Article 13 attributed gain not included 415

See Also

St-Pierre c. La Reine, 2008 DTC 3730, 2007 TCC 90

The taxpayer transferred shares of a corporation ("3101") to a management company controlled by him and the management company disposed of a...

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Administrative Policy

15 June 2021 STEP Roundtable Q. 5, 2021-0883001C6 - Income Attribution from AET

How would s. 75(2) apply where proceeds or income of property of an alter ego trust that had been contributed by the settlor was reinvested?

CRA...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) "second generation income" is not subject to s. 75(2) attribution 453
Tax Topics - Income Tax Act - Section 82 - Subsection 82(2) application of s. 82(2) where s. 75(2) applies to dividend income allocated by a partnership 125

22 June 2016 Internal T.I. 2016-0632821I7 F - 93(2.01) & Capital Contribution

Canco contributed (for no share consideration) its shares of a non-resident Finco subsidiary (Luxco2 – which previously had paid exempt...

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Words and Phrases
substituted
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 93 - Subsection 93(2.01) a contribution of FA1 shares to FA2 causes the FA2 shares to be substituted property for s. 93(2.01) purposes 195
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a) - Subparagraph 95(2)(a)(ii) - Clause 95(2)(a)(ii)(B) inter-affiliate loan generating deemed active business funded out of an interest-free loan from Canco 105

25 September 2013 Internal T.I. 2013-0476311I7 F - 93(2), 93(2.01) - Share substituted

In the course of reviewing the facts summarized under s. 93(2.01), CRA stated (TaxInterpretations translation):

Subsection 248(5) provides rules...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 93 - Subsection 93(2.01) concept of substituted share in s. 93(2.01) is subject to the exchanged-for limitation in s. 248(5)(a) 1304

10 May 2013 Internal T.I. 2012-0464901I7 - 93(2), 93(2.01) - Share substituted

Canco owns all the shares of Forco1, which it transfers to Forco2 for a promissory note payable in U.S. dollars, and then transfers the note to...

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15 February 2006 External T.I. 2005-0126831E5 F - 120.4(1) - définition : montant exclu

In finding that income from shares acquired by a minor child from money received as a consequence of the death of a parent was not excluded under...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 120.4 - Subsection 120.4(1) - Excluded Amount - Paragraph (a) para. (a) exclusion does not apply to substituted property 128

6 April 1992 T.I. 920265 (March 1993 Access Letter, p. 71 ¶C56-218; Tax Window, No. 18, p. 1, ¶1852)

Where, in 1978, a taxpayer transferred property to his spouse who, in turn, transferred the property to a holding company for preferred shares and...

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15 January 1992 T.I. (Tax Window, No. 15, p. 12, ¶1700)

Where a minor son received shares from his father on a rollover basis pursuant to former s. 73(5), realizes an exempt capital gain on a later...

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Paragraph 248(5)(a)

Paragraph 248(5)(b)

Administrative Policy

2023 Ruling 2020-0862441R3 - Charitable donation by Estate

S. 118.1(5.1)(b) requires that in order for a gift to be deemed to be one made by the deceased rather than the estate, it must be a gift of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(5.1) - Paragraph 118.1(5.1)(b) cash extracted from an estate subsidiary can be rendered substituted property for s. 118.1(5.1)(b) purposes by having such cash paid as redemption proceeds 536

13 January 2005 External T.I. 2004-0101701E5 F - Bien substitué

In finding that the provisions of s. 7(1.1) would not apply to shares received as a stock dividend on shares that had been acquired on the...

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Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions deeming provision only engaged when the referenced term is used 64
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.1) s. 248(5)(b) inapplicable to s. 7(1.1) 35

23 September 2004 External T.I. 2004-0088801E5 F - Stop-Loss Provisions -- Grandfathering

Grandfathering regarding the stop-loss rule in s. 112(3.2), which turned on the shares being considered to have been held by an individual...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) s. 248(5)(b) did not deem stock dividend shares to be the same shares as those on which the dividend was paid for transitional relief purposes 174

Subsection 248(6) - “Class” of shares issued in series

See Also

Bowater Canadian Ltd. v. R.L. Crain Inc. (1987), 62 OR (2d) 752 (C.A.)

The articles of amalgamation of the corporation provided for common shares, and for "special common shares" which were entitled to ten votes per...

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Subsection 248(7) - Receipt of things mailed

Cases

Lauzon v. Canada (Revenue Agency), 2021 FC 431

The taxpayer alleged that he had not received cheques for refunds claimed in his returns for his 2005 and 2006 taxation years, which CRA’s...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Unjust Enrichment rejection of an unjust enrichment claim by a taxpayer claiming he had not received refund cheques 334

See Also

Canada v. Schafer, 2000 DTC 6542 (FCA)

A notice of assessment that the trial judge found the respondent had never received was deemed by s. 334(1) of the ETA to have been received by...

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Sameden Oil of Canada, Inc. v. Provincial Treasurer of Alberta (1993), 102 DLR (4th) 125 (Alta. C.A.)

The taxpayer mailed his 1988 corporate tax return by registered mail from the United States on June 30, 1989, and the return was received by the...

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Words and Phrases
file

Rolling v. Willann Investments Ltd. (1989), 63 DLR (4th) 760 (Ont CA)

An offer was considered to have been "delivered" to a person ("Willann") when it was faxed to Willann:

"Where technological advances had been made...

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Words and Phrases
delivered

Administrative Policy

May 2019 CPA Alberta CRA Roundtable, General Session – Q.4

After referring to s. 248(7), the questioner asked when a return is considered delivered to CRA by Canada Post’s Expedited Parcel service. CRA...

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Subsection 248(8) - Occurrences as a consequence of death

Articles

Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Trusts Resident in Canada", Chapter 3 of Canadian Taxation of Trusts, (Canadian Tax Foundation), 2016.

Effect of disclaimer or release (pp. 177-8)

Under the common law, a disclaimer means a refusal to accept a gift or other transfer of property....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(3) 374
Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(4) - Paragraph 251.1(4)(d) 437
Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(g) - Subparagraph 251.1(1)(g)(ii) 115
Tax Topics - Income Tax Act - Section 164 - Subsection 164(6) 141
Tax Topics - Income Tax Act - Section 112 - Subsection 112(3.2) 331
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(1) 144
Tax Topics - Income Tax Act - Section 251.2 - Subsection 251.2(3) - Paragraph 251.2(3)(b) 112
Tax Topics - Income Tax Act - Section 252.2 - Subsection 252.2(2) 115
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(i) 176
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) - Paragraph 70(6)(d.1) 161
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 1201
Tax Topics - Treaties - Income Tax Conventions - Article 29B 239
Tax Topics - Income Tax Act - Section 248 - (2)-(41) 157
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.2) 59
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(a.3) 38
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(6) 174
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(6) 164
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) 163
Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) 91
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(18) 49
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(7.01) 66
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(19) 311
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) 125
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(bb) 144
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) 379

Paragraph 248(8)(a)

See Also

Bueti v. The Queen, 2015 DTC 1213 [at 1374], 2015 TCC 265

Owen J made a factual finding that a particular property (a house in the estate of the taxpayer's father) was purchased for cash consideration by...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Ownership residuary beneficiary had no ownership of estate property 118
Tax Topics - Income Tax Act - Section 70 - Subsection 70(5) residuary beneficiary did not acquire as a consequence of death 250

Husel Estate v. The Queen, 94 DTC 1765, [1995] 1 CTC 2298 (TCC)

Kempo TCJ. found (at p. 1769) that s. 248(8)(a) was added "to obviate the denial of a rollover in situations where an individual, qua beneficiary,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) 51

Administrative Policy

7 October 2020 APFF Financial Strategies and Instruments Roundtable Q. 5, 2020-0851601C6 F - TFSA Exempt Contribution - Spousal Trust

The TFSA rules contemplate that the surviving spouse of a deceased TFSA holder can make an “exempt contribution” of the payment to him or her...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) bequest of TFSA to spousal trust which, in turn, distributed the TFSA proceeds per the will to the surviving spouse would qualify as an indirect transfer as a consequence of death 500

6 June 2017 External T.I. 2015-0617331E5 F - TFSA - Exempt Contribution

CRA indicated, similarly to 2016-0679751E5 F, that in light inter alia of s. 248(8)(a), a payment could be considered to be made to a surviving...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) payment of family-law debt out of TFSA to surviving spouse would occur as a consequence of the deceased’s death 316
Tax Topics - Income Tax Act - Section 248 - Subsection 248(23.1) - Paragraph 248(23.1)(a) payment of family-law obligation of deceased to surviving spouse out of deceased's TFSA could qualify 84

11 May 2017 External T.I. 2016-0679751E5 F - TFSA - Exempt Contribution

The definition of “survivor payment” in s. 207.01(1) - exempt contribution – para. (b) references a payment to the survivor directly or...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) a “survivor payment” can be made out of the deceased’s TFSA even where this occurs in the executor’s discretion 208

10 June 2016 STEP Roundtable Q. 10, 2016-0645781C6 - US Revocable Living Trusts

A U.S. resident (the “grantor”) settles a “revocable living trust” with property including taxable Canadian property. The grantor: is the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) U.S. revocable living trust is not a bare trust 171
Tax Topics - Income Tax Act - Section 70 - Subsection 70(5) transfer to remainder beneficiary of a U.S. revocable living trust on death does not occur as a consequence of death 126

16 December 2014 External T.I. 2014-0539841E5 F - Testamentary Trust

Would a trust created by will in favour of the child of the deceased (the "Child Trust") cease to qualify as a testamentary trust in the year of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust transfer from one testamentary trust to another pursuant to a will direction treated as a non-tainting contribution from the deceased 152

12 June 2012 STEP CRA Roundtable, 2012-0442931C6 - 2012 STEP Question 8

In the situation where the estate trustees are instructed under the Will to set up a number of trusts from the residue of the estate, CRA...

