Regulation 8000 - Prescribed Reserve Amount and Recovery Rate

Paragraph 8000(a)

Administrative Policy

15 December 2014 External T.I. 2014-0548041E5 - Leasing Properties

primary purpose of logging trucks not highway use

Logging trucks were designed for logging (entailing heavy duty use on dirt and gravel logging roads) and not for highway freight haulage and with a gross vehicle weight of 33,001 pounds or more and are equipped with extra fuel tanks, head ach rake and power take off to run a loader mounted on a log trailer. In finding that they were not exempt property, CRA stated:

[T]he primary purpose of the logging trucks… is that they are to be specifically used in the activity of logging on dirt and gravel roads and not the highway. …[L]ogging trucks that are specifically designed and built for off-road use are not "exempt property"... .

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 16.1 - Subsection 16.1(1) no late election 15

Subsection 8300(1)

Individual Pension PLan

Administrative Policy

11 May 2017 Internal T.I. 2016-0665931I7 - Related to participating employer

two unrelated 50% shareholders potentially could both be related to the corporation based on Duha USA rights and s. 251(5)(b) rights

In Scenario 1, Individuals A and B are related, and each owns 50 common shares of their employer (the “Employer”), which is a participating employer in a registered pension plan (“RPP”) containing defined benefit provisions. Individuals A and B are the only members of the plan. Scenario 2 is the same except that Individuals A and B are unrelated.

Is either individual related to the Employer for purposes of the “individual pension plan” definition in Reg. 8300(1).

Respecting Scenario 1, the Directorate stated:

Individual A and Individual B form a related group that controls the Employer and are both related to the Employer pursuant to paragraph 251(2)(b) … [so that] the definition of IPP … is satisfied.

Respecting Scenario 2:

[A]s is apparent from Duha, the determination of whether a person exercises de jure control … must also take into consideration whether any specific or unique limitation on a shareholder’s power to control the election of the board or the board’s power to manage the business and affairs of the company, is manifested in either the constating documents of the corporation, or any unanimous shareholder agreement.

Therefore, it is possible that … Individual A or Individual B could … possess de jure control of the Employer and be related to the Employer under subparagraph 251(2)(b)(i).

… If Individual A or Individual B possessed a right such that the individual would be deemed to own sufficient shares to control the Employer under paragraph 251(5)(b), then the individual would be related to the Employer under subparagraph 251(2)(b)(i).

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 251 - Subsection 251(2) - Paragraph 251(2)(b) - Subparagraph 251(2)(b)(i) under Duha, a 50% shareholder potentially can have de jure control 189
Tax Topics - Income Tax Act - Section 251 - Subsection 251(5) - Paragraph 251(5)(b) s. 251(5)(b) deemed control does not undercut actual de jure control 138