Subsection 116(1) - Disposition by non-resident person of certain property
See Also
Administrative Policy
Guidance on international income tax issues raised by the COVID-19 crisis, CRA Webpage 31 March 2021
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2020 Ruling 2019-0799981R3 - Disposition – Reclassification and Stock Split
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | a simultaneous consolidation of 7 identical series of common shares into 1 series, and a stock split, did not effect a disposition | 285 |
21 November 2017 CTF Roundtable Q. 14, 2017-0724241C6 - Section 116 procedures for tax-deferred dispositions on foreign mergers
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| Tax Topics - Income Tax Act - Section 87 - Subsection 87(8.5) | requirements for letter election | 89 |
S4-F7-C1 - Amalgamations of Canadian Corporations
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4 December 2013 Internal T.I. 2013-0489051I7 - Personal-Use-Property & Article XIII(9)
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | personal-use land and building are one property | 133 |
19 March 2013 Internal T.I. 2010-0385931I7 - Taxable Canadian property and Partnerships
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property - Paragraph (e) | TCP rules not applying to foreign partners of partnership | 278 |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) | partnership TCP gain but not TCP status attributed to partners | 88 |
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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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | non s. 87 amalgamation | 155 |
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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8 October 2010 Roundtable, 2010-0373401C6 F - Fiducies et ajout d'un bénéficiaire
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | court-approved addition of a beneficiary will result either in a part disposition of trust interests, or a constructive dissolution and resettlement of the discretionary trust | 325 |
9 February 2010 Internal T.I. 2009-0333571I7 F - Paragraphe 7(1.5) - contrepartie reçue
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.5) | s. 7(1.5) rollover where employees exchanged specific s. 7(1.1) shares for shares of grandparent, even though they also received cash and PUC distribution | 454 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(j) | ACB increased by s. 7(1) benefit that had not yet been triggered due to s. 7(1.5) rollover | 276 |
| Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.4) | non-resident ex-employees will be required to recognize s. 7 benefit deferred by s. 7(1.5) when they dispose of the shares acquired in exchange | 148 |
24 February 2003 External T.I. 2002-014995
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 95 |
1993 A.P.F.F. Round Table, Q. 25
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| Tax Topics - Treaties - Income Tax Conventions - Article 13 | 43 |
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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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5.01) | 7 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property | 24 |
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]
Morris v. Canada (National Revenue), 2009 FC 434
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 4 | 104 |
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)
1992 A.P.F.F. Annual Conference, Q. 13 (January - February 1993 Access Letter, p. 55)
90 C.P.T.J. - Q.28
87 C.R. - Q.79
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 48 - Subsection 48(1) | 25 |
87 C.R. - Q.87
87 C.R. - Q.90
86 C.R. - Q.89
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"
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 27 |
Subsection 116(3) - Notice to Minister
See Also
Lipson v. The Queen, 2012 DTC 1064 [at 2796], 2012 TCC 20
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | Quebec succession not a trust | 271 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property | 184 |
Administrative Policy
30 May 2018 External T.I. 2017-0717981E5 - Clearance certificate for a non-resident
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 159 - Subsection 159(2) | executors of non-resident estates that could have Canadian tax liabilities to apply for a clearance certificate | 171 |
17 February 2014 Internal T.I. 2013-0498121I7 - Follow up to XXXXXXXXXX
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | diplomatic exemption/discretion if property sold at loss | 129 |
25 September 2013 External T.I. 2013-0485751E5 F - Rescinding 45(2) election by a non-resident
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 45 - Subsection 45(2) | deemed dispositin on 1st day of revocation year triggers s. 116(3) filing | 151 |
Subsection 116(4) - Certificate in respect of property disposed of
See Also
Administrative Policy
17 February 2017 External T.I. 2015-0602781E5 - Disposition of farm property by a non-resident
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | shares of Cdn farm are excluded from immovable property under Canada-Germany Treaty | 144 |
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(6.1) | failure to file notice within 30 days | 150 |
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Sham | deceit of taxpayer was irrelevant to assessment – so that “sham” also was irrelevant | 282 |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | no bifurcation of inflated purchase price between FMV cost and benefit conferral | 142 |
Olympia Trust Company v. Canada, 2015 FCA 279
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(2) | fictitious s. 104(2) trust is not the purchaser | 118 |
