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...
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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| 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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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | lessee had acquired the 3 incidents of ownership | 236 |
| Tax Topics - Statutory Interpretation - Provincial Law | 61 |
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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| 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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| 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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| 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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| 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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| 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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| 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...
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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| 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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| 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 |
28 June 2001 External T.I. 2001-0069865 F - CRÉDIT-BAIL
In connection with finding that cancelled IT-233R and Construction Bérou should not be followed in considering a taxpayer to have acquired...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | Construction Bérou should not be followed in finding that a lessee can be the tax owner of the leased property | 50 |
10 May 2001 External T.I. 2001-0066095 F - CREDIT-BAIL
In the course of indicating that it would not follow the interpretation given to s, 248(3) in Construction Bérou, CCRA stated:
The Federal Court...
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| Tax Topics - Income Tax Act - Section 13 - Subsection 13(21) - Undepreciated Capital Cost - A | following Shell, CCRA will only recharacterize a lease where the true legal relationship is not of a lease | 134 |
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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| 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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| 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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| 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...
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...
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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| 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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|---|---|---|
| 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...
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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| 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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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (d) | mortgages not tcp | 164 |
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....
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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| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxpayer | 103 |
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...
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...
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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|---|---|---|
| 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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|---|---|---|
| Tax Topics - Income Tax Act - Section 74.2 - Subsection 74.2(1) | 118 |
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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| 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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| 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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| 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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|---|---|---|
| Tax Topics - Income Tax Act - Section 93 - Subsection 93(2.01) | 72 |
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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|---|---|---|
| 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...
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...
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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|---|---|---|
| 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...
| 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...
| 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...
Administrative Policy
7 October 2020 APFF Roundtable Q. 7, 2020-0852191C6 F - Capital dividend and series of shares
In finding that capital dividends potentially could be paid on one series of a class and not the other, CRA stated:
Under subsection 248(6), where...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 83 - Subsection 83(2) | capital dividends can be paid on one series and not the other | 235 |
| Tax Topics - Income Tax Act - Section 83 - Subsection 83(2.1) | s. 83(2.1) “should be considered” where one of the main purposes of a reorganization is to stream capital dividends | 141 |
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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 301 - Subsection 301(1.1) | 52 | |
| Tax Topics - Excise Tax Act - Section 334 - Subsection 334(1) | 95 | |
| Tax Topics - Statutory Interpretation - Interpretation/Definition Provisions | "deems" is irrebuttable | 68 |
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 57 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Interpretation Act - Subsection 45(2) | 88 |
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...
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...
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....
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...
| 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,...
| 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...
| 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...
| 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...
| 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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Testamentary Trust | 42 |
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...
| 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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) | 68 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 70 - Subsection 70(6) | 41 |
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...
| 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...
| 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 ...
| 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...
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...
| 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...
| 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...
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...
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...
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...
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...
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...
| 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)
Administrative Policy
Folio S6-F4-C1, "Testamentary Spouse or Common-law Partner Trusts," 3 February 2022
Does not apply if no court order
1.15 Paragraph 248(9.1)(b) applies to a trust established by a court order, in relation to the taxpayer’s...
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 . . ....
| 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...
| 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...
| 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...
| 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...
| 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...
| 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,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Transitional Provisions and Policies | 163 | |
| Tax Topics - Income Tax Act - Section 112 - Subsection 112(3) | 174 | |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(9) | 117 | |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | clear wording | 80 |
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...
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)...
| 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 |
Canada v. Canadian Utilities Ltd., 2004 DTC 6475, 2004 FCA 234
Normal course dividends paid by two public corporations (“CU” and “CUH”) which gave rise to a Part IV tax refund were considered part of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | independent purpose for ordinary-course dividends did not exclude them from series | 230 |
OSFC Holdings Ltd. v. Canada, 2001 DTC 5471, 2001 FCA 260
Rothstein JA found that transactions that had the effect of transferring properties with accrued losses to a partnership were a “common law”...
| 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...
| 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...
| 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...
| 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...
| 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...
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...
| 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, stating:
To allow for a meaningful...
| 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...
| 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...
| 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, 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...
| 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 |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(g) | using cash share subscriptions to convert debt to share equity abused s. 80(2)(g) | 190 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | 355 | |
| Tax Topics - Statutory Interpretation - Retroactivity/Retrospectivity | 91 | |
| Tax Topics - Treaties - Income Tax Conventions | 148 |
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Safe-Income Determination Time | subsequent redemption of preferred shares was not assimilated to the series in which they were issued one or more year previously, given different objectives for each and lack of interdependence | 175 |
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) | 111 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Tax Avoidance | 203 |
Administrative Policy
2023 Ruling 2022-0958601R3 - Post Butterfly Transactions
CRA ruled on whether subsequent sale and redemption transactions involving shares that had been distributed on the third of three successive...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3.1) - Paragraph 55(3.1)(c) | post-butterfly sales of distributed shares by TC (or redemption in hands of DC of retained shares) were independent of the butterfly and did not engage s. 55(3.1)(c) (or (d)) | 602 |
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...
| 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...
| 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...
