See Also
Commissioner of Taxation v. Resource Capital Fund III LP, [2014] FCAFC 37 (Fed. Ct. of Austr.)
The appellant ("RCF") was a non-Australian partnership which was assessed on the basis that its gain from the sale of a "member ship interest" in...
Lipson v. The Queen, 2012 DTC 1064 [at at 2796], 2012 TCC 20
The taxpayers received a number of capital distributions from the liquidator of their mother's "succession" (a Quebec estate), but only filed a...
Administrative Policy
1 May 1990 Memorandum AC70442
"With respect to the application of the provisions of section 116 of the Act to the disposition of partnership property, (i) the assumptions in...
84 C.R. - Q.36
S.116 has no application to dispositions of Canadian real estate that constitutes inventory to the non-resident investor.
Articles
Edward A. Heakes, "Another Wave of Foreign Affiliate Proposals", International Tax Planning, Volume XVIII, No. 4, 2013, p. 1275
De minimis partnership interests are included in test (p. 1276
[I]f a taxpayer holds 5% of the shares of a listed company and is a partner in a...
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
Includes discussion of change in CRA policy (net to gross asset value) re determination of whether shares derive their value primarily from real...
Michael N. Kandev, Fred Purkey, "Practical Troubles With the Disposition of Canadian-Situs Property by Nonresidents of Canada", Practitioner's Corner, Tax Notes International, 12 September 2011, p. 807.
David W. Ross, "Non-Resident Unitholders - Impact on Status", Resource Sector Taxation, 2004, p. 76: Discussion whether net profit interests are interests in respect of real property.
Paragraph (a)
Administrative Policy
26 May 2022 External T.I. 2019-0813761E5 - Taxable Canadian property-solar and wind projects
Canadian-managed funds purchased from time to time, from non-residents, Canadian-situs solar electric power generating projects (consisting of a...
22 June 2001 Internal T.I. 2001-0078457 F - Décret remise d'impôt revenu gagné au Québec
A non-resident inherited a royalty entitlement to a percentage of the net proceeds of sales from a Quebec gold mine, and then sold the royalty to...
Articles
Michel Ranger, Rhonda Rudick, "Federal and Provincial Tax Considerations Relating to Non-Resident Investment in Canadian Real Estate", 2019 Conference Report (Canadian Tax Foundation), 32:1 – 39
Quebec taxation of income from specified immovable property
[N[on-resident inter vivos trusts that own immovable property in Quebec and that earn...
Paragraph (b)
Administrative Policy
19 June 2015 STEP Roundtable, Q. 10
A testator dies leaving an estate comprised mostly of real property situated in Canada (a principal residence). Upon completion of the estate...
27 June 2013 External T.I. 2012-0459481E5 - Taxation of a Non-Resident
In response to a query as to whether precious metal coins stored in Canada on behalf of a non-resident individual would be taxable Canadian...
7 July 2011 External T.I. 2011-0403271E5 - Non-resident's taxable income in Canada
Gold bullion situated in Canada owned by a non-resident is not taxable Canadian property provided that it is not part of the inventory of a...
92 C.M.TC - Q.6
It is essentially a question of fact whether a ship used in international shipping constitutes taxable Canadian property.
Paragraph (c)
Articles
Michel Ranger, Rhonda Rudick, "Federal and Provincial Tax Considerations Relating to Non-Resident Investment in Canadian Real Estate", 2019 Conference Report (Canadian Tax Foundation), 32:1 – 39
ARQ position that shares with no connection to Quebec can be taxable Quebec property (pp. 32:20-21)
[I]n certain circumstances shares of a...
Paragraph (d)
See Also
Commissioner of Taxation v Resource Capital Fund IV LP Commissioner of Taxation v Resource Capital Fund IV LP, [2019] FCAFC 51
Two Caymans investment LPs (“RCF IV” and RCF V”) whose limited partners were mostly U.S. residents, realized gains from the disposal of...
Resource Capital Fund IV LP v Commissioner of Taxation, [2018] FCA 41 (Federal Court of Australia), rev'd on various grounds [2019] FCAFC 51
Two Caymans investment LPs (“RCF IV” and RCF V”) whose limited partners were mostly U.S. residents, realized gains from the disposal of...
Administrative Policy
22 September 2017 External T.I. 2016-0668041E5 - TCP and Article 13(5) of Canada-UK Treaty
A Netherlands company (“BVCo”) wholly-owns:
- All the shares, with a fair market value (“FMV”) of $1M, of a Canadian subsidiary...
