Subsection 251.2(1)
Investment Fund
Articles
Josh Jones, Jeffrey Love, "Recent Developments in Asset Management", draft 2023 CTF Annual Conference paper
Permanent tainting if momentary breach of any condition (p. 26)
- A trust breaching any of the conditions in paras. (a) or (b) of the definition of...
Subsection 251.2(2)
Paragraph 251.2(2)(a)
See Also
Birchcliff Energy Ltd. v. The Queen, 2017 TCC 234
A newly-launched public corporation ("Birchcliff") sought to access the losses and credits of a lossco ("Veracel"). A substantial subscription...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Sham | ephemeral transactions under a Plan of Arrangement were not a sham | 215 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) | series of transactions found to be an avoidance transaction | 306 |
| Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) | raising share equity through a lossco immediately before its amalgamation was abusive | 278 |
Crystal Beach Park Limited v. The Queen, 2006 DTC 2845, 2006 TCC 183
In finding that two business associates (Tiburzi and Gelder) were not a group of persons, Sheridan J. noted that their past business dealings with...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 49 | |
| Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) | the essence of a property was as a recreational property, so that addition of a marina and residential component did not create a new business | 218 |
Administrative Policy
10 October 2024 APFF Roundtable Q. 17, 2024-1028981C6 - Acquisition de contrôle
Situation 1
A, B and C were three unrelated individuals. A and B, who were the sole shareholders of Opco, each holding 50% of the common shares,...
4 June 2024 STEP Roundtable Q. 4, 2024-1003461C6 - Acquisition of Control
Has there been any change to the position in IT-302R3 that a change of executor, administrator or trustee of an estate does not result in an...
4 June 2024 STEP Roundtable Q. 3, 2024-1003471C6 - Acquisition of Control
If a controlling shareholder of a corporation becomes incapable and an unrelated person (or persons) starts acting on the shareholder’s behalf...
15 June 2022 STEP Roundtable Q. 6, 2022-0928191C6 - Acquisition of control
A Canadian corporation is wholly owned by a trust, which is a discretionary trust, so that s. 256(7)(i) does not apply. Is there an acquisition...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 256 - Subsection 256(7) - Paragraph 256(7)(a) - Subparagraph 256(7)(a)(i) - Clause 256(7)(a)(i)(A) | application of s. 256(7)(a)(i)(A) where trustee is replaced by related trustee | 202 |
2021 Ruling 2020-0874931R3 F - Post-mortem Pipeline
The statement of facts indicated (at para. 35) that the resignation and replacement of the executor of an estate resulted in a deemed taxation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) | pipeline using a joint Newco of children and estate | 415 |
3 April 2019 Internal T.I. 2018-0787561I7 - Partnership and the Meaning of "Related"
In the course of a routine response, CRA noted its position that “when a partnership owns shares in a corporation … [t]he partnership...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(c) - Subparagraph 251(2)(c)(i) | partnership agreement consulted to determine whether partner controls a corporation held by the partnership | 134 |
15 October 2014 External T.I. 2014-0547551E5 F - Acquisition of Control
The common shares of Opco are held as follows: A-20%; B-9%; C-10%; D-25%; E-10%; F-13%; G-13%. A, B and C are a related group as are E, F and G. D...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 249 - Subsection 249(4) | reduction in CCPC shareholders from 7 to 4 likely would result in AOC | 287 |
18 December 2013 External T.I. 2013-0511101E5 F - Substantial interest - Part VI.1
An inter vivos trust (Trust), with three individual trustees holds Class A non-voting common shares and C special voting shares of Corporation. An...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 191 - Subsection 191(3) | creation of substantial interest through redemption of special voting shares | 414 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Disposition | no disposition of shares that became voting by operation of law (due to cancellation of voting shares) | 171 |
| Tax Topics - Income Tax Act - Section 249 - Subsection 249(4) | voting rights shifted to 2nd trust with same trustees: no control change | 179 |
5 October 2012 APFF Roundtable Q. 17, 2012-0454111C6 F - Power of attorney and acquisition of control
Mr. X, who is the sole shareholder of XYZ Inc., signs a mandate (power of attorney) in favour of his accountant (with whom he deals at arm's...
8 October 2010 Roundtable, 2010-0373131C6 F - Présomption d'action concertée
What is the basis for the presumption that the three unrelated shareholders of a private corporation will act together to control the corporation,...
21 March 2005 Internal T.I. 2005-0119961I7 F - CCPC STATUS
USco disposed of 50% of the shares of Canco to another corporation ("Holdco" – that was a Canadian-owned Canadian corporation), "retroactive" to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | effective date of transfer of shares (entailing acquisition of control) cannot precede determination of essential contract elements | 145 |
Paragraph 251.2(2)(b)
Articles
Josh Jones, Jeffrey Love, "Recent Developments in Asset Management", draft 2023 CTF Annual Conference paper
ETF difficulty in detecting whether a unitholder has become a majority-interest beneficiary (pp 25-26)
- A fund can conclude that it did not...
Subsection 251.2(3)
Paragraph 251.2(3)(b)
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.
Application where trustees vest all interests of a beneficiary (pp. 154-155)
Paragraph 251.2(3)(b) provides that variations or amendments to a...