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...
| 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...
| 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...
| 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 |
7 June 2001 External T.I. 2001-0079505 F - Gel suivi d'un rachat des actions priv.
A freeze transaction entailed all of the (1,000) Class A Opco common shares held by Holdco with a FMV of $10 million being exchanged under s. 51...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(2.1) - Paragraph 55(2.1)(c) | safe income of common shares converted to pref under s. 51 was transferred to the pref/ non-cumulative pref dividends do not reduce safe income until declared | 311 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(c) - Subparagraph 88(1)(c)(vi) | 55 |
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 15 - Subsection 15(1.1) | 41 | |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | 22 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) | 153 |
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...
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(3) - Paragraph 55(3)(a) | 88 |
Marc Ton-That, Vance Sider, "Understanding Section 55 and Butterfly Reorganizations", 2nd Edition, CCH, 1999
Alleviation of already narrow concept of series (commencing with negotiations) through introduction of SIDT definition (pp. 34-35)
- Prior to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(1) - Safe-Income Determination Time | 437 |
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...
| 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...
| 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...
| 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...
| 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...
| 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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose | 23 |
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...
| 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...
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...
| 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...
| 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...
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...
| 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 |
18 September 2001 External T.I. 2001-0100485 F - PARTAGE D'ACTION DETENUE EN INDIVISION
CCRA indicated that S. 248(21) could apply if, following the s. 98(3) wind-up of a partnership holding shares, there was a legally effective...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(21) | no need to issue fractional share certificates on partition of shares held in co-ownership for s. 248(21) to apply/ no disposition on subsequent global certificate issuance | 147 |
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...
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...
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....
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...
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...
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...
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...
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....
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...
| 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...
| 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)...
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...
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...
| 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...
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...
| 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 |
18 September 2001 External T.I. 2001-0100485 F - PARTAGE D'ACTION DETENUE EN INDIVISION
CCRA indicated that S. 248(21) could apply if, following the s. 98(3) wind-up of a partnership holding shares, there was a legally effective...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(20) | s. 248(20) produced the same results as s. 248(21) | 133 |
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...
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...
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...
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...
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...
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...
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...
| 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...
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. ...
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...
| 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...
| 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...
| 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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 108 - Subsection 108(1) - Income Interest | 28 | |
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(1.2) - Paragraph 256(1.2)(f) | potential beneficiary was a beneficiary | 282 |
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...
| 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...
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...
| 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...
| 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 |
8 October 2004 APFF Roundtable Q. 28, 2004-0086961C6 - Interaction of 55(5)(e)(ii) and 248(25)(a)
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(ii) | s. 248(25)(a) does not expand "beneficiary" in s. 55(5)(e)(ii) | 71 |
S1-F5-C1 - Related Persons and Dealing at Arm's Length
1.31 The following are examples of situations where an individual is beneficially interested in a trust:
- a) trust income is payable to the...
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...
| 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...
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 55 - Subsection 55(5) - Paragraph 55(5)(e) - Subparagraph 55(5)(e)(ii) | 206 |
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...
| 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...
| 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...
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...
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...
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...
| 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...
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...
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,...
| 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)
Administrative Policy
21 November 2001 Internal T.I. 2001-0094527 F - PERTE REPUTEE NULLE-BRYAN
In finding that s. 50(1)(a) did not apply to an unsecured debt that was subsequently discharged under a bankruptcy proposal for cents on the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(2) - Paragraph 40(2)(g) - Subparagraph 40(2)(g)(ii) | Byram now followed re loss on non-interest-bearing shareholder loan to corporation | 57 |
| Tax Topics - Income Tax Act - Section 50 - Subsection 50(1) - Paragraph 50(1)(a) | no partial bad debt recognition under s. 50(1)(a) | 64 |
| Tax Topics - Income Tax Act - Section 39 - Subsection 39(1) - Paragraph 39(1)(c) - Subparagraph 39(1)(c)(ii) | settlement of corporate debt under a bankruptcy proposal did not entail disposition of the debt to the corporation | 89 |
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(b) - Subparagraph 251(2)(b)(i) | shareholder continued to control “his” corporation while it was being administered by a bankruptcy trustee pending approval of a proposal | 83 |
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) | settlement under bankruptcy proposal of debt did not entail a disposition of that debt to the corporation | 50 |
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...
