Section 116

Subsection 116(1) - Disposition by non-resident person of certain property

See Also

Gambino v. The Queen, 2009 DTC 4, 2008 TCC 601 (Informal Procedure)

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Administrative Policy

S4-F7-C1 - Amalgamations of Canadian Corporations

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Tax Topics - Income Tax Act - Section 100 - Subsection 100(2.1) s. 100(2.1) applies to non-qualifying amalgamation 58
Tax Topics - Income Tax Act - Section 111 - Subsection 111(12) application following amalgamation 103
Tax Topics - Income Tax Act - Section 13 - Subsection 13(5.1) continuity of s. 13(5.1) on amalgamation 126
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1) Amalco can continue objection and receive refunds 145
Tax Topics - Income Tax Act - Section 169 Amalco can continue objection 97
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(n) reserve after amalgamation 50
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Shareholder shareholder need not hold shares 82
Tax Topics - Income Tax Act - Section 251 - Subsection 251(3.1) deemed non-arm's length relationship on amalgamation 164
Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(b) realted party, majority and 50% group exceptions 448
Tax Topics - Income Tax Act - Section 40 - Subsection 40(1) - Paragraph 40(1)(a) - Subparagraph 40(1)(a)(iii) reserve after amalgamation 50
Tax Topics - Income Tax Act - Section 66.7 - Subsection 66.7(7) successoring where non-wholly owned amalgamation 85
Tax Topics - Income Tax Act - Section 69 - Subsection 69(13) no disposition of predecessor property on general principles 103
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.4) s. 87(5) not applicable 104
Tax Topics - Income Tax Act - Section 80.01 - Subsection 80.01(3) non-87 amalgamation/no FX gain 159
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) no deemed dividend to dissenter on amalgamation 81
Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) election filing by Amalco 103
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.1) s. 87(1.1) qualifies for all s. 87 purposes 60
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1.2) successoring where non-wholly owned amalgamation 85
Tax Topics - Income Tax Act - Section 87 - Subsection 87(10) deemed listing of temporary Amalco shares 114
Tax Topics - Income Tax Act - Section 87 - Subsection 87(11) gain if high PUC is sub shares 47
Tax Topics - Income Tax Act - Section 87 - Subsection 87(1) presumptive satisfaction of s. 87(1)(a)/dissent and squeeze-outs onside 260
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(a) new corp/deemed year end coinciding or not with acquisition of control 0
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(b) Amalco must follow predecessor's valuation method subject to truer picture doctrine 58
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(c) reserve after amalgamation 103
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(d) cost amount carryover 135
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(e.1) s. 100(2.1) applies to non-qualifying amalgamation 58
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(o) no continuity rule for non-security options 133
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(q) pre-amalgamation services 96
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.11) loss-carry back to parent 159
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2.1) dovetailing with s. 88(1.1) 38
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3.1) 328
Tax Topics - Income Tax Act - Section 87 - Subsection 87(3) PUC shifts 181
Tax Topics - Income Tax Act - Section 87 - Subsection 87(4) fractional share cash/ACB or value shift/implied non-recognition for predecessor shares 247
Tax Topics - Income Tax Act - Section 87 - Subsection 87(7) dovetailing with s. 78 and 112(12) 171
Tax Topics - Income Tax Act - Section 87 - Subsection 87(9) allocation of s. 87(9)(c)(ii) excess as parent chooses 218
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1) - Paragraph 88(1)(d) late designation 106
Tax Topics - Income Tax Act - Section 88 - Subsection 88(1.1) dovetailing with s. 87(2.1) 56
Tax Topics - Income Tax Act - Section 98 - Subsection 98(5) partnership dissolution on amalgamation 123
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2.2) deemed non-arm's length relationship on amalgamation 415
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(2) deemed non-arm's length relationship on amalgamation 323
Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(14) class continuity on non-arm's length amalgamation 311
Tax Topics - Income Tax Regulations - Regulation 8503 - Subsection 8503(3) - Paragraph 8503(3)(b) pre-amalgamation services 96

4 December 2013 Internal T.I. 2013-0489051I7 - Personal-Use-Property & Article XIII(9)

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Tax Topics - Treaties - Articles of Treaties - Article 13 personal-use land and building are one property 125