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11 January 2012 STEP Roundtable, 2011-0402291C6 - Subsection 248(8)-Intestacy-Transfer of Property

Where a taxpayer dies intestate, then provided the property of the deceased is distributed to the beneficiaries in accordance with the shares...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 60 - Paragraph 60(l) 108
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) non pro rata allocations to beneficiaries 124

20 October 2009 External T.I. 2009-0328441E5 F - Fiducie testamentaire

Under the terms of a deceased person's will, all property is bequeathed in equal shares to the deceased’s children. The heirs, in order to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) would apply if heirs form a trust to provide for their sister out of the residue, with the remainder to them on her death 173

6 October 2006 Roundtable, 2006-0197151C6 F - Acquisition selon convention entre actionnaires

A shareholders' agreement gives children the right to acquire the shares of a farm corporation for $1 after their father's death. If the children...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(9.2) children’s exercise of a right in a shareholders’ agreement to acquire farmco shares that is triggered on their father’s death would not be a consequence of his death 97

5 May 1995 External T.I. 9500985 - ASSUMPTION OF LIABILITIES

A transfer of shares of a private corporation made to the surviving spouse after her agreement to assume liabilities of the estate and provide...

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17 August 1994 External T.I. 9410535 - TRUSTS - "AS A CONSEQUENCE OF THE TAXPAYER'S DEATH"

A discretion accorded by the will to the executors to determine the particular assets to be distributed to the spouse or spousal trust of the...

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Articles

Hoffstein, Lee, "Restructuring the Will and the Testamentary Trust: Methods, Underlying Legal Principles and Tax Considerations", Estates and Trust Journal, Volume 13, 1993, p. 42.

Paragraph 248(8)(b)

Cases

Biderman v. The Queen, 2000 DTC 6149, 2001 FCA 269 (FCA)

The taxpayer, who had tax debts on his death, made an "informal" disclaimer of his beneficial interest under the estate of his wife five days...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) conduct subsequent to death inconsistent with disclaimer 150

See Also

Lewski v Commissioner of Taxation, [2017] FCAFC 145

The Commissioner of Taxation denied a claimed loss carryforward of a trust which had declared a distribution of all its income for a particular...

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Words and Phrases
disclaimer
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Incurring of Expense obligation to pay purchase price was incurred on agreement date rather than subsequent closing 430
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) an alternate resolution that the taxpayer was not entitled to an income distribution if Revenue denied a trust deduction made her entitlement contingent and non-includible 374
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) a trust income declaration that was subject to a tax contingency did not result in an income inclusion to the beneficiary 149
Tax Topics - General Concepts - Agency knowledge of agent imputed to principal 217

Ginsburg v. MNR, 92 DTC 1774, [1992] 2 CTC 2152 (TCC)

The taxpayer was entitled under the will of her late husband to all the income from the residue of his estate under a spousal trust, and received ...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(24) income payable even before amount ascertained 242

Sembaliuk v. Sembaliuk (1984), 43 R.F.L. (2d) 425 (Alta. C.A.)

"[A] disclaimer, being an avoidance of a gift, is not a conveyance of the property comprised in that gift."

Montreal Trust Co. v. Matthews, [1979] 3 WWR 621 (BCSC)

"A disclaimer can be made by deed, writing, under hand only or even as a result of contract, as any document is admissible so that evidence of...

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Administrative Policy

11 October 2019 APFF Financial Strategies and Instruments Roundtable Q. 6, 2019-0813451C6 F - TFSA - Bequest and disclaimer

Although an individual made a specific bequest under his will of his TFSA to his adult daughter, she executed a written renunciation of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) transfer of TFSA to surviving spouse because of daughter’s renunciation occurred as a consequence of the deceased’s death 222

10 May 2006 External T.I. 2005-0162591E5 F - Renonciation à une succession: REER

Mr. A, who died intestate holding an unmatured RRSP and other assets, left his spouse ("Mrs. A") and two children as heirs. If the children...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.1) renunciation by two children for the benefit of the other heir did not give rise to a transfer as a consequence of death 183

10 April 1997 External T.I. 9706185 - "AS A CONSEQUENCE OF DEATH"

Where children surrender (as defined in s. 248(9)) their interest in an RRSP and the surviving spouse (their mother) thereby acquires an interest...

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9 March 1992 T.I. (Tax Window, No. 17, p. 9, ¶1788)

Discussion of factors relevant to determining whether a transfer of rights under a will by a beneficiary is a true disclaimer, release or surrender.

8 March 1991 T.I. (Tax Window, No. 1, p. 21, ¶1152)

An election under the Family Law Act (Ontario) by a surviving spouse is a disclaimer for purposes of s. 248(8)(b), with the result that the...

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22 February 1990 T.I. (July 1990 Access Letter, ¶1348)

IT-385R, para. 6, continues to reflect RC's position where a taxpayer renounces any part of his income interest in a trust subsequent to having...

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Articles

Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Beneficiaries Resident in Canada", Chapter 4 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.

Requirements for valid disclaimer of income interest (p. 340)

A taxpayer who executes a valid disclaimer of an income interest in a trust is...

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Words and Phrases
disclaimer

Paragraph 248(8)(c)

Administrative Policy

S6-F2-C1 - Disposition of an Income Interest in a Trust

1.14 When subsection 248(8) applies, the more restrictive requirements of the definition of release or surrender found in subsection 248(9) must...

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Subsection 248(9)

Disclaimer

Administrative Policy

16 December 2008 External T.I. 2008-0279741E5 F - Renonciation au capital d'une fiducie

An individual transfers shares to a trust of which he is the trustee, and he, his wife and children are the capital and income beneficiary. In...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) settlor’s valid renunciation of capital interest (but not income interest) prior to trustees’ exercise of discretion to distribute a capital gain would avoid application of s. 75(2)(a)(i) 199
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (i) non-disposition distribution of non-taxable portion of trust capital gains avoids a gain under s. 107(2.1) 375
Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition settlor’s renunciation of capital interest (but not income interest) prior to trustees’ exercise of discretion to distribute a capital gain would generate nil proceeds and not engage s. 56(2) or (4) 194
Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) s. 69(1) does not apply to a renunciation of trust capital interest since no disposition "to" any person 44
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) inapplicable to renunciation of capital interest in a trust 45
Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) s. 56(4) inapplicable to disclaimer of capital interest in a trust 43

Subsection 248(9.1)

Subsection 248(10) - Series of transactions

Cases

Deans Knight Income Corp. v. Canada, 2023 SCC 16

In the course of a general discussion, Rowe J stated (at para. 55):

A series of transactions also includes “related transactions or events . . ....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) a transaction where a Lossco became subject to control rights similar to de jure control abused the rationale of s. 111(5) 526
Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) rationale of s. 111(5) addresses where there is a change in the identity of those behind a corporation 416
Tax Topics - Income Tax Act - Section 256 - Subsection 256(5.1) lender to distressed corporation may have de facto control 118

EYEBALL NETWORKS INC. v. HER MAJESTY THE QUEEN, 2021 FCA 17

Pursuant to a conventional s. 55(3)(a) spin-off transaction, a company (“Oldco”) spun off one of its two businesses to a “Newco,” also...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) s. 160 did not apply to s. 55(3)(a) where each step involved a value-for-value exchange (including the cross-share redemptions) 565
Tax Topics - General Concepts - Effective Date price adjustment clause eliminated any possible value discrepancy between the FMV of the transferred property and the consideration therefor 118
Tax Topics - Income Tax Act - Section 84 - Subsection 84(9) a shareholder whose shares have been redeemed has provided valuable consideration therefor by surrendering its shares 136
Tax Topics - General Concepts - Fair Market Value - Other note supported only by pref, then note, of a sister had full FMV 132

Louie v. Canada, 2019 FCA 255

From May 15 to October 17, 2009, the taxpayer directed 71 “swaps” under which TSX-listed shares were transferred between her self-directed...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) - Subparagraph (b)(i) advantages generated in Year 1 from swap transactions continued to produce indirect advantages thereafter 547
Tax Topics - Income Tax Act - Section 207.06 - Subsection 207.06(2) concerns about future value increases are intended to be addressed by relief provisions 384
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) taxpayer was directing mind in transactions involving an arm’s length trustee 137

2763478 Canada Inc. v. Canada, 2018 FCA 209

An individual did not sell his shares of an operating company (Groupe AST) directly to a third-party purchaser, but instead transferred them on a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) not each transaction in series effecting an estate freeze had that objective 417
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) value shift transactions that permitted the absorption of a real gain by a paper loss abused the basic capital gains regime 317
Tax Topics - Income Tax Act - Section 245 - Subsection 245(6) individual allegedly suffering double taxation re s. 245(2) denial of capital loss of his corporation failed to apply under s. 245(6) within 180 days 327

Groupe Honco Inc. v. Canada, 2014 DTC 5006, 2013 FCA 128, aff'g 2013 DTC 1032 [at 149], 2012 TCC 305, infra

On January 13, 1999, a newly-incorporated corporation ("New Supervac") was leased the assets of an unrelated corporation ("Old Supervac"), coupled...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 83 - Subsection 83(2.1) two or three main purposes 73

Copthorne Holdings Ltd. v. Canada, 2012 DTC 5006 [at 6536], 2011 SCC 63, [2011] 3 S.C.R. 721

The taxpayer's shareholders circumvented the rule in s. 87(3), which required that the paid-up capital ("PUC") of a subsidiary corporation...