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...
| 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...
| 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...
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...
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...
| 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))...
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...
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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 10 - Subsection 10(1) | 54 | |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(4) | 46 |
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...
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...
The Queen v. Robichaud, 83 DTC 5265, [1983] CTC 195 (FCTD)
A husband and wife were unsuccessful in claiming each other as dependants.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118 - Subsection 118(1) - Paragraph 118(1)(a) | 60 |
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...
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...
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...
| 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...
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...
| 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...
| 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",...
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 ......
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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118 - Subsection 118(7) | 122 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Fair Market Value - Shares | deceased's shares valued based on terms of agreement binding the deceased | 169 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 100 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | 56 |
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Res Judicata | 126 | |
| Tax Topics - Income Tax Act - Section 6 - Subsection 6(1) - Paragraph 6(1)(a) | 163 |
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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(a) | 133 |
Administrative Policy
4 June 2024 STEP Roundtable Q. 2, 2024-1003641C6 - Salary to Family Members
A corporation pays wages to an individual employee who was also a shareholder and a portion of the wages is subsequently determined to be...
| 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...
| 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...
| 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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3) | notional s. 40(3) gain does not generate surplus | 70 |
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(6) | no double inclusion following FA creditor wind-up or for 2nd loan in series | 121 |
| Tax Topics - Income Tax Act - Section 90 - Subsection 90(9) | notional election and double taxation issues | 1332 |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(1.1) | notional Reg. 5901(1.1) election | 30 |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(a) | 90-day rule unavailable | 28 |
| Tax Topics - Income Tax Regulations - Regulation 5901 - Subsection 5901(2) - Paragraph 5901(2)(b) | notional Reg. 5901(2)(b) election | 31 |
| Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Underlying Foreign Tax | notional UFT disproportionate election | 37 |
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...
| 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...
| 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...
| 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...
| 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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 49 - Subsection 49(3) | 159 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 56 - Subsection 56(4) | 38 | |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1.1) | 38 |
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...
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...
| 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....
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 142.5 - Subsection 142.5(1) | 57 |
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...
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(3) - Paragraph 7(3)(a) | 36 | |
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) | 83 |
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...
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...
| 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...
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.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition - Paragraph (j) | 17 |
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.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 69 - Subsection 69(1) - Paragraph 69(1)(a) | 52 |
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(g) | 316 |
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...
| 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...
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...
| 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
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Non-advantage gift elements must still obtain
1.5 ... If the amount of the advantage exceeds 80% of the fair market value of the transferred...
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...
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...
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...
| 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...
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...
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...
| 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
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Advantage need not be direct and contemporaneous
1.9 ... An advantage might exist even though it is not received at the time of the gift. For...
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...
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...
| 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?...
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...
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...
Subsection 248(34)
Paragraph 248(34)(a)
Administrative Policy
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Effect of repayment
1.40 A taxpayer might repay an amount on account of the principal of an indebtedness that was a limited-recourse debt in...
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...
| 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
7 May 2024 CALU Roundtable Q. 5, 2024-1007081C6 - Gift of life insurance policy
S. 248(5) would apply where:
- Within 2 years of the s. 98(5) wind-up of a partnership that had held a policy on the life of the sole proprietor...
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...
| 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...
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Scope of deemed FMV rule in s. 248(35)
1.27 This deemed fair market value rule applies where the taxpayer acquired the property under a gifting...
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...
| 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...
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...
| 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...
| 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)...
| 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 |
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Scope of s. 248(36)
1.33 Under subsection 248(36), where a taxpayer gifts a property that was acquired from a non-arm’s-length person or...
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...
| 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)
Administrative Policy
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Scope of s. 248(37)(e)
1.30 A taxpayer might transfer a property (transferred property) to a corporation controlled by the taxpayer (or by a...
Paragraph 248(37)(f)
Administrative Policy
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Scope of s. 248(37)(f)
1.31 Another exception to the deemed fair market value rule exists for certain property gifted by a corporation to a...
Subsection 248(38)
Administrative Policy
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Purpose and scope of s. 248(38)
1.34 Subsection 248(38) is intended to prevent a taxpayer from artificially increasing the cost of a property by...
Subsection 248(39)
Administrative Policy
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Scope of s. 248(39)
1.35 Subsection 248(39) prevents a taxpayer from avoiding the application of the deemed fair market value rule by disposing of...
Subsection 248(41)
Administrative Policy
S7-F1-C1 - Split-receipting and Deemed Fair Market Value
Examples of relevant information
1.41 Subsection 248(41) provides that the eligible amount of a gift made by a taxpayer is nil if the taxpayer...