Subsection 133(1) - Computation of income
Cases
MNR v. Peninsular Investments Ltd., 63 DTC 1149, [1963] CTC 230 (Ex Ct)
The taxpayer, which was a non-resident-owned investment corporation that invested in shares and bonds, sought to deduct interest paid by it on a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Financing Expenditures | financing of its transactions was not an integral part of the taxpayer's business | 171 |
Administrative Policy
5 March 1990 T.I. (August 1990 Access Letter, ¶1383)
Discussion of the consequences of ceasing to qualify as an NRO.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 48 - Subsection 48(3) | 51 | |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 68 |
Articles
Rohde, "NROs - Some New Developments", Tax Profile, Vol. 4, No. 34, April 1996, p. 382.
Lanthier, "Acquiring, Holding and Financing Canadian Corporations", Bulletin for International Fiscal Documentation, Vol. 48, No. 8/9, August/September 1994, Special IFA issue, p. 419.
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|---|---|---|
| Tax Topics - Treaties - Income Tax Conventions - Article 13 | 7 |
Broadhurst, "Financing by Non-Residents", 1992 Corporate Management Tax Conference Report, c. 9.
Aud, "Tax Havens - What Benefits Still Exist?", International Tax Report, August 1992
U.S. multinationals use an NRO in conjunction with a Canadian operating subsidiary as a financing vehicle.
McGuffin, "Financing a Canadian Subsidiary Through an NRO", The Journal of International Taxation, November/December 1991, p. 235.
Subsection 133(8) - Definitions
Cumulative Taxable Income
Cases
Great Atlantic and Pacific Tea Co. Ltd. v. The Queen, 79 DTC 5401, [1979] CTC 509, [1980] 1 S.C.R. 670
The argument of the taxpayer that s. 133(9)(b)(ii) did not require that the taxation year have been completed in order for taxable income earned...
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|---|---|---|
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 61 |
Non-Resident-Owned Investment Corporation
Cases
Banner Pharmacaps NRO Ltd. v. Canada, 2003 FCA 367, 2003 DTC 5642 (FCA)
The taxpayer argued that it was in the business of making loans on the basis that the Canadian corporation in which it was invested had declared a...
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|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | promissory note accepted as payment | 139 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(j) | dividends recognized on cash basis | 117 |
Deltona Corp. v. MNR, 71 DTC 5186, [1971] CTC 297 (Ex Ct), briefly aff'd 73 DTC 5180, [1973] CTC 215 (SCC)
At 11:00 a.m. on March 28, 1966 a subsidiary ("Deltona Canada") of the taxpayer elected to be an NRO, at 3:30 p.m. the shareholders of Deltona...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 250 - Subsection 250(4) | although an amalgamated corporation was "continued" from its predecessors on amalgamation, it came into existence on the amalgamation | 120 |
| Tax Topics - Income Tax Act - Section 85 - Subsection 85(1) | 76 |
See Also
No. 479 v. MNR, 58 DTC 9, 18 Tax ABC 272
Fees received by the taxpayer for guaranteeing loans made by a non-resident bank to non-resident persons were characterized as service fees rather...
Administrative Policy
5 November 1999 Internal T.I. 9910637 - MAKING OF LOANS
Where a promissory note is issued to pay a dividend, the creditor (in this case, an NRO) will not be considered to have made a loan because no...
5 July 1995 External T.I. 5-950242
If one to six months after a bank has lent funds to Canco, the newly incorporated Canadian parent of Canco ("Newco") purchases the indebtedness...
18 February 1994 External T.I. 9324055 - NRO - "MAKING OF A LOAN" (HAA 6666-1)
Where an NRO is owed a loan receivable from a related taxable Canadian corporation, the making of an election under s. 78(1), or a change to the...
23 November 1992 T.I. 920625 (September 1993 Access Letter, p. 421, ¶C117-205)
In determining whether the principal business of a supposed NRO was trading in securities, it was necessary to determine whether the activities...
October 1992, Central Region Rulings Directorate Tax Seminar, Q. E (May 1993 Access Letter, p. 229)
Funded indebtedness refers to debt obligations that relate to the capital structure of the company, and include bonds, debentures and long-term...
16 September 1992 T.I. (Tax Window, No. 24, p. 14, ¶2193)
Because the intention of the NRO legislation is not to provide Canadian investors with another vehicle for their investment portfolio, RC will...
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| Tax Topics - General Concepts - Ownership | 73 |
ATR-43, February 17, 1992
The U.S. parent ("US Co.") of a Canadian subsidiary ("Canco") establishes a wholly-owned subsidiary ("Newco") which is intended to be an NRO, and...