Subsection 251.1(1)
Administrative Policy
18 February 2002 External T.I. 2000-0046075 - Trust Affiliated with a Corporation
Reiteration of CCRA policy that a trust is affiliated with another trust if it has the same trustee, or with a corporation which is controlled by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | "unless context otherwise requires" | 69 |
Paragraph 251.1(1)(a)
Cases
Miller Estate v. Canada (Attorney General), 2002 DTC 7577, 2002 FCA 445
An estate was unsuccessful in a submission that, by virtue of a court order which restricted the distribution or administration of the estate, the...
Administrative Policy
4 April 2003 External T.I. 2002-0171635 F - PERTE APPARENTE
The superficial loss rules did not apply where an individual sold his shares of a public corporation at a loss and, within 30 days of that sale,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Superficial Loss | purchase within 30 days by daughter of share vendor did not engage the superficial loss rules | 46 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.3) | purchase within 30 days by daughter of share vendor’s controlling shareholder did not engage the superficial loss rules | 59 |
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(b) | corporation and daughter of its controlling shareholder not affiliated | 59 |
Paragraph 251.1(1)(b)
Administrative Policy
2009 Ruling 2008-0289771R3 - Loss Consolidation
A corporation ("Lossco") that was controlled by an individual ("X") was accepted as being affiliated with a corporation ("Opco") that was held by...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(1) - Paragraph 111(1)(a) | iteration of loss transactions | 74 |
4 April 2003 External T.I. 2002-0171635 F - PERTE APPARENTE
The suspended loss rules did not apply where a holding company sold its shares of a public corporation at a loss and, within 30 days of that sale,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Superficial Loss | purchase within 30 days by daughter of share vendor did not engage the superficial loss rules | 46 |
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.3) | purchase within 30 days by daughter of share vendor’s controlling shareholder did not engage the superficial loss rules | 59 |
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(a) | father and daughter not affiliated | 46 |
6 March 2001 External T.I. 2000-0062505 - Affiliated Persons - Stop Loss Rules
Where an estate has de facto control of a corporation (Holdco) by virtue of control of a corporate trustee which holds all the voting shares of...
5 March 2001 External T.I. 2000-007079
A trust of which Mr. A is the sole trustee is affiliated with a corporation controlled by Mr. A in his individual capacity.
Subparagraph 251.1(1)(b)(ii)
Administrative Policy
4 August 2010 External T.I. 2009-0330501E5 F - Superficial loss
An inter-vivos trust, whose beneficiaries are X, X's issue and another trust, owns all of the voting and participating shares of Opco, and X owns...
Paragraph 251.1(1)(c)
Administrative Policy
4 September 1997 External T.I. 9710065 - AFFILIATED PERSONS (LIMITED P-SHIP CONTROLS)
The taxpayer described a structure in which the individual wholly-owning shareholder ("X") of "Xco" held 65% of a corporation ("Zco") which held...
Subparagraph 251.1(1)(c)(i)
Administrative Policy
9 June 2022 External T.I. 2022-0930081E5 - Application of paragraph 251.1(4)(c)
S. 251.1(4)(c) provides that for the purposes of the definition of affiliated persons in s. 251.1:
notwithstanding subsection 104(1), a reference...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(4) - Paragraph 251.1(4)(c) | reference to “trust” includes a person that happens to be a trust | 198 |
Paragraph 251.1(1)(d)
Administrative Policy
15 January 2014 External T.I. 2013-0515651E5 F - Affiliated persons
A corporation is controlled by one person who also is a majority-interest partner of a partnership.
The corporation and partnership would not be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(e) | corporation is affiliated with partnership of which its controlling shareholder is a majority-interest partner | 82 |
Paragraph 251.1(1)(e)
Administrative Policy
15 January 2014 External T.I. 2013-0515651E5 F - Affiliated persons
Where a corporation is controlled by one person who also is a majority-interest partner of a partnership, the corporation and partnership would be...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(d) | control by a person is not control by a group of persons | 107 |
Paragraph 251.1(1)(g)
Administrative Policy
5 October 2012 Roundtable, 2012-0453181C6 F - Person affiliated with RESP and RDSP
Is it the contributor to an RESP or instead the beneficiary who is affiliated with that plan, or potentially both? What about an RDSP?
CRA first...