1 May 2017 Internal T.I. 2015-0624511I7 - 248(1)(e)(ii) of the definition of TCP
A non-resident trust (the “Trust”) took the position that its shares of various private non-resident corporations (“NRCos”) were not...
1 March 2017 External T.I. 2016-0658431E5 - Article XIII of Canada-U.S. Convention
The question of whether a share or trust interest derives its value from Canadian real property for purposes of the Canada-U.S. Treaty is a...
6 December 2016 External T.I. 2014-0542551E5 - Taxable Canadian Property
A Canadian resident individual (the “Taxpayer”) sold a principal residence and invested the proceeds in shares of publicly traded corporations...
2012 IFA Roundtable, Q.5 [preliminary -final above]
In determining whether the shares of of a Canadian corporation (Canco 1) are taxable Canadian property, CRA will apply a proportionate value...
2013 Ruling 2012-0444431R3 - Taxable Canadian Property
A partnership (Foreign Partnership), whose non-resident members (Investors) are resident in Foreign Countries 1 through 5, uses a portion of its...
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...
17 May 2012 IFA Conference Roundtable, 2012-0444091C6 - Definition of taxable Canadian property
In determining (when a non-resident disposes of shares of Parent) what portion of the shares of the Subsidiary of Parent represent real or...
28 November 2011 CTF Roundtable, 2011-0425901C6 - Does share derive value principally from real prop
In response to a question as to how the 50%-derived-from-real-property test should be applied where the non-resident disposes of shares of Parent...
Articles
Jin Wen, "TCP and Intercompany Loans", Tax for the Owner-Manager, Vol. 20, No. 2, p. 9
- 2015-0624511I7 and 2012-0444091C6 indicate that that indebtedness between a parent and a wholly owned subsidiary has no impact on the...
John Tobin, "Infrastructure and P3 Projects", 2017 Conference Report (Canadian Tax Foundation), 10:1-31
TCP status on loans to P3 Projecto LP potentially avoided if partners of non-resident collective investment vehicle partnership lend directly to...
Jared A. Mackey, "Canada Revenue Agency Views on Taxable Canadian Property Determinations Involving Subsidiaries", Tax Topics (Wolters Kluwer), No. 2315, July 21, 2016 p. 1
Proportionate value approach to determining what portion of equity is Canadian real/resource property (“CRP”) (p. 2)
If a subsidiary's shares...
Timothy Hughes, Matias Milet, Marc Richardson-Arnould, "Private Equity Funds – Selected Canadian Tax Issues", Tax Management International Journal, 2016, p.84
Goodwill fluctuations relative to real estate may potentially taint private equity investments (p. 86)
Private equity funds currently invest...
Sheryl Troup, "Purchasing Private Corporation Shares: Hazards if the Vendor is Non-Resident", Canadian Tax Focus, Volume 3, No. 4, November 2013, p. 5.
Gross v. net asset method (p.5)
At a CRA and Revenue Québec round table published in the Canadian Tax Foundation's 2011 Conference Report, the...
Paragraph (e)
Administrative Policy
19 March 2013 Internal T.I. 2010-0385931I7 - Taxable Canadian property and Partnerships
A partnership is disposing of its 25% shareholding of a listed public corporation ("Pubco"). Those shares derived more than 50% of their fair...
29 November 2011 November CTF Roundtable, 2011-0425931C6 - 2011 CTF - Question 20
CRA confirmed that:
when determining whether a share listed on a designated stock exchange is TCP at "any particular time" during a 60 month...
Articles
Jack Bernstein, Francesco Gucciardo, "TCP Proposal Overshoots Objective?", Canadian Tax Highlights, Vol. 21, No. 8, p. 4
The authors provided the following example showing that a small direct holding of shares of a Canco could become taxable Canadian property under...
Paragraph (f)
Administrative Policy
7 March 2016 External T.I. 2015-0608211E5 - Assignment of right to purchase
Would an assignment to a trust by a non-resident person of a right to purchase a Canadian apartment unit be considered a disposition of taxable...
18 December 2002 External T.I. 2002-0151795 - Options and Taxable Canadian Property
In light of the repeal of s. 115(3), a taxpayer who owns directly 20% of the shares of a listed corporation and has an option to acquire an...
91 C.R. - Q.49
RC treats options to acquire property as described in s. 115(1)(b)(iv) held by non-resident persons, or persons with whom they did not deal at...