| Tax Topics - General Concepts - Evidence | contract informed by surrounding circumstances | 59 |
See Also
1074022 B.C. Ltd. v Li, 2020 BCSC 65
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 164 - Subsection 164(1) | CRA could be directed to pay an excess s. 116 remittance to the taxpayer’s secured creditors | 339 |
Kau v. The Queen, 2018 TCC 156
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Scotia Mortgage Corporation v Gladu, 2017 BCSC 1182
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(1) | no jurisdiction to declare that a vendor was a Canadian resident for s. 116 purposes | 243 |
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 | 227 |
Olympia Trust Company v. The Queen, 2014 TCC 372, aff'd 2015 DTC 5134 [at 6411], 2015 FCA 279
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Ownership | RRSP trustee, not annuitant, was the "purchaser" | 144 |
Administrative Policy
27 October 2020 CTF Roundtable Q. 4, 2020-0862451C6 - Sale of TCP by a partnership
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9 August 2017 External T.I. 2017-0709351E5 - Interaction between subsections 98(1) and 116(5)
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 98 - Subsection 98(1) - Paragraph 98(1)(c) | a negative ACB gain from a partnership interest that is TCP is not subject to s. 116 | 118 |
May 2016 Alberta CPA Roundtable, Q.14
16 March 2015 Internal T.I. 2013-0479861I7 - Section 116 & forfeited deposits on real property
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition - Paragraph (b) | forfeited sale deposit was proceeds | 79 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(4) | forfeited sale deposit was proceeds of security interest rather than of tcp | 264 |
2 June 2011 External T.I. 2011-0399501E5 - TCP distributed by N/R trust to N/R beneficiary
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(4) - Paragraph 104(4)(b) | 110 | |
| Tax Topics - Income Tax Act - 101-110 - Section 107 - Subsection 107(2) | 97 |
10 February 2011 External T.I. 2010-0387151E5 - Deemed Disposition of Shares by a Non-Resident
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|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(2) | 44 |
12 June 2009 External T.I. 2008-0301701E5 - Redemption of shares
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21 September 2006 Internal T.I. 2006-0201651I7 - Disposition of Taxable Canadian Property ("TCP")
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28 November 2001 Internal T.I. 2001-0091247 - Employer Stock Opt. & Section 116116(5)
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | 131 | |
| Tax Topics - Income Tax Act - Section 49 - Subsection 49(3) | 80 |
6 February 1997 External T.I. 9626625 - SECTION 116 - JOINT TENANCY
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11 October 1996 T.I. 963371 (C.T.O. "Sec 116 Exercise of Power of Sale Non-Resident Mortgagee")
24 May 1995 External T.I. 9501345 - SECTION 116 - POWER OF SALE
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5 April 1995 External T.I. 9431435 - FORECLOSURE AND 116(5)
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1 March 1995 External T.I. 5-940226 -
October 1989 Revenue Canada Round Table - Q.16 (Jan. 90 Access Letter, ¶1075)
88 C.R. - Q.6
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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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 51 - Subsection 51(1) | 36 |
Paragraph 116(5)(a)
Administrative Policy
25 August 2017 External T.I. 2017-0703351E5 - Paragraph 116(5)(a) - reasonable inquiry
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5.3) | statutory declaration sufficient if no negative markers | 92 |
Subsection 116(5.2) - Certificates for dispositions
Administrative Policy
90 C.R. - Q59
89 C.P.T.J. - Q2
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| Locations of other summaries | Wordcount | |
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| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5.3) | 46 |
Subsection 116(5.3) - Liability of purchaser in certain cases
Administrative Policy
25 August 2017 External T.I. 2017-0703351E5 - Paragraph 116(5)(a) - reasonable inquiry
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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(5) - Paragraph 116(5)(a) | in the absence of counter indicators, a statutory declaration of residence is sufficient | 167 |
29 January 2013 External T.I. 2012-0470331E5 - S.116 - Qualified Business Exemption
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25 October 1993 External T.I. 9324605 - FORECLOSURE ACTION INSTITUTED BY MORTGAGEE (7354)
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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 |
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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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(1) | 7 | |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxable Canadian Property | 24 |
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.
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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| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(4) | CRA may accept a T2062 showing deemed s. 73(4.1) rollover proceeds | 297 |
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | shares of Cdn farm are excluded from immovable property under Canada-Germany Treaty | 144 |
2012 Ruling 2011-0429961R3 - Hydrocarbon & Immovable property: Canada-UK Treaty
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| Locations of other summaries | Wordcount | |
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| Tax Topics - Treaties - Income Tax Conventions - Article 13 | 97 |