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Words and Phrases
in contemplation of
Locations of other summaries Wordcount
Tax Topics - General Concepts - Stare Decisis high threshold for reversing not met 193
Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit tax benefit illuminated by comparison to reasonable and simpler alternative 425
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy of s. 87(3) is to avoid preservation of PUC on parent and sub amalgamation 372
Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius implied exclusion principle 109

Toronto-Dominion Bank v. Canada, 2011 DTC 5125 [at 6061], 2011 FCA 221, [2011] 6 CTC 19

A transitional provision in the Act provided that the old s. 55(1) would apply to a transaction if it were "part of a series of transactions,...

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Lipson v. Canada, 2007 DTC 5172, 2007 FCA 113, aff'd 2009 DTC 5015 [at 5528], 2009 SCC 1

The taxpayer's wife ("Jordanna") borrowed $562,500 from the Bank of Montreal under an interest-bearing demand promissory note in order to purchase...

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Words and Phrases
series of transactions

Canada Trustco Mortgage Co. v. Canada, 2005 SCC 54, [2005] 2 S.C.R. 601, 2005 DTC 5523

In the course of a general discussion of the expression "series of transactions" apearing in ss. 245(2) and (3), the Court noted (at para. 26)...

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Words and Phrases
contemplation
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit tax benefit if taxable income reduction or on basis of comparison to alternative 132
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy of CCA provisions relied on cost irrespective of risk mitigation 211
Tax Topics - Statutory Interpretation - Certainty 131
Tax Topics - Statutory Interpretation - Ordinary Meaning primacy to ordinary meaning if unequivocal 96

OSFC Holdings Ltd. v. Canada, 2001 DTC 5471, 2001 FCA 260

Although the "common law" meaning of a series of transactions was transactions each of which is pre-ordained to produce a final result, s. 248(10)...

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Words and Phrases
series of transactions
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) significant disparity between tax benefit and commercial return from transaction 263
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy against corporate loss trading 229
Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. 70
Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions deeming v. definition provisions 46

See Also

Total Energy Services Inc., 2024 TCC 12

In September, 2007, most of the equity of an insolvent public corporation (“Biomerge”) in CCAA proceedings was acquired by the company...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) an acquisition of an insolvent public company with losses by a SIFT trust was an abuse of s. 111(5) 367
Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) s. 256(7)(c.1) merely clarified that the acquisition of a public company lossco by a SIFT trust was an abuse of s. 111(5) 326

Agence du revenu du Québec v. Custeau, 2020 QCCA 1496

When a family small business corporation (the “Corporation”) was in financial difficulty, a Quebec regional development fund and affiliated...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) no avoidance transaction where subsequent utilization of PUC created with PUC-averaging was not contemplated 404

3295036 Canada Inc. v. Agence du revenu du Québec, 2020 QCCA 1435

In October 1996, a Quebec-taxpayer company (“329”) acquired public company shares from its parent, on two separate days, in “Quebec...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) subsequent years could be reassessed to deny the carryforward of a capital loss reported in a statute-barred year 216

The Trustees of the Morrison 2002 Maintenance Trust & Ors v Revenue and Customs, [2019] EWCA Civ 93

A scheme for the avoidance by three trusts (the “Scottish Trusts”) of capital gains tax on the sale of a bloc representing approximately 2% of...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Tax Avoidance 250

3295036 Canada Inc. v. Agence du revenu du Québec, 2018 QCCQ 8100, aff'd 2020 QCCA 1435

On two days in October 1996, the parent company (“Marjad”) of the taxpayer (“3295036”) transferred shares of two public companies, whose...

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Louie v. The Queen, 2018 TCC 225, rev'd in part on "advantage" issue (for subsequent years) 2019 FCA 255

From May 15 to October 17, 2009, the taxpayer directed 71 “swaps” under which TSX-listed shares were transferred between her self-directed...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.05 - Subsection 207.05(3) holder rather than trustee liable for advantage tax 148
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Advantage - Paragraph (b) - Subparagraph (b)(i) temporal limitation placed on the advantages considered to arise from TFSA swap transactions 643
Tax Topics - General Concepts - Fair Market Value - Shares use of price range for share valuation was inappropriate where there was a second-by-second market 185

Cameco Corporation v. The Queen, 2018 TCC 195, aff'd 2020 FCA 112

Owen J found (at para. 704) that the concept of a “series” under s. 247(2) should be interpreted narrowly in order to not make it impossible...

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Words and Phrases
series of transactions
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) having a Swiss/Lux subsidiary enter into long-term purchase contracts at a somewhat fixed price with third parties and the taxpayer did not engage s. 247(2) 708
Tax Topics - General Concepts - Sham transactions that were not factually misrepresented were not a sham 254
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(1) - Transaction meaning of "arrangement" and "event" 153

Loblaw Financial Holdings Inc. v. The Queen, 2018 TCC 182, rev'd on s. 95(1) - investment business - (a) (arm's length conduct) grounds 2020 FCA 79, in turn aff'd 2021 SCC 51

An issue addressed obiter by C Miller J was whether the renewal by the Barbados subsidiary (GBL) of the taxpayer of its international banking...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1.11) requirement met where Crown knew the nature and quantum of the dispute 269
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Foreign Bank CFA qualified as a foreign bank since it was licensed under Barbados law as an international bank 123
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Business - Paragraph (a) Barbados-licensed international bank, which used Loblaw funding to invest responsively to Loblaw considerations, conducted an offside non-arm’s length business 429
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Business - Paragraph (c) employee equivalents was reduced by employee time described in s. 95(2)(b) 290
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Foreign Exchange short-term debt securities were inventory because they were the raw material for generating swap income 130
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.01) - Paragraph 152(4.01)(a) - Subparagraph 152(4.01)(a)(ii) GAAR is generally a separate matter rather than being subsumed in the allegedly-misused substantive provision 208
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) application of GAAR required the occurrence of an avoidance transaction (or series) in non-statute-barred years and the relevant previous year’s avoidance transaction did not occur as part of the series 512
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) use of Barbados sub to engage in proprietary trading for Canadian parent misused the foreign bank exemption, whose purpose was promoting international competitiveness 336
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(l) purpose of s. 95(2)(l) exception was to permit non-resident subsidiaries of Canadian banks and dealers to compete internationally 190

Oxford Properties Group Inc. v. The Queen, 2016 TCC 204, rev'd 2018 FCA 30

A corporation (“BPC”), which was mostly owned by a Canadian pension fund (“OMERS”), obtained the agreement of a predecessor of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) no abuse in using 88(1)(d) bump to avoid s. 100 after 3-year s. 69(11) period 557
Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) purpose not to tax underlying recapture on subsequent LP unit sale 431
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) purpose: to push down ACB of shares of sub to qualifying non-depreciable property 489
Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) subsequent amendment shed light on scope of previous version 107
Tax Topics - Income Tax Act - Section 100 - Subsection 100(1) S. 100 operates only on outside basis gain 290
Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) Parliament provided safe harbour for sales after 3 years 204
Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) - Paragraph 98(3)(c) purpose: to preserve high outside basis through push down 293

Pièces automobiles Lecavalier Inc. v. The Queen, 2014 DTC 1126 [at 3319], 2013 TCC 310

A Canadian subsidiary ("Greenleaf") of Ford U.S. paid down to $9,750,000 (including accrued interest) a debt of $24,369,439 (plus accrued...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence Canadian tax accountant's testimony on US tax consequences accorded little weight 152
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) debt-paydown transactions were avoidance transactions 268
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) avoidance of debt forgiveness rules was abusive 277

MIL (Investments) S A v. The Queen, 2006 DTC 3307, 2006 TCC 460, aff'd 2007 FCA 236

In March 1993 an individual ("Boulle") transferred his shares of a Canadian public junior exploration company ("DFR") to the taxpayer, which was a...

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Canutilities Holdings Ltd. v. The Queen, 2003 DTC 1029 (TCC), rev'd in part 2004 DTC 6475, 2004 FCA 234

Normal course dividends paid by the taxpayers were not paid in contemplation of transactions in which their common shares of a public company were...

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Les Placements E&R Simard Inc. v. The Queen, 97 DTC 1328 (TCC)

On September 10, 1988, the taxpayer transferred its assets to a subsidiary ("Alimentation 1988") in consideration for a demand promissory note and...

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Craven v. White, [1988] BTC 268 (HL)

Lord Jauncey stated:

"If it were appropriate to prepare a formula defining 'composite transaction' in the light of the passages in the speeches in...

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Words and Phrases
series of transactions
Locations of other summaries Wordcount
Tax Topics - General Concepts - Tax Avoidance 203

Administrative Policy

2024 Ruling 2023-0989121R3 F - Internal reorganization - 55(3)(a) and 55(3.01)(g)

Before Opco (whose shares were held by three unrelated individuals, Messrs. A, B and C) was to effect a real-estate spin-off to a new sister...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.01) - Paragraph 55(3.01)(g) transfer of real estate to separate Realtyco beneath a newly-formed Holdco 605
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) 2 unrelated individuals were the settlors for each other’s family trust 162
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) s. 55(3.01)(g) applied to the transfer (fresh after an estate freeze) by unrelated shareholders of Opco to a new Holdco, with an Opco realty spin-off to a new Realtyco sister 274

7 October 2022 APFF Roundtable Q. 14, 2022-0942191C6 F - Safe-income determination time

A purchaser incorporated a Buyco to acquire the assets of the vendor corporation and then, a few weeks later, the net asset proceeds on the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Safe-Income Determination Time incorporation of Buyco may trigger safe-income determination time 383
Tax Topics - 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 307

May 2019 CPA Alberta CRA Roundtable, ITA Session – Q.7

What factors would CRA typically review to assess whether certain transactions are part of the same series; and how important is it that...