19 March 2013 Internal T.I. 2010-0385931I7 - Taxable Canadian property and Partnerships

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Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (e) TCP rules not applying to foreign partners of partnership 266
Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) partnership TCP gain but not TCP status attributed to partners 84

4 January 2013 External T.I. 2012-0448681E5 - s. 116 req. of NR-estates per draft NRT legis.

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29 March 2012 External T.I. 2010-0385771E5 - Taxation of an Estate

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3 December 2012 External T.I. 2012-0457741E5 - Disposition of taxable Canadian property

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Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition non s. 87 amalgamation 149

17 May 2012 IFA Roundtable, 2012-0444081C6 - 2012 IFA Seminar - Question 4

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11 October 2012 External T.I. 2011-0429021E5 - Administrative Position subsections 87(4)/116

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24 February 2003 External T.I. 2002-014995

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1993 A.P.F.F. Round Table, Q. 25

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Tax Topics - Treaties - Articles of Treaties - Article 13 43

24 September 1992 T.I. (Tax Window, No. 24, p. 13, ¶2181)

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Articles

Steve Suarez, Maire-Eve Gosselin, "Canada's Section 116 System for Nonresident Vendors of Taxable Canadian Property", Tax Notes International,9 April 2012, p. 175

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Kevin Scott, S. Sebastian Elawny, "Estate Distributions to Non-Residents", CCH Tax Topics, No. 1911, 23 October 2008, p. 1.

Jack Bernstein, "Why Canada Should End the Roadblock to Foreign Private Equity", Tax Notes International, 46/9 May 28, 2007.

Subsection 116(2) - Certificate in respect of proposed disposition

Cases

MNR v. Morris, 2010 DTC 5013 [at 6575]

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Morris v. Canada (National Revenue), 2009 FC 434

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Tax Topics - Treaties - Articles of Treaties - Article 4 102

Administrative Policy

25 June 2014 External T.I. 2012-0465221E5 - Trust distributions to non-residents

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1992 A.P.F.F. Annual Conference, Q. 23 (January - February 1993 Access Letter, p. 59)

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1992 A.P.F.F. Annual Conference, Q. 13 (January - February 1993 Access Letter, p. 55)

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90 C.P.T.J. - Q.28

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87 C.R. - Q.79

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Tax Topics - Income Tax Act - Section 48 - Subsection 48(1) 25

87 C.R. - Q.87

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87 C.R. - Q.90

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86 C.R. - Q.89

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IT-150R2 "Acquisition from a Non-Resident of Certain Property on Death or Mortgage Foreclosure or by Virtue of a Deemed Disposition" /p>

IC 72-17R4 "Procedures concerning the disposition of taxable Canadian property by non-residents of Canada - Section 116"

Subsection 116(3) - Notice to Minister

See Also

Lipson v. The Queen, 2012 DTC 1064 [at 2796], 2012 TCC 20

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Serge Côté Family Trust v. Canada (Attorney General), 2010 DTC 5071 [at 6798], 2009 FC 698

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Administrative Policy

17 February 2014 Internal T.I. 2013-0498121I7 - Follow up to XXXXXXXXXX

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Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) diplomatic exemption/discretion if property sold at loss 123

25 September 2013 External T.I. 2013-0485751E5 F - Rescinding 45(2) election by a non-resident

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Subsection 116(4) - Certificate in respect of property disposed of

See Also

Corporation A.A.A. S.A. v. MNR, 92 DTC 1805 (TCC)

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Administrative Policy

17 February 2017 External T.I. 2015-0602781E5 - Disposition of farm property by a non-resident

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Tax Topics - Treaties - Articles of Treaties - Article 13 shares of Cdn farm are excluded from immovable property under Canada-Germany Treaty 136
Tax Topics - Income Tax Act - Section 116 - Subsection 116(6.1) failure to file notice within 30 days 144

8 May 1995 T.I. 950401 (C.T.O. "Meaning of Tax Cnd. pty (Shares Held as Inventory)")

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Subsection 116(5) - Liability of purchaser

Cases

Coast Capital Savings Credit Union v. Canada, 2016 FCA 181

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Words and Phrases
cost
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Tax Topics - General Concepts - Sham deceit of taxpayer was irrelevant to assessment – so that “sham” also was irrelevant 268
Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base no bifurcation of inflated purchase price between FMV cost and benefit conferral 132