30 October 2001 External T.I. 2001-0100555 F - PERTE ET REER
Regarding the sale of shares of a public company by a corporation, wholly owned by an individual, to the individual's RRSP, before the addition of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.3) | suspended loss rule did not apply to sale by individual’s corporation to that individual’s RRSP | 72 |
Subparagraph 251.1(1)(g)(ii)
Articles
Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79
Example of 2 trusts sharing a majority-interest beneficiary who are not affiliated (p. 28:18)
… Canco, a corporation, is a majority interest...
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.
Limited scope of s. 251.1(l)(g)(ii) (p. 134)
Subparagraph 251.1(l)(g)(ii) provides that a trust is affiliated with a person that would be...
Subsection 251.1(3) - Definitions
Contributor
Administrative Policy
25 August 2015 External T.I. 2015-0571271E5 F - Affiliated Trusts under Paragraph 251.1(1)(h)
Mr. X was the settlor and is sole beneficiary of Trust A and is its trustee along with his brother. The trustees of Trust B, which was a...
10 October 2014 APFF Roundtable Q. 5, 2014-0534851C6 F - 2014 APFF Roundtable, Q. 5 - 251.1(3) Definition of "contributor"
Unlike the s. 94(1) definition, the s. 251.1(3) definition does not specify that a contributor includes a decedent. Is one included? CRA responded...
Majority-interest beneficiary
Administrative Policy
2 October 2019 Internal T.I. 2019-0803691I7 - 69(11) - majority interest beneficiary
The residue of Father’s estate was divided equally among his children including Son, with each child being entitled to the income from that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(4) - Paragraph 251.1(4)(d) - Subparagraph 251.1(4)(d)(i) | deemed advancement was not sufficient to make a child's interest that of majority-interest beneficiary | 288 |
10 October 2014 APFF Roundtable, 2014-0534841C6 F - Majority-interest beneficiary
Where a person is not a beneficiary, but it affiliated with a beneficiary with a majority interest in a trust, is that person also included in the...
Articles
Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79
Inclusion in “majority-interest beneficiary” of affiliated persons who are not beneficiaries (p. 28:20)
[T]he definition does not appear to...
Majority-interest group of beneficiaries
Articles
Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79
Determination of whether beneficiaries constitute a “group” (pp. 28:33-34)
We suggest that the above case-law principles should be applied to...
Subsection 251.1(4)
Paragraph 251.1(4)(a)
Administrative Policy
4 October 2023 Internal T.I. 2020-0837811I7 F - Suspended loss
Aco disposed of its shares of Cco (the “Subject Shares”) at a loss to a wholly-owned subsidiary of Aco (Bco). On a triangular amalgamation of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 40 - Subsection 40(3.5) - Paragraph 40(3.5)(c) - Subparagraph 40(3.5)(c)(i) | suspended loss rule continued to apply when the transferee was amalgamated, then wound-up into the transferor | 196 |
Paragraph 251.1(4)(c)
Administrative Policy
9 June 2022 External T.I. 2022-0930081E5 - Application of paragraph 251.1(4)(c)
In applying s. 251.1(4)(c) to s. 251.1(1), does it apply only when dealing with the word “trust”, i.e., does it apply only to ss. 251.1(1)(g)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(1) - Paragraph 251.1(1)(c) - Subparagraph 251.1(1)(c)(i) | common or affiliated trustees do not by themselves cause entities to be affiliated | 186 |
Paragraph 251.1(4)(d)
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.
Affiliation of discretionary beneficiary with trust (p. 133)
[W]hen the person has a discretionary interest in the income or capital or a trust,...
new item
Subparagraph 251.1(4)(d)(i)
Administrative Policy
2 October 2019 Internal T.I. 2019-0803691I7 - 69(11) - majority interest beneficiary
The residue of Father’s estate was divided equally among his children including Son, with each child being entitled to the income from that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251.1 - Subsection 251.1(3) - Majority-interest beneficiary | suggests that a child likely was not a majority-interest beneficiary as a valuation matter | 250 |
Articles
Jeffrey T. Love, Kenneth R. Hauser, "How Various Aggregation Rules Apply to Trusts", 2018 Conference Report (Canadian Tax Foundation), 28: 1-79
Two alternative interpretations of s. 251.1(4)(d)(i) (pp. 28:22-23)
[I]f under the terms of the trust the income that a beneficiary may receive...