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2018 Ruling 2017-0683941R3 - Split-up transactions

Mother along with an arm’s length business associate (“Investor”) wanted to use some of the assets of the family business corporation...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(ii) split-up to resolve business differences between daughter and mother, with relevant significant investment of arm's length investor in further transferee company 758
Tax Topics - Income Tax Act - Section 186 - Subsection 186(1) - Paragraph 186(1)(b) year-end established in middle of cross-redemptions to avoid circularity 220

29 October 2013 External T.I. 2013-0489771E5 F - Internal Reorganization - 55(3)(a)

Three brothers held Corporation A as to 1/3 each and their mother’s estate held all of Corporation B. Following the distribution of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.2) - Paragraph 55(3.2)(d) s. 55(3.2)(d) application to estate distribution of corporation to 3 sibling beneficiaries does not deem them to be related to each other 248
Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) - Subparagraph 55(3)(a)(v) relief under s. s. 256(7)(a)(i)(C) or (D) is relevant to s. 55(3.1)(b)(ii), but not to ss. 55(3)(a)(i) to (v) 227

24 October 2012 Internal T.I. 2012-0456711I7 F - Inadmissibilité à la déduction pour GC

Mr. A effected an estate freeze by converting his Class "AA" shares of Opco into Class "F" Opco shares. S. 51(2) has been applied to determine the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(7) - Paragraph 110.6(7)(b) potential application of s. 110.6(7)(b) where s. 51(2) applied 268
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.2) no retroactive adjustment of capital gains exemption where claimed before the normal reassessment period 192

17 November 2000 External T.I. 1999-0008585 - Winding-up

"A particular transaction will be part of a series of transactions if that transaction is logically and reasonably connected to another...

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23 August 1991 T.I. (Tax Window, No. 8, p. 21, ¶1409)

A preliminary transaction will form part of a series of transactions that includes subsequent transactions if at the time of the preliminary...

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9 May 1990 Meeting (October 1990 Access Letter, ¶1474)

"If at the time of the 'butterfly' reorganization the shareholders had formed the intention to sell their shares, and their shares are eventually...

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3 November 89 T.I. (April 90 Access Letter, ¶1172)

"A preliminary transaction will form part of the series of transactions or events determined with reference to subsection 248(10) if, at the time...

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Articles

Doron Barkai, Alexander Demner, "Dealing with New Subsection 55(2): Issues and Strategies", 2016 Conference Report (Canadian Tax Foundation), 6:1–56

Avoidance of exclusion if Pt. IV refund not received as part of the series (pp. 6:27-29)

[A]ny dividend paid from Holdco to the shareholder needs...

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Justice Marshall Rothstein, "An Overview of the Supreme Court of Canada", Bulletin for International Taxation (IBFD), January/February 2016, p. 20.

Resort to foreign judgments (p. 25)

An example concerns the interpretation of a "series of transactions" under a general anti-avoidance rule...

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Benjamin Alarie, Julia Lockhart, "The Importance of Family Resemblance: Series of Transactions After Copthorne", Canadian Tax Journal (2014) 62:1, 273-99.

Extension of common-law series (pp. 76-77)

… Kandev et al. argue that the purpose of subsection 248(10) is merely to bring into the Act the...

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David M. Williamson, Michael H. Manly, "Subsection 69(11) - Unexpected Problems from Inappropriate Positions", Corporate Structures and Groups, Vol. V, No. 4, 1999, p. 285.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 69 - Subsection 69(11) 0

Thivierge, "Emerging Income Tax Issues", 1993 Conference Report, c. 4

J. Tiley, "Series of Transactions", 1988 Conference Report, c.8.

Subsection 248(16) - Goods and services tax — input tax credit and rebate

Administrative Policy

2 November 2021 External T.I. 2021-0898151E5 - GST/HST Quick Method of Accounting

Regarding the income tax effect of using the Quick Method of Accounting for the GST/HST on purchases (the “Quick Method”), CRA first noted...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) use of the GST/HST Quick Method generally results in s. 12(1)(x) inclusions, but also increases expense deductions 126

2 April 2014 External T.I. 2012-0473151E5 F - Limitation du coût de location d'un véhicule

Are amounts of recovered GST and QST respecting the lease of a vehicle to be considered “reimbursements” under element E in ss. 67.3(c) and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 67.3 GST ITCs included under element E of formula 176

27 November 2014 External T.I. 2013-0503861E5 F - Application du paragraphe 248(16)

Where a building drop-down under s. 85(1) generates an ITC to the transferor under ETA s. 193, such ITC does not reduce the UCC of the property...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) - Paragraph 85(1)(e) ETA s. 193 ITC generated on drop-down does not reduce UCC at that time 193

27 November 2003 Internal T.I. 2002-0180587 F - Mauvaise créance et taxes de vente

The accounts receivable of a taxpayer include GST and QST that is collectible by it on those sales. Before indicating that the write-off of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(i) no bad debt deduction for write off of GST/QST 158
Tax Topics - Excise Tax Act - Section 224 remittance of tax by supplier results in subrogation of the Crown’s claim for the tax 215

5 December 2002 Internal T.I. 2002-0155187 F - DEPENSES PERSONNELLES

A taxpayer incurred what it viewed as a currently deductible expense of $100,000 and paid GST and QST thereon of $7,000 and $8,000, for which it...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(hh) repayment of ITRs would result in deduction under s. 20(1)(hh)(i) or (ii) depending on whether or not an s. 12(2.2) election had been made 232

3 January 1992 T.I. (Tax Window, No. 15, p. 24, ¶1683)

A cash-basis taxpayer will be considered to have received a GST input tax credit in the period for which the refund is claimed on the GST return.

19 August 1991 Memorandum (Tax Window, No. 8, p. 12, ¶1395)

A GST input tax credit is considered to be received or credited in the reporting period in which the claim was made rather than the reporting...

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22 March 1991 T.I. (Tax Window, No. 1, p. 7, ¶1164)

A GST rebate which is claimed by a partner of a partnership at the end of the 1991 calendar year in respect of expenses incurred by him personally...

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Paragraph 248(16)(a)

Subparagraph 248(16)(a)(i)

Administrative Policy

30 March 2011 External T.I. 2010-0390591E5 F - Cotisation spéciale

In the course of discussing the deductibility of an assessment made of the taxpayer by the other co-owners of a commercial condo complex to cover...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Payment & Receipt amounts paid by set-off are both paid even though no movement of funds 274
Tax Topics - Income Tax Act - Section 9 - Timing amounts assessed against the taxpayer by co-owners not deductible until expended on or in the business 219

Subsection 248(18) - Goods and services tax — repayment of input tax credit

Administrative Policy

19 August 1991 Memorandum 911368(E)

Where the taxpayer was assessed in July 1993 to deny an input tax credit, appealed successfully to the Tax Court but with the Minister then...

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Subsection 248(20) - Partition of property

Administrative Policy

9 June 2015 External T.I. 2014-0554381E5 F - Copropriété par indivision - partage de biens

Mr A held land used by him in farming in co-ownership with his brother. Following a partition and cessation of farming, Mr A became the sole owner...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) partition did not reset original date of acquisition of property in co-ownership 147

1 September 2010 External T.I. 2009-0338641E5 - Partition of property

In course of a general discussion CRA stated:

Subsection 248(20) of the Act applies where the fair market value of the separate piece of property...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) one property if two legal lots (not necessarily contiguous) acquired under one deed 230
Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) - Paragraph 248(21)(c)) single property requirement can be satisfied by consolidating then partitioning 76

25 September 2000 External T.I. 2000-0038595 - PARTITION OF PROPERTY

"In a situation where more than one property is acquired under one deed, such properties would be considered to be one property for purposes of...

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28 October 2002 External T.I. 2002-0134785 F - Partitioning of Shares

A partnership, holding investments in inter alia public companies was dissolved such that each CCPC received a pro rata undivided interest in each...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) s. 248(21) could apply to partitioning a share if the corporation could issue fractional shares on the partition satisfying the FMV test, and similarly for partitioning MFT units (viewed as a single property) 301
Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) partners not permitted to receive divided interest in shares on s. 98(3) wind-up 116
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property interest in trust is a single property even if held as units 90

30 November 1995 Ruling 9618173 - PARTITION OF SHARES IN A PARTNERSHIP

A partnership holding publicly-traded shares and limited partnership units was to be wound-up under s. 98(3), with the shares and units (while...

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27 April 1998 Internal T.I. 9804567 - PARTITION OF A MILK QUOTA

The partition of a jointly owned non-real estate asset, such as a milk quota, could be accomplished under either s. 248(20) or (21) of the Act...

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23 December 1992 T.I. (Tax Window, No. 27, p. 20, ¶2341) [partition of non-adjacent properties]

If non-adjacent parcels of land are acquired at one time and under one deed, they will be considered as property that can be partitioned under s....

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24 February 1992 Memorandum (Tax Window, No. 13, p. 17, ¶1622)

Where an undivided interest in partnership property is distributed to each partner in accordance with s. 98(3), any partition of property which is...

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23 October 1991 T.I. (Tax Window, No. 12, p. 18, ¶1552)

Where a co-owner exchanges an undivided interest in a property for an undivided interest in each subdivided parcel, followed by an exchange of the...

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Articles

A. J Oakley, "Chapter 8: Co-ownership", A Manual of the Law Of Real Property by Robert Megarry, 8th Ed., Sweet & Maxwell, 2002

Partition at common law (p. 327)

Joint tenants and tenants in common have always been able to make a voluntary partition of the land concerned if...