Olympia Trust Company v. Canada, 2015 FCA 279

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Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) fictitious s. 104(2) trust is not the purchaser 112
Tax Topics - General Concepts - Evidence contract informed by surrounding circumstances 55

See Also

Coast Capital Savings Credit Union v. The Queen, 2015 TCC 195, aff'd 2016 FCA 181

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Tax Topics - General Concepts - Sham sham may be pleaded only by the Minister 211

Olympia Trust Company v. The Queen, 2014 TCC 372, aff'd 2015 DTC 5134 [at 6411], 2015 FCA 279

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Tax Topics - General Concepts - Ownership RRSP trustee, not annuitant, was the "purchaser" 138

Administrative Policy

May 2016 Alberta CPA Roundtable, Q.14

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

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Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) forfeited sale deposit was proceeds 77
Tax Topics - Income Tax Act - Section 248 - Subsection 248(4) forfeited sale deposit was proceeds of security interest rather than of tcp 235

2 June 2011 External T.I. 2011-0399501E5 - TCP distributed by N/R trust to N/R beneficiary

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10 February 2011 External T.I. 2010-0387151E5 - Deemed Disposition of Shares by a Non-Resident

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12 June 2009 External T.I. 2008-0301701E5 - Redemption of shares

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21 September 2006 Internal T.I. 2006-0201651I7 -

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28 November 2001 Internal T.I. 2001-009124

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6 February 1997 T.I. 962662

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11 October 1996 T.I. 963371 (C.T.O. "Sec 116 Exercise of Power of Sale Non-Resident Mortgagee")

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24 May 1995 T.I. 950134 (C.T.O. "Section 116 - Power of Sale")

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6 April 1995 T.I. 943143 (C.T.O. "Foreclosure and 116(5)")

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1 March 1995 External T.I. 5-940226 -

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October 1989 Revenue Canada Round Table - Q.16 (Jan. 90 Access Letter, ¶1075)

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88 C.R. - Q.6

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84 C.R. - Q.39

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Articles

Vivien Morgan, "CRA on Section 116", Canadian Tax Highlights, Vol. 17, No. 9, September, 2009, p. 9.

Gabrielle M.R. Richards, "Capital Financing by Non-Residents: Section 116 Obligations", Corporate Structures and Groups, Vol. VII, No. 3, 2002, p. 375

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Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) 36

Subsection 116(5.2) - Certificates for dispositions

Administrative Policy

90 C.R. - Q59

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89 C.P.T.J. - Q2

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 116 - Subsection 116(5.3) 46

Subsection 116(5.3) - Liability of purchaser in certain cases

Administrative Policy

29 January 2013 External T.I. 2012-0470331E5 - S.116 - Qualified Business Exemption

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25 October 1993 T.I. 932460 (C.T.O. "Foreclosure Action Instituted by Mortgagee")

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89 C.P.T.J. - Q2

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 116 - Subsection 116(5.2) 12

81 C.R. - Q.19

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Subsection 116(5.01) - Treaty-protected property

Articles

Steve Suarez, Maire-Eve Gosselin, "Canada's Section 116 System for Nonresident Vendors of Taxable Canadian Property", Tax Notes International,9 April 2012, p. 175

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Michael N. Kandev, Fred Purkey, "Practical Troubles With the Disposition of Canadian-Situs Property by Nonresidents of Canada", Practitoner's Corner, Tax Notes International, 12 September 2011, p. 807.

Rhonda Rudick, "No Section 116 Safe Harbour", Tax Topics, 12 May 2011, No. 2044, p. 1

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Subsection 116(6.1) - Treaty-exempt property

Administrative Policy

17 February 2017 External T.I. 2015-0602781E5 - Disposition of farm property by a non-resident

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Tax Topics - Income Tax Act - Section 116 - Subsection 116(4) CRA may accept a T2062 showing deemed s. 73(4.1) rollover proceeds 289
Tax Topics - Treaties - Articles of Treaties - Article 13 shares of Cdn farm are excluded from immovable property under Canada-Germany Treaty 136

2012 Ruling 2011-0429961R3 - Hydrocarbon & Immovable property: Canada-UK Treaty

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