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Subsection 248(21) - Subdivision of property

Administrative Policy

2019 Ruling 2018-0787181R3 - Minority owners and Partition of Property

Background

A development property (the “Property”) that is divisible into various parcels is held in co-ownership by the two Taxpayers and the...

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2011 Ruling 2011-0408781R3 - Partition of Property - Land and Buildings

A rental property comprised of land and three buildings, is beneficially owned by three co-owners, holding their interests as capital property. S....

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1 September 2010 External T.I. 2009-0338641E5 - Partition of property

CRA indicated that it considers there to be a single property for s. 248(21) purposes if separate lots (e.g., two lots separated by Crown...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) - Paragraph 248(21)(c)) single property requirement can be satisfied by consolidating then partitioning 76
Tax Topics - Income Tax Act - Section 248 - Subsection 248(20) partial disposition under s. 248(20) if s. 248(21) not satsified 129

30 January 2009 External T.I. 2008-0287541E5 F - Décès - actions détenues en indivision

On the death of Y, his co-ownership interest in shares held with his spouse (X) passed to a spousal trust for her following the settling of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) s. 70(6) inapplicable if partition of bequeathed shares between death and distribution to spousal trust 138

7 October 2005 Roundtable, 2005-0141151C6 F - Lotissement de biens

How will the CRA analyze the concept of a subdividing of a single or multiple buildings? CRA responded:

Before concluding that subsection 248(21)...

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8 August 2005 External T.I. 2005-0145251E5 - Partition of Property

The summary states:

Can a property with two buildings on it be partitioned so that each former co-owner receives one building?...No. The buildings...

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2003 Ruling 2003-0033363 - PARTNERSHIP WIND-UP

A professional partnership in the health field winds up its operations with a view to electing under s. 98(3), on the winding-up each partner...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) transfer of undivided interests in cash, WIP and goodwill followed by partition of goodwill 378

2003 Ruling 2003-0009513 - PARTNERSHIP - WIND-UP

A master partnership invests in a lower-tier operating partnership which, in turn, transfers a business acquired by it to a newly-formed taxable...

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28 October 2002 External T.I. 2002-0134785 F - Partitioning of Shares

A partnership, holding 25 investments in public companies and mutual fund trust (MFT) units, was dissolved such that each CCPC received a pro rata...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 98 - Subsection 98(3) partners not permitted to receive divided interest in shares on s. 98(3) wind-up 116
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property interest in trust is a single property even if held as units 90
Tax Topics - Income Tax Act - Section 248 - Subsection 248(20) s. 248(20) might apply if a partition results in the issuance of whole shares 177

1998 Ruling 9730823 - CONSOLIDATION THEN PARTITION

Five individuals own five parcels in co-ownership. They will consolidate the five parcels into one parcel, then partition that one parcel into...

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17 September 1996 External T.I. 9625255 - ACB OF PARTITIONED INTEREST.

Where three parties jointly own equal undivided interests in a property, and the property is subdivided into three lots with each party having...

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12 July 1995 External T.I. 9428785 - GENERAL SCHEME OF PARTITION

After a detailed description by the correspondent of the manner in which the partition of real property in B.C. typically is undertaken, RC...

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1994 A.P.F.F. Round Table, Q. 31

"The conditions for applying subsection 248(21) ... cannot be met where the property that is the subject of a parition is an undivided interest in...

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27 January 1992 Income Tax Severed Letter 9134825 - Partition of Property

S.248(21) generally will apply where a piece of land has been subdivided into several parcels and the subdivided parcels are then partitioned...

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8 January 1992 T.I. (Tax Window, No. 15, p. 17, ¶1686)

The rules in s. 248(21) could apply where there is a stratification of a condominium building and a subsequent proportionate distribution of the...

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Articles

McMullen, "Tax Considerations in the Reorganization of Partnerships", 1994 Corporate Management Tax Conference Report, c. 6.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 97 - Subsection 97(2) 0

Paragraph 248(21)(c))

Administrative Policy

1 September 2010 External T.I. 2009-0338641E5 - Partition of property

In the course of a discussion indicating that it considers there to be a single property for s. 248(21) purposes if separtate lots (e.g., two lots...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) one property if two legal lots (not necessarily contiguous) acquired under one deed 230
Tax Topics - Income Tax Act - Section 248 - Subsection 248(20) partial disposition under s. 248(20) if s. 248(21) not satsified 129

9 May 2007 External T.I. 2006-0205741E5 - partition of property

Three equal co-owners of a single parcel subdivide a portion of that original parcel into 150 lots and then partition so that each is the sole...

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11 August 1997 External T.I. 9626335 - WHETHER MULTIPLE PROPERTIES CONSIDERED "A PROPERTY?

Three adjacent parcels of land are acquired at the same time by two arms length persons, each holding an undivided interest in all three parcels. ...

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Subsection 248(22) - Matrimonial regimes

Administrative Policy

Tax Professionals Mini Round Table - Vancouver - Q. 32 (March 1993 Access Letter, p. 110)

S.248(22) and (23) are not restricted in their application to the ownership of property under the matrimonial regimes in the Province of Quebec.

Subsection 248(23)

Administrative Policy

23 December 2003 External T.I. 2003-0008145 F - TRANSFERT ENTRE EX-CONJOINT

A corollary relief agreement, subsequently ratified by the divorce judgment, declared that Madame owned a chalet to which Monsieur renounced any...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 73 - Subsection 73(1.01) - Paragraph 73(1.01)(b) property transferred in settlement of rights arising out of marriage also includes property transferred in settlement of rights arising out of a matrimonial regime 278
Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(b) one-sided adjustments under ss. 69(1)(b) and (a) 108

Subsection 248(23.1)

Paragraph 248(23.1)(a)

Administrative Policy

7 October 2022 APFF Roundtable Q. 13, 2022-0942181C6 F - Transfer of an RRSP at death

The estate of Mr. X intends to distribute $100,000 from his RRSP (which had not matured at the time of his death) in settlement of the claim...

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Locations of other summaries Wordcount
Tax Topics - 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 168

6 June 2017 External T.I. 2015-0617331E5 F - TFSA - Exempt Contribution

The definition of “survivor payment” in s. 207.01(1) - exempt contribution – para. (b) references a payment to the survivor directly or...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 207.01 - Subsection 207.01(1) - Exempt Contribution - Paragraph (b) payment of family-law debt out of TFSA to surviving spouse would occur as a consequence of the deceased’s death 316
Tax Topics - Income Tax Act - Section 248 - Subsection 248(8) - Paragraph 248(8)(a) legacy of residue (which included the residence) could be satisfied with TFSA of deceased 101

Paragraph 248(23.1)(b)

Administrative Policy

8 October 2010 Roundtable, 2010-0371951C6 F - Transfert d'un REER ou d'un FERR au décès

When Monsieur died in July 2010, his surviving wife (Madame) had a RRIF of $10,000. Monsieur had never had an RRSP or RRIF. The questioner...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146.3 - Subsection 146.3(6) s. 146.3(6) does not apply as a result of death of non-annuitant spouse 149

Subsection 248(24) - Accounting methods

Administrative Policy

11 October 2005 External T.I. 2005-0148281E5 F - Déductibilité de dépenses

In finding that accounting fees related to the preparation by a parent of consolidated financial statements for the group were generally...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Legal and other Professional Fees accounting fees in preparing consolidated financial statements generally deductible 75
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Improvements v. Repairs or Running Expense periodic (every 3 years) required actuarial valuations were currently deductible 83

7 August 1991 T.I. (Tax Window, No. 7, p. 18, ¶1386)

The enactment of s. 248(24) does not affect the computation of safe income under s. 55(2)

Subsection 248(25) - Beneficially interested

Cases

Canada v. Propep Inc., 2010 DTC 5088 [at 6882], 2009 FCA 274

The taxpayer was owned by another corporation (9059) which, in turn, was owned by a Quebec trust whose first-ranking beneficiary was 9059, and...

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Administrative Policy

28 June 2017 External T.I. 2016-0653921E5 F - Beneficiary/person beneficially interested

S. 70(3) provides that the rights and things election under s. 70(2) is unavailable if the rights or things (the “Property”) have been...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 70 - Subsection 70(3) a testamentary trust could be a beneficiary or beneficially interested in an estate 104

10 October 2014 APFF Roundtable Q. 4, 2014-0538231C6 F - 2014 APFF Roundtable, Q. 4 - Beneficially interested

Can a legatee by particular title referred to in s. 808 of the Quebec Civil Code be considered a person beneficially interested pursuant to...

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10 October 2014 APFF Roundtable, 2014-0538021C6 F - Meaning of beneficiary

In Fiducie Famille Salammbô c. Ville de Montréal (2011 QCCQ 11322), a mutations tax case, the Court found that potential non-designated...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(ii) beneficiary under s. 55(5)(e)(ii) includes beneficially interested under s. 248(25)(a) 284

2 November 2004 External T.I. 2004-0063491E5 F - Droit de bénéficiaire et résidence principale

The only two beneficiaries of a discretionary personal trust are the two adult children of the family. However, the trust deed provides that in...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 54 - Principal Residence - Paragraph (c.1) - Subparagraph (c.1)(ii) parents could be specified beneficiaries even if they would take only on the intestacy of a named beneficiary or if under the trust deed they had a habitation right 214

26 June 2012 External T.I. 2011-0417391E5 F - Bien remis à une fiducie

Where the trustees of a Quebec inter vivos trust have the power to appoint beneficiaries including a testamentary trust, does the testamentary...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust being a contingent beneficiary of an inter vivos trust disqualified a testamentary trust as such 253

Articles

Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79

Proprep contrary to presumption of consistent expression (pp. 28:11-12, 13)

Pursuant to the presumption of consistent expression, the expanded...

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Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Beneficiaries Resident in Canada", Chapter 4 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.

Meaning of right “as a beneficiary” (pp. 290-1)

[T]he term "beneficially interested" is defined exceptionally broadly in subsection...

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Michael Goldberg, "Not Quite Chicken Soup – Part II: Are Powers to Add and Remove Beneficiaries Safe for Canadian Family Trust Precedents", Tax Topics, Number 2175, November 14, 2013, p.1.

Effect of power to add and remove beneficiaries (PARB) (p. 2)

Does the inclusion of a PARB mean that pursuant to paragraph (1) of this definition...

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Paragraph 248(25)(a)

Administrative Policy

15 June 2021 STEP Roundtable Q. 7, 2021-0879021C6 - Subsection 107(2)

Having regard to the approaching 21-year anniversary, the trustees of a resident discretionary family trust of which only the children are...

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Words and Phrases
beneficiary
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) a trust with children beneficiaries could not roll-out property under s. 107(2) to a trust for the benefit of those children 271

8 June 2018 Internal T.I. 2017-0683021I7 - Assignment of capital interest in a trust

Before finding that the assignment of an interest in a personal trust to a company that was not named as a beneficiary in the trust indenture was...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(13) purported drop-down of trust interests to an excluded beneficiary resulted in s. 104(13) inclusions to transferors 343
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(5) purported drop down of trust interests by non-resident beneficiaries to ULC was ineffective so that s. 107(2.1) applied to subsequent purported asset distribution to ULC 192
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) potential application of s. 56(2) to income distribution to non-qualifying transferee of trust interest 203
Tax Topics - Income Tax Act - 101-110 - Section 105 - Subsection 105(1) potential application of s. 105(1) to income distribution to non-qualifying transferee of trust interest 273

Articles

Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79

Scope of s. 248(25)(a) (p. 28:9)

A person or partnership may be beneficially interested in a particular trust without being directly beneficially...

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Paragraph 248(25)(b)

Subparagraph 248(25)(b)(ii)

Articles

Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79

Potentially redundant effect of s. 248(25)(b)(ii) (pp. 28:9-10)

Paragraph 248(25)(b) substantively extends the concept of being beneficially...

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Subsection 248(25.1) - Trust-to-trust transfers

Administrative Policy

10 February 2003 External T.I. 2003-014702

An election made by the former trustees, including an election under s. 259(3), will continue to be valid following a trust-to-trust transfer...

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Subsection 248(25.3)

Administrative Policy

19 January 2005 External T.I. 2004-0075601E5 F - Fiducie de fonds commun de placement

CRA noted that where a mutual fund unitholder received a distribution of interest income, a taxable capital gain and of the non-taxable portion of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) no ACB reduction from distribution of ordinary income or capital gain (cf. ROC distribution) irrespective whether effected as cash or unit distribution 93

Subsection 248(25.4)

Articles

Elie Roth, Tim Youdan, Chris Anderson, Kim Brown, "Taxation of Beneficiaries Resident in Canada", Chapter 4 of Canadian Taxation of Trusts (Canadian Tax Foundation), 2016.

Example of sale of ½ of capital interest plus ½ of right to enforce income payment (p.271)

[A]ssume that a beneficiary's capital interest in a...

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Subsection 248(26) - Debt obligations

Cases

Imperial Oil Ltd. v. Canada, 2004 DTC 6702, 2004 FCA 361, rev'd 2006 SCC 46

S.248(26) had no application to the issuance of a U.S.-dollar debenture by the taxpayer because there was no doubt about the date upon which the...

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Administrative Policy

20 May 2014 External T.I. 2013-0516121E5 F - Debt forgiveness

In finding that s. 80 would not apply to the settlement under Part III of the Bankruptcy and Insolvency Act of a debt for unremitted GST and QST,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) BIA settlement of GST interest and penalties included under s. 12(1)(x)(iv) 157
Tax Topics - Income Tax Act - Section 12 - Subsection 12(2.2) s. 12(1)(x)(iv) inclusion from BIA settlement of GST interest and penalties could be offset against related expense 157
Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation BIA settlement of unremitted GST interest 127
Tax Topics - Income Tax Act - Section 9 - Forgiveness of Debt BIA settlement of unremitted GST on sales was on capital account 82

Subsection 248(27)

Articles

Marc André Gaudreau Duval, Michael N. Kandev, "Foreign Affiliate Issues in Troubled Times", International Tax (Wolters Kluwer CCH), No. 112, June 2020, p. 1

Potential application of s. 248(27) to debt put to two uses (p. 3)

[R]espect[ing] debt partly used for the purposes of earning FAPI and partly...

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Subsection 248(28) - Limitation respecting inclusions, deductions and tax credits

Cases

Tusk Exploration Ltd. v. Canada, 2018 FCA 121

The taxpayer, a Canadian exploration company, unsuccessfully argued that it was not subject to Part XII.6 tax on Canadian exploration expenses...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 211.91 - Subsection 211.91(1) Part XII.6 tax was payable on CEE purportedly renounced on a look-back basis to NAL shareholders 515
Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(a) double taxation can result from non-arm’s length transactions such as under s. 69(1) 301
Tax Topics - Income Tax Act - Section 66 - Subsection 66(12.6) only a PBC can renounce 61

Bakorp Management Ltd. v. Canada (National Revenue), 2016 FCA 74

After noting (at para. 23) that the interpretation advanced by the taxpayer would have the effect of generating the accrual of refund interest to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 187 - Subsection 187(2) overpayment of Part IV tax for a subsequent year did not cut off interest for its underpayment in the previous year before application of the overpayment by CRA 395

Imperial Oil Ltd. v. Canada, 2004 DTC 6702, 2004 FCA 361, rev'd 2006 SCC 46

After finding that the taxpayer was entitled to deduct 75% of the difference between the Canadian- dollar equivalent of a U.S. dollar debenture at...

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Holder v. Canada, 2004 DTC 6413, 2004 FCA 188

The taxpayer designated an elected amount of $50,010 in an election under s. 110.6(19) in respect of shares that were non-qualifying real property...

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Kruco Inc. v. The Queen, 2001 DTC 668 (TCC), aff'd 2003 FCA 284

A proposed adjustment of the Minister to the safe income of a corporation from which the taxpayer received a deemed dividend, which entailed the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) 81
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) safe income included phantom income mandated to be included in income by the ITA 208
Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. 81

MNR v. Chrysler Canada Ltd., 92 DTC 6346, [1992] 2 CTC 95 (FCTD)

S.4(4) precluded the value of shares being taxed as income from employment in both the year of transfer of the shares to a trust (under s. 7(1))...

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R. v. Inland Revenue Commissioners, ex parte Woolwich Equitable Buildings Society, [1990] BTC 490 (HL)

After referring (p. 500) to the "presumption against double taxation" and the "presumption that income tax, being an annual tax is payable only on...

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Robertson v. The Queen, 90 DTC 6070, [1990] 1 CTC 114 (FCA)

Before going on to find that the amount of a non-statutory stock option benefit effectively was taxable at the time of exercise, notwithstanding...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) only quantifiable benefit from non-s. 7 option grant arose at exercise time 218

Canadian Pacific Ltd. v. The Queen, 88 DTC 6265, [1988] 1 CTC 429 (FCA)

Mahoney J. suggested that it was contrary to the scheme of the Act for the taxpayer to receive $17.6 million as a tax-free grant toward the cost...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) 37

The Queen v. Thyssen Canada Ltd., 87 DTC 5038, [1987] 1 CTC 112 (FCA)

The denial (by virtue of s. 18(4)) of the deduction for interest paid by the taxpayer to a non-resident, where that interest was subject to...

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Bye v. Coren, [1985] BTC 7 (HC), aff'd [1986] BTC 330 (C.A.)

"There is ... no rule that the same sum cannot be subject to two separate taxes. Whether it is so subject is a matter of construction of the...

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Furniss v. Dawson, [1984] BTC 71 (HL)

An "element of double taxation exists whenever a shareholder sells at a profit his shares in a company which has itself realized a capital asset...

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The Queen v. Robichaud, 83 DTC 5265, [1983] CTC 195 (FCTD)

A husband and wife were unsuccessful in claiming each other as dependants.

Gillespie v. The Queen, 82 DTC 6334, [1982] CTC 378 (FCA)

The purpose of s. 63(4) (since repealed) was found to be preventing both a man and a woman from obtaining deductions from income for the same...

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Noranda Mines Ltd. v. The Queen, 82 DTC 6212, [1982] CTC 226 (FCTD), aff'd 85 DTC 5001, [1984] CTC 659 (FCA)

An argument that the phrase "taxable income earned in the year" should be interpreted as referring to taxable income before the deduction of any...

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IRC v. Garvin, [1981] 1 WLR 793 (HL)

It was stated, obiter, that "I can see a powerful argument being mounted to the effect that, if a receipt falls to be treated as income and taxed...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Estoppel 50

R. v. Malloney’s Studio Ltd., 79 DTC 5124, [1979] CTC 206, [1979] 2 S.C.R. 326

"Mutuality of tax treatment of parties to the same transaction, or even the avoidance of double taxation have never been principles with which...

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Quebec North Shore Paper Co. v. The Queen, 78 DTC 6426, [1978] CTC 628 (FCTD)

The court found that the Crown's method of computing the taxpayer's income during a year in which it changed its method of adjusting for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 10 - Subsection 10(2) 125

Perrault v. The Queen, 78 DTC 6272, [1978] CTC 395 (FCA)

The treatment of a single payment under different provisions of the Act as income in the hands of two taxpayers may result from an unfortunate...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) dividend satsified share purchase consideration 114
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) 48
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) business continued "on a reduced scale" 54

Denison Mines Ltd. v. Minister of National Revenue, 74 DTC 6525, [1974] CTC 737, [1976] 1 S.C.R. 245

Costs of removing ore were deductible in computing the taxpayer's profit. Since "no single disbursement can be reflected twice in the accounts",...

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F.S. Securities, Ltd. v. C.I.R. (1964), 41 TC 688 (HL)

"[D]ouble taxation in itself is not something which is beyond the power of the Legislature to provide for when constructing its tax scheme ......

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Minister of National Revenue v. Trans-Canada Investment Corporation Ltd., 55 DTC 1191, [1955] CTC 275, [1956] S.C.R. 49

In his dissenting reasons, Rand J., in finding that the intercorporate dividend deduction in s. 27(1) of the 1948 Act was not available to the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 112 - Subsection 112(1) dividend-received deduction flowed through an investment trust 115
Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius 39

See Also

101139810 Saskatchewan Ltd. v. The Queen, 2017 TCC 3

An individual (Case) held his 1/3 shareholding in a small business corporation through a personal holding company (8231) which also held 1/3 of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(b) s. 55(2) assessment of corporate tax on bad butterfly confirmed notwithstanding same accrued gain reported at individual shareholder level 489
Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(f) 55(5)(f) designation may be made after assessment under s. 55(2) 278

Létourneau v. The Queen, 2010 DTC 1098 [at 3020], 2009 TCC 614 (Informal Procedure)

By operation of 96(1.1)(b), which applies notwithstanding any other provision of the Act, "allowances" received by a retired partner from his...

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Beament et al. v. Minister of National Revenue, 70 DTC 6130, [1970] CTC 193, [1970] S.C.R. 680

In finding, in his concurring reasons for judgment, that the contractual right of beneficiaries of an estate to enforce an agreement for the...

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Consoltex Inc. v. R., 97 DTC 724, [1997] 2 CTC 2846 (TCC)

Bowman TCJ. found that because the cost of expenditure by the taxpayer on yarn qualified as SR&ED for purposes of s. 37 of the Act, those costs...

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Pezzelato v. The Queen, 96 DTC 1285 (TCC)

In obiter dicta, Bowman TCJ. accepted a submission that if the taxpayer were taxable under s. 80.4(1)in its 1988 taxation year in respect of...

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Attis v. MNR, 92 DTC 1128, [1992] 1 CTC 2244 (TCC)

The exclusion in s. 15(2) for payments made as part of a series of loans or other transactions and repayments does not apply where there is a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(2.6) no series of loans and repayments where practice of repaying shareholder advances out of dividends and bonuses 131

Pat Marcantonio v. Minister of National Revenue, 91 DTC 917, [1991] 1 CTC 2702 (TCC)

After finding that the Minister had properly reassessed the taxpayer to increase his income pursuant to s. 69(1)(a) by the amount of charges made...

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Administrative Policy

4 June 2024 STEP Roundtable, Q.2

A corporation pays wages to an individual employee who was also a shareholder and a portion of the wages is subsequently determined to be...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) s. 248(28) applied to avoid double taxation under s. 15(1) and s. 5 165
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.4) - Paragraph 15(1.4)(c) application of s. 15(1.4)(c) avoided where s. 5 inclusion to taxpayer 165

18 July 2018 Internal T.I. 2018-0766441I7 - Article XXIX(5) and 91(5)

A Canadian resident (and US citizen) had an agreement with the Canadian Competent Authority under Art. XXIX(5) of the Canada-US Treaty, by virtue...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 91 - Subsection 91(5) revocation of a Treaty S Corp. agreement with CASD resulted in double taxation of the S Corp income when now dividended to Canada 363
Tax Topics - Treaties - Income Tax Conventions - Article 29 agreement with CASD terminated when S Corp. ceased to be fiscally transparent 207

2016 Ruling 2016-0661071R3 - Whether s. 80 or s. 143.4 applies

CRA found that, given that s. 80 applied in year of forgiveness of unpaid interest under a CCAA Plan, and in light of the rule of statutory...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 143.4 - Subsection 143.4(4) s. 80 rules prevailed in a CCAA compromise over the contingent amount (s. 143.4) rules 320
Tax Topics - Income Tax Act - Section 143.4 - Subsection 143.4(2) s. 80 prevailed over s. 143.4 110

4 March 2015 External T.I. 2014-0562151E5 F - Frais de psychothérapie – dépense d'entreprise

After finding that psychotherapy expenses potentially could be deducted in computing income of a professional practice, CRA stated:

The fact that...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose “but for” test applied to determine deductibility/potentially creditable item can instead be expense 188

10 October 2014 APFF Roundtable Q. 21, 2014-0538091C6 F - 2014 APFF Roundtable, Q. 21 - Impact of the Descarries Case

CRA indicated respecting any potential double taxation arising from the applicability of both s. 84(2) and (3) to a surplus stripping transaction...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) Descarries failed to recognize scheme against indirect surplus stripping 750
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) Descarries failed to recognize breadth of s. 84(2) 572

30 October 2014 External T.I. 2013-0488881E5 - Upstream Loan

As a result of a wind-up of a 2nd tier FA following a s. 90(6) loan to Canco, there technically would be a double income inclusion to Canco...

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11 March 2014 Internal T.I. 2013-0513221I7 F - Stock options

Publico determined to grant stock options to its directors and consultants, as a result of which a private corporation ("Corporation"), that had...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) double income inclusion under s. 56(2) or (4) to consulting corporation, and under s. 15(1) to its shareholder, where consultant's options issued directly by client to shareholder 113
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) s. 56(2) benefit where corporation implicitly consented to consultant's options being issued by client directly to its shareholder 170
Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) implicit transfer by corporation when stock options earned by it were issued directly by its client to its shareholder 175
Tax Topics - Income Tax Act - Section 9 - Timing no s. 9(1) income inclusion from consultant being granted stock options until exercise 226
Tax Topics - General Concepts - Fair Market Value - Options stock options with no in-the-money value could have nil FMV 134
Tax Topics - Income Tax Act - Section 52 - Subsection 52(1) s. 15 benefit due to shareholder receipt of stock options earned by corporation added to the ACB of the exercised shares 165

31 August 2011 External T.I. 2011-0415891E5 F - Increase in stated capital, stock dividends -55(2)

CRA will construe paragraph 55(2)(c) so that the amount deemed not to be a dividend is not taxed as a capital gain twice. Paragraph 55(2)(c) will...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) - Paragraph 55(2)(c) capital gain recognized under s. 55(2)(c) not recognized a second time on sale of the shares 185

23 April 2009 External T.I. 2008-0301241E5 F - Fiducie d'invest. à participation unitaire-75(2)

CRA indicated that, although s. 75(2) technically could apply to a real estate unit trust established on commercial terms, it very well might not...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) generally not applied to commercial unit trust where single class of units subscribed for on FMV terms 277
Tax Topics - Income Tax Act - Section 53 - Subsection 53(2) - Paragraph 53(2)(h) - Subparagraph 53(2)(h)(i.1) CRA could extend IT-369R, para. 10 to avoid ACB reductions to unit trust units where s. 75(2) applies 301

29 August 2005 External T.I. 2005-0125811E5 F - Actions prescrites: 6204(1)b) du Règlement

On the day before a third party acquired all of the shares of a Canadian-controlled private corporation (CCPC), two directors of its directors...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 6204 - Subsection 6204(1) - Paragraph 6204(1)(b) likelihood that employees’ stock option shares would be immediately repurchased meant they were not prescribed shares 124

2003 Ruling 2003-0028033 - LEASE-BARGAIN PURCHASE OPTION

A lease is amended to add an option to purchase and to increase the annual lease payment by an amount that would be in excess of the fair market...

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29 April 2003 External T.I. 2003-00646

Allocations made to the spouse of a retired partner pursuant to s. 96(1.1) would, depending on the circumstances, also be included in the income...

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26 March 2003 External T.I. 2003-0008795 - EMPLOYEE STOCK OPTION DEEMED DIVIDEND

Contrary to a previous position, CCRA has concluded that s. 248(28) does not preclude the application of s. 84(3) on the redemption of shares even...

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24 May 2002 External T.I. 2002-0123225 F - REER DONNE EN GARANTIE

After noting that where an RRSP provides a secured guarantee of a loan to the annuitant, the fair market value of the property given as security...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(10) inclusion under s. 146(10) for secured guarantee not limited to loan value, and ousts application of s. 146(8) if payment made by RRSP pursuant to guarantee 162
Tax Topics - Income Tax Act - Section 146 - Subsection 146(8) generally no double taxation under s. 146(8) on payout on guarantee if property’s value previously included under s. 146(10)/ gross-up for source deduction purposes 190

14 May 2002 Internal T.I. 2001-0109517 F - SECTION DE LA LOI248(28)

Holding companies made interest-bearing advances to a partnership (the S.E.N.C.) CRA proposed to disallow the interest deduction to the S.E.N.C....

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11 April 2001 External T.I. 1999-0007005 - DEEMED DIVIDENDS ON MARK-TO-MARKET SHARE

The following example was provided respecting a preferred share held by a financial institution whose paid-up capital (and apparently, redemption...

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21 November 2000 External T.I. 2000-0056495 - double taxation

A Canadian resident corporation lends money to a foreign affiliate which, in turn, lends money to non-affiliated and non-resident corporations. In...

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10 August 2000 External T.I. 2000-0016875 - SAR DISPOSITION, SHARES

"Where an employee has income from employment under paragraph 7(1)(a) related to the disposition, by virtue of subsection 7(1.1), of shares and a...

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12 November 1992 Memorandum (Tax Window, No. 27, p. 7, ¶2330)

S.4(4) cannot be invoked to open up a year for reassessments that is statute-barred where an expense that relates to that year was claimed by a...

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11 June 1991 T.I. (Tax Window, No. 4, p. 8, ¶1297)

Under the proposed version of s. 4(4), interest to which s. 18(4) applied in a previous year will not be required to be included in income under...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 80 - Subsection 80(4) 19

11 September 89 T.I. (February 1990 Access Letter, ¶1109)

There is no provision in the Act permitting a shareholder/manager to reduce the amount of salary received by him to the extent that such salary is...

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86 C.R. - Q.39

In the absence of abuse, RC will not tax the same amount twice.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 67 42

85 C.R. - Q.6

"Normally it is the Department's practice not to assess the same income twice."

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) 17

84 C.R. - Q.46

A deemed dividend arising on the redemption of shares that are inventory will be excluded from the shareholder's s. 9 gain.

81 C.R. - Q.3

On the conversion of debt of an insolvent corporation into share capital, RC will not apply both ss.69(1)(a) and 80.

IT-369R "Attribution of Trust Income to Settlor"

An amount which has been attributed to a person under s. 75(2) normally will be excluded from the income of the beneficiaries and the trust.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) 108

IT-462 "Payments Based on Production or Use"

In situations where ss.12(1)(a) or (b) can be applied in addition to paragraph 12(1)(g), RC will normally apply only the former provisions to...

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Articles

Kevin Kelly, Sona Dhawan, "Share Repurchase Programs", Canadian Tax Highlights, Vol. 26, No. 6, June 2018, p. 9

An investment dealer holds a share of an issuer with a paid-up capital of $15, an original cost to it of $40 and a fair market value of $100. It...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 112 - Subsection 112(5.2) 352

Subsection 248(30)

See Also

Walby v. The King, 2023 TCC 164

The taxpayers both participated in the Global Learning Gifting Initiative program (the “GLGI Program”) which provided them with two charitable...

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Markou v. The Queen, 2018 TCC 66, aff'd on selected grounds 2019 FCA 299

The Ontario and Quebec appellants had engaged in the same leveraged donation program as to which the Federal Court of Appeal in Maréchaux had...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts leveraged donations were integrated transactions no component of which had a “donative intent” 447

Administrative Policy

20 September 2007 External T.I. 2007-0248451E5 F - Donation lors d'un encan

In an auction held in Quebec by a charity, a bidder bid more than the value of the lot of items, being an amount exceeding its value, which was...

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6 January 2006 External T.I. 2005-0159421E5 F - Dons visant un programme particulier

After noting that IT-110R3, para. 15(f) states that a charity may not issue an official receipt if the donor has directed the charity to give the...

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Subsection 248(31)

Administrative Policy

15 June 2012 External T.I. 2012-0434761E5 F - Dons liés à une police d'assurance-vie

The holder and beneficiary of a life insurance policy assigns by gift all of that individual’s rights and obligations under the policy to a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts gift if pay policy premiums following assignment of policy to charity, but not by virtue of designating charity as policy beneficiary 272
Tax Topics - General Concepts - Fair Market Value - Other 7 factors to be considered in valuing a donated life insurance policy 112

1 August 2006 External T.I. 2005-0125431E5 F - Donation rémunératoire et vente à rabais

Before finding that a remunerative gift as described in the Civil Code could give rise to a donation tax credit, CRA stated:

2. The new rules in...

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9 April 2003 External T.I. 2003-0008735 F - DONATION XXXXXXXXXX

Regarding the introduction of ss. 248(3) to (32), CCRA indicated that it would follow its interim guidelines in Income Tax Technical News No. 26...

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Subsection 248(32) - Amount of advantage

Cases

Canada v. Castro, 2015 DTC 5113 [at 6266], 2015 FCA 225, rev'g sub nom. David v. The Queen, 2014 DTC 1111 [at 3236], 2014 TCC 117

A group of individuals made cash contributions to a registered charity on the basis that the charity would issue charitable receipts to them for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts inflated charitable receipt not a "benefit" vitiating a gift (donative intent issue not properly raised) 175
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(2) inflated charitable receipt was invalid 193
Tax Topics - Income Tax Regulations - Regulation 3501 inflated charitable receipt was invalid 193
Tax Topics - Statutory Interpretation - Interpretation Act - Section 16 Regs read in context of enabling legislation 82
Tax Topics - Statutory Interpretation - Interpretation Act - Section 32 inflated charitable receipt not an "advantage" 124

Administrative Policy

13 January 2005 External T.I. 2004-0103281E5 F - dons et avantages

In the course of discussing the (then) draft rules in ss. 248(31) and (32), in relation to a charitable fundraising campaign conducted through a...

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11 May 2004 External T.I. 2004-0069521E5 F - Don de biens culturels

After indicating that s. 248(32) “does not create a presumption of gift where the value of the consideration received by a donor is less than...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Cultural Gifts - Paragraph (a) no donation of an object where donation of an interest therein 92

2 February 2004 External T.I. 2003-0052611E5 F - Montant de l'avantage au titre d'un don

How is the amount of a taxpayer's advantage in respect of a gift determined where a taxpayer donates and sells multiple properties to a charity?...

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22 January 2004 Internal T.I. 2003-0054781I7 F - Reçu de don pour une partie de la valeur

CCRA indicated that its de minimis threshold policy of CRA did not apply where the ticket price to attend a charitable auction included a meal, as...

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Income Tax Technical News No. 26, 24 December 2002

Fund Raising Events or Activities

The guidelines below have general application to all fund raising events or activities:

  • The attendance of...

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Subsection 248(34)

Subsection 248(35) - Deemed fair market value

See Also

Mariano v. The Queen, 2015 DTC 1209 [at 1331], 2015 TCC 244

The taxpayers were participants in leveraged donation transactions, which were intended to result in a step-up of the adjusted cost base of...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Other courseware licences valued at modest initial cost, given relevant wholesale market and depressive effect of huge volumes purchased 303
Tax Topics - General Concepts - Ownership no acquisition of unascertained property 76
Tax Topics - General Concepts - Sham taxpayer involvement in deceit unnecessary 375
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) void for lack of certainty of objects 224
Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) delegation of power of appointment to promoter not authorized 238
Tax Topics - Income Tax Act - Section 118.1 - Subsection 118.1(1) - Total Charitable Gifts no gift where no intent for impoverishment and where gifted property not yet identified 566

Administrative Policy

2 November 2023 APFF Financial Strategies and Instruments Roundtable Q. 5, 2023-0978561C6 F - Partnership – distribution of a life insurance police

A partnership held, was the beneficiary of and paid the premiums for 10 years on, three policies on the lives of each of the three individuals who...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 148 - Subsection 148(7) s. 98(2) generally prevails over s. 148(7) 103
Tax Topics - 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 104

8 November 2021 External T.I. 2021-0882391E5 - Acquisition of life insurance policy for ss248(35)

For purposes of counting out the three (or 10) year period under s. 248(35)(b), would a gifted life insurance policy be considered to have been...

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10 October 2014 APFF Roundtable Q. 10, 2014-0538641C6 F - 2014 APFF Roundtable, Q. 10 - Application of 248(35), (36) and (37)(g).

(a)…The provisions of subsection 248(36) do not apply to gifts acquired by reason of the death of an individual. Since…the property that is...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(36) bequest on FMV basis 100

16 October 2012 External T.I. 2012-0454451E5 - Donation of flow-through shares

A query was received respecting the donation of flow-through shares of a private company which were issued as part of a gifting arrangment which...

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19 November 2009 External T.I. 2009-0312021E5 F - Prime d'assurance et donation

Mr. A donates a universal life insurance policy on his life that includes a return of premiums on death (ROPD) rider, which provides for the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118 - Subsection 118(5.2) deemed payment of gift by deceased under s. 118(5.2) when charity receives policy death benefit, subject to s. 248(35) 265

Paragraph 248(35)(b)

Subparagraph 248(35)(b)(i)

Administrative Policy

18 May 2017 Roundtable, 2017-0692361C6 - CLHIA 2017 Q4 - Gift of a life insurance policy

An individual transferred a life insurance policy, having a nil adjusted cost basis and cash surrender value to his company for nil proceeds, and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(36) adjusted cost basis of policy is a reasonable proxy for its cost 446

Subsection 248(36) - Non-arm’s length transaction

Administrative Policy

18 May 2017 Roundtable, 2017-0692361C6 - CLHIA 2017 Q4 - Gift of a life insurance policy

Mr. A acquired a life insurance policy on his life with a $1 million death benefit and then transferred it to his wholly-owned corporation (ACo)...

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Words and Phrases
cost
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(35) - Paragraph 248(35)(b) - Subparagraph 248(35)(b)(i) gifted policy deemed to have its nil adjusted cost basis to the NAL transferor to the donor 301

10 October 2014 APFF Roundtable Q. 10, 2014-0538641C6 F - 2014 APFF Roundtable, Q. 10 - Application of 248(35), (36) and (37)(g).

…(b)… Gifts of property acquired in the circumstances contemplated in subsection 70(5) are not included in the list provided in paragraph...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(35) s. 248(35) does not apply where gifted property previously was bequested on s. 70(6) rollover basis 65

Subsection 248(37)

Paragraph 248(37)

Paragraph 248(37)(e)

Paragraph 248(37)(f)

Subsection 248(38)

Subsection 248(39)

Subsection